Executive summary As South America’s second-largest forest, the Gran Chaco is crucial for biodiversity conservation, carbon sequestration, sustaining the livelihoods of traditional communities and supporting regional economies. The Gran Chaco spans over 1 million square kilometres (100 million hectares/Mha) across Argentina, Paraguay, Bolivia and Brazil – an area larger than Spain and Germany combined or roughly equal to the size of Bolivia. This diverse biome – including dry forests, savannas and wetlands – supports over 3,400 plant species, 500 bird species, 150 mammal species and 220 reptile and amphibian species. It also serves as a vital carbon sink and water reservoir, sustaining the livelihoods of over 5.6 million Indigenous People from 27 distinct groups. Over the past few decades, the Gran Chaco has become a regional hub for agricultural and livestock production, showing significant potential for economic growth in the region. The biome has undergone a dynamic and fluctuating transformation in land use. Soybean cultivation expanded significantly, with Argentina increasing production area by 30% between 2001 and 2022 and Paraguay achieving a 16-fold increase from 2012 to 2022. Livestock production also surged, particularly in Paraguay, where 67.4% of beef exports originate from the Gran Chaco. In Argentina, the region now hosts 33% of the national cattle stock, with over 5 million calves from the Gran Chaco marketed to key provinces such as Buenos Aires, Córdoba and Santa Fe. Despite its significant socio-biodiversity importance, the Gran Chaco remains largely overlooked by international sustainability agendas compared to other South American biomes, such as the Amazon and the Cerrado. This neglect has left it highly vulnerable to deforestation, unsustainable practices, land degradation and climate change, which have inflicted a severe economic toll on the region. Since 2000, the region has lost over 13 million hectares of forest cover – equivalent to roughly 13% of its total area and larger than the size of England. Unsustainable agricultural and livestock expansion, combined with lack of resources and inconsistent enforcement of environmental laws, are the primary drivers of this loss. The consequences are far-reaching: escalating greenhouse gas emissions, loss of ecosystem integrity and heightened vulnerability to climate extremes. This is even more critical in the current global climate context, where, according to a report published by the United Nations in October 2024, a continuation of current policies could lead to global warming of up to 3.1°C over the course of this century1 – double the 1.5°C threshold established by the Paris Agreement a decade ago. To prevent this rise, coordinated actions across multiple sectors are essential, with the conservation and preservation of ecosystems being among the most effective and urgent measures. The economic toll from climate impacts is significant and growing. Climate extremes such as prolonged droughts, floods, heatwaves and wildfires are disrupting agricultural production across the region. For example: –The 2021-22 drought in Argentina caused $2.67 billion in export losses, $1.44 billion in tax revenue losses and reduced the country’s GDP by 1%. If unaddressed, recurring droughts could reduce Argentina’s GDP by 4% annually by 2050. –In 2019, over 2,000 wildfires in Paraguay’s Gran Chaco caused around $20.9 million in material losses (e.g. fencing, livestock), excluding reforestation costs and basic service disruptions.2 –Wildfires in Argentina’s agricultural sector caused losses of $6 billion in 2020, with recovery costs equivalent to 5-17% of the national soybean production value. –Furthermore, Indigenous Peoples and local communities, recognized as key stewards of the biome, remain largely excluded from decision-making processes. Studies show that respecting Indigenous land rights significantly curtails biodiversity loss, deforestation and degradation. For instance, in Brazil, Indigenous lands lost only 1.2% of native vegetation between 1991 and 2021, compared to 19.9% on private lands.A sustainable future for the Gran Chaco needs to balance production and protection to benefit people and nature. 33% of Argentina’s cattle are reared in the Gran Chaco. 16x increase in soybean cultivation in Paraguayan Chaco (2012-2022). The Gran Chaco: Pathways Towards a Sustainable Future 4

The Gran Chaco Pathways Towards a Sustainable Future 2025