The Gran Chaco Pathways Towards a Sustainable Future 2025

Innovative Finance for the Amazon, Cerrado and Chaco (IFACC) BOX 18 IFACC is an initiative of The Nature Conservancy, the Tropical Forest Alliance and the United Nations Environment Programme to significantly increase and accelerate lending and investment in sustainable agriculture in Brazil, Argentina and Paraguay. IFACC’s goal is to mobilize $10 billion in commitments and disbursements by 2030 by bringing together leading companies, banks and investors who, together, work to meet the need for transitional finance in the production of beef, soy and other agricultural products without further deforestation or conversion. Source: IFACC. 4.3 From farm to industry: harnessing private sector opportunities for sustainable development The productive and corporate sectors in the Gran Chaco are increasingly embracing initiatives to advance sustainable development. These efforts centre on sustainable and regenerative production practices, robust traceability systems and alternative income-generating pathways such as ecotourism, particularly within the soybean and beef value chains. Key initiatives poised for scaling-up to drive this transition are explored below. Regenerative, integrated production models can enhance productivity and minimize environmental impacts Sustainable strategies such as regenerative agriculture and livestock farming95 and integrated crop-livestock-forestry (ICLF) systems are being promoted across the region. These approaches incorporate principles of proper soil and herd management, as well as promoting the health of both humans and ecosystems. They include practices such as rotational grazing and the use of native grasslands to minimize environmental impact. In Argentina, notable initiatives include projects conducted by The Nature Conservancy, the NGO Solidaridad96 and recent efforts by the Chaco provincial government.97 ICLF in Argentina seek to balance livestock production with ecosystem conservation, preventing deforestation and safeguarding the environmental services provided by forests. This approach also aims to address unsustainable practices in silvo-pastoral systems, which, in some cases, have contributed to deforestation and the degradation of natural resources.98 This project is implemented by the National Secretariat for the Environment, the Secretariat of Agriculture, Livestock and Fisheries, the National Agricultural Technology Institute (INTA), provincial agencies, livestock producers and NGOs such as Fundación Vida Silvestre. In Paraguay, Mennonite cooperatives adhere to sustainability regulations by preserving over 25% of their properties as reserves or implementing restoration measures, while also maintaining forest windbreaks. They also promote sustainable livestock projects in some cases: one study shows that semi-intensive livestock farming implemented by such communities maintained the ecosystem services of the forest while also encouraging regeneration processes in the Paraguayan Chaco Forest.99 In addition to Mennonite-led initiatives in Paraguay, the Alliance for Sustainable Development – a collaboration between WWF-Paraguay and the United States Agency for International Development (USAID) – is advancing silvo-pastoral systems in the Chaco region. This initiative focuses on integrating tree cover into grazing areas, thereby enhancing biodiversity, improving soil health and increasing livestock productivity. By combining local knowledge with technical expertise, the project aims to develop and replicate successful silvo-pastoral models across the Chaco, promoting sustainable land use and contributing to climate change adaptation.100 In Bolivia, most producers in the Gran Chaco engage in environmentally sustainable production that follows regenerative principles. Through the NGO Nativa Bolivia, efforts are focused on certifying 100,000 hectares in the Department of Tarija as regenerative livestock lands. According to consultations conducted for this report, the initiative targets medium-sized properties, ensuring that deforestation does not exceed 5%. This approach underscores a strong commitment to preserving environmental integrity while promoting sustainable livestock practices. In Bolivia, most producers in the Gran Chaco engage in environmentally sustainable production that follows regenerative principles. The Gran Chaco: Pathways Towards a Sustainable Future 41