The Gran Chaco Pathways Towards a Sustainable Future 2025

The Gran Chaco holds immense untapped potential to balance economic growth, environmental resilience and social equity. While promising initiatives are emerging, scaling-up innovative solutions and addressing critical gaps are essential to transform the region into a global model for sustainable development. By leveraging market- driven strategies, governance improvements and stakeholder collaboration, the Gran Chaco can secure its role as a key contributor to food security, biodiversity conservation and climate mitigation. This report proposes four pathways to unlock the potential of sustainable development in the Gran Chaco: 1 International, regional and national policy- making pathways for a resilient Gran Chaco –Addressing the environmental and social challenges of the Gran Chaco requires coordinated efforts across international, regional and local regulatory and policy-making agendas, with a focus on improving land-use practices and aligning production with conservation goals. –Promoting institutional stability and strengthening governance: a clear and stable regulatory framework is essential for sustainable growth in the Gran Chaco. Key actions include enforcing environmental laws to reduce deforestation, expanding technical and monitoring capacities, fostering collaboration between governments, private sector actors and local communities and scaling-up financial incentives, such as tax concessions and conservation funding, to encourage sustainable practices. –Advancing policies for sustainable land management: robust policies are essential for ensuring Gran Chaco’s sustainable development. Initiatives that enhance the value of standing vegetation while maintaining productivity, such as the creation of the Indigenous Autonomous Government in Charagua (Santa Cruz) and Paraguay’s Voluntary Green Taxonomy provide examples of effective governance for sustainable land management. 2 Leveraging innovative financial mechanisms to incentivize sustainability –To unlock funding for sustainable development, innovative financial tools must be expanded to support producers and attract investments. –Payment for ecosystem services (PES): programmes such as REDD+ (Reducing Emissions from Deforestation and forest Degradation) aim to support conservation in Gran Chaco countries by compensating efforts to reduce deforestation and enhance carbon capture, while ensuring adequate financing to sustain long-term conservation strategies and expand incentives for regenerative agriculture and livestock practices. –Carbon markets and green bonds: Paraguay’s Green Heart of the Chaco project conserves 32,000 hectares of native forest, generating verified carbon credits and fostering economic opportunities for local communities. Meanwhile, the Chaco Vivo Project, one of Paraguay’s largest REDD+ initiatives, protects 187,000 hectares of high-value conservation areas in the Gran Chaco. –Sustainable finance protocols: programmes such as Paraguay’s Procampo Verde demonstrate how green loans can incentivize regenerative practices, offering scalable financial solutions. –Multi-source financing: green and blended finance solutions, private sector investments and international funding can support infrastructure, sustainability projects and value chain improvements. –By aligning financial mechanisms with conservation goals, the region can attract private investment and international funding, transforming sustainability into a viable business model. 3 From farm to industry: harnessing private sector opportunities for sustainable development –Sustainable agricultural and livestock systems are critical to reducing deforestation while maintaining productivity. Initiatives highlighted below demonstrate that economic growth and conservation can co-exist. –Regenerative agriculture programmes: initiatives by The Nature Conservancy, Solidaridad, WWF Paraguay and provincial governments in the Gran Chaco focus on restoring soil health, replenishing water resources and enhancing biodiversity, ensuring long-term yields while preventing deforestation. –Integrated Crop-Livestock-Forestry (ICLF) management: Argentina’s ICLF system promotes sustainable livestock production, conserves forests and addresses deforestation caused by unsustainable agricultural practices, with support from government agencies, NGOs and producers. –Traceability systems for market access: platforms such as Argentina’s VISEC ensure deforestation-free production and compliance with international regulations, enhancing transparency, market competitiveness and supply chain accountability. The Gran Chaco: Pathways Towards a Sustainable Future 5