Chile’s Forest Conservation: A Model for Climate Change Mitigation

"Chile's experience with climate and forest conservation provides key insights for countries aiming to strengthen efforts."
Climate Change | Chile's Forests

South America’s Forest Fires Highlight Chile’s Climate Challenges

In recent months, South America has faced record-breaking forest fires, underscoring the urgent need to address the global climate crisis. Chile, in particular, is grappling with this harsh reality as its fire season peaks from late November to April. The country has witnessed devastating wildfires, such as the destruction of Santa Olga in 2017 and recent incidents in Viña del Mar and Valparaíso, which have caused significant damage and affected numerous communities.

The fires are not an isolated phenomenon but are closely linked to climate change. Chile has been enduring an intense drought for over a decade, earning it the classification of a mega-drought. According to the World Resources Institute (WRI), Chile is among the most water-stressed countries worldwide. This situation creates a vicious cycle of droughts, heatwaves, and wildfires, which deplete water resources, destroy ecosystems, and increase CO2 emissions.

Preserving Chile’s forests is crucial not only for environmental reasons but also for the country’s economic and social stability. As one expert noted, “Protecting forests means protecting water – and vice-versa, among other benefits from nature.” Native forests cover about 20% of Chile’s territory, offering essential ecological services and cultural and medicinal resources for Indigenous and rural communities. These areas support diverse wildlife, including the pudú, the world’s smallest deer.

Chile’s commitment to forest conservation is reflected in its 2017-2025 National Strategy on Climate Change and Vegetation Resources (ENCCRV). This strategy includes the Reducing Emissions from Deforestation and Forest Degradation (REDD+) initiative. Through REDD+, Chile has partnered with the World Bank to reduce carbon emissions by protecting forests. Chile is notable for being the first Latin American country to sign an Emissions Reduction Payment Agreement (ERPA) with the World Bank’s Forest Carbon Partnership Facility (FCPF).

Chile’s ENCCRV aligns international commitments with national efforts, creating a unified strategy to combat climate change and conserve vegetation. The World Bank and FCPF have aided Chile in developing systems for monitoring and reporting emission reductions, ensuring benefits reach those who safeguard the forests.

Chile’s approach is unique in that it applies ENCCRV systems across all public projects, regardless of funding sources. This has allowed the country to distribute over $60 million from the Green Climate Fund in non-monetary benefits, benefiting approximately 3,500 people, including 48% women and 55% Indigenous communities. These benefits have supported various initiatives such as fire prevention, forest restoration, and sustainable use of forest resources.

Actual Beneficiaries of Chile’s ENCCRV – 2021 - 2024

Table 1 – Actual Beneficiaries of Chile’s ENCCRV – 2021 2024

Chile continues to refine its benefit-sharing system to enhance efficiency and effectiveness. This ongoing commitment to improvement is a testament to the country’s proactive approach to climate challenges.

Graph 1: Projects of Chile’s ENCCRV by tenure category, out of a total of 518 projects 2022- 2024

Fig. 1 – Projects of Chile’s ENCCRV by tenure category, out of a total of 518 projects 2022-2024

Lessons Learned from Chile

Chile’s experience offers valuable lessons for other countries aiming to enhance their climate and forest conservation efforts:

  • Unified Systems Maximize Impact: Chile’s cohesive strategy ensures efficient and impactful investments by using the same systems for various projects.
  • Data-Driven Learning Fuels Continuous Improvement: Chile’s systems generate data that informs updates to its climate strategy and benefit-sharing mechanisms, creating a feedback loop for enhanced effectiveness.
  • Long-Term Commitment Pays Off: Chile’s sustained efforts over 15 years in building robust systems have been crucial to its success, with public servants leading key initiatives.

Looking Ahead

Chile is updating its ENCCRV Strategy to align with its Nationally Determined Contributions (NDCs), aiming for carbon neutrality by 2050. Forest conservation remains a central element, contributing to climate mitigation, biodiversity protection, and community support.

As global calls for climate action intensify, Chile demonstrates how national policies can drive meaningful change. By collaborating with various stakeholders, Chile is building a sustainable future and setting an example for other nations facing similar challenges.

By 2024, Chile plans to complete the independent verification of its Emission Reductions, with the first FCPF ERPA payment anticipated in 2025. This milestone is more than a step towards climate targets; it promises tangible benefits for rural communities, protecting their heritage and livelihoods.

Original Story at blogs.worldbank.org