Chile has reached a new milestone in the fight against climate change by being awarded a $5.1 million payment from the World Bank’s Forest Carbon Partnership Facility (FCPF). The Emission Reductions Payment Agreement (ERPA) payment is given to Chile for the reduction of 1.03 million tons of carbon emissions through sustainable forest management practices. This achievement marks the commitment of Chile in addressing the intertwined challenges of climate change, deforestation, and forest degradation.
This is an initiative under the Emission Reductions Program that will cover six regions: Maule, Ñuble, Biobío, La Araucanía, Los Ríos, and Los Lagos, which house almost half of Chile’s forests. These regions are increasingly vulnerable to climate risks such as wildfires, droughts, and desertification. With this program, Chile not only safeguards its forests but also ensures that vulnerable groups such as Indigenous Peoples, women, and small property owners benefit from its climate actions.
Jean-Marc Arbogast, World Bank Group Country Manager for Chile, said the country is an example of leadership in dealing with environmental challenges. He pointed out that the efforts of Chile show how countries can face the complex realities of climate change while promoting social inclusion.
The initiative is an essential component of a broader commitment by Chile to decarbonization. Its integration of sustainable forestry practices into community-driven efforts at conservation forms a holistic basis for combating the loss of trees and building up resilience. Such efforts are reinforced by more than $60 million in financing for the Green Climate Fund, under which the country can scale up conservation and building of resilience.
According to Aida Baldini, the executive director of Chile’s National Forestry Corporation, the program will help in consolidation of conservation efforts and empowerment of the most affected communities by climate change. The benefit-sharing model ensures that financial rewards from emission reductions are distributed equitably among local stakeholders.
Minister of Agriculture of Chile Esteban Valenzuela also stated that for Chile, a decarbonizing country, means also decarbonization of sustainable agriculture, protecting the forest and effective technology application, thus reflecting efforts of environmental degradations towards a sustainable economy development.
The Emissions Reductions Programme is part of a global programme led by the Forest Carbon Partnership Facility, which provides support to countries in achieving jurisdictional-scale emission reductions. In total, this facility has successfully delivered more than 105 million tonnes of emission reductions worldwide and issued over $164 million in results-based payments so far.
Chile’s success under this program sets a benchmark for other nations striving to balance environmental conservation with economic and social development. With the potential to unlock up to $26 million for reducing 5.2 million tons of emissions, Chile’s initiative offers a replicable model for integrating climate resilience with community empowerment.
This milestone highlights the significance of joint efforts at a global level to counter climate change. Chile’s success shows that sustainable forest management can simultaneously tackle environmental, social, and economic issues and provide a way forward to a greener, more equitable future.