SANTIAGO/WASHINGTON, December 10, 2019 — Chile has signed an agreement with the Forest Carbon Partnership Facility (FCPF), a global partnership housed at the World Bank, unlocking up to $26 million to increase carbon sequestration and reduce emissions from forests. Chile is the first Latin American country to reach this milestone deal that will run until 2025. With this Emission Reductions Payment Agreement (ERPA) in place, Chile is now eligible to receive results-based payments through its ambitious emission reductions program.
“Chile’s robust emission reductions program speaks volumes about the country’s ongoing commitment to sustainable and inclusive forest development,” says Anna Wellenstein, Director for Sustainable Development, Latin America and Caribbean Region at World Bank Group. “It is also the first emission reductions payment agreement in Latin America with the FCPF, and we hope it will motivate other Carbon Fund countries in the region and globally to maintain momentum with their own programs,” she added.
This initiative covers more than 15 million hectares across six of the country’s administrative regions (Araucanía, Biobío, Los Lago, Los Ríos, Maule, and Ñuble). These regions are home to 5.3 million people and encompass the area where most of the country’s forest emissions are produced.
Guided by an inclusive benefit sharing plan, Chile’s emission reductions program will help communities address the main drivers of forest degradation through preventive forest fire management and post-fire restoration, sustainable forest management, forest and livestock management models, and sustainable use of vegetation resources.
“This is a truly significant achievement. We are proud to be the first Latin American country to reach this milestone, which builds on the work implemented through Chile’s National Strategy for Climate Change and Vegetation Resources. This also underscores the relevance of our native forests as an important tool to address the impacts of climate change,” says José Manuel Rebolledo, Executive Director of CONAF (Chile’s national forest corporation).
In Chile’s ERPA, the FCPF Carbon Fund commits to making initial results-based payments for verified reductions of 5.2 million tons of CO2 emissions. The Carbon Fund could make additional results-based payments if Chile surpasses its emission reductions program targets.
Chile’s emission reductions program will support the country’s National Strategy for Climate Change and Vegetation Resources, by helping communities to implement sustainable land management practices, while respecting environmental and social safeguards and strengthening the country’s forest and landscape monitoring system.
Chile’s Environmental and Social Management Framework is helping to better manage potential environmental and social risks associated with its emission reductions program. It is an important step forward in safeguarding rights related to conservation, stakeholders, and their access to sustainable livelihoods.
For the FCPF, this now brings the total value of signed payment agreements, which also include the Democratic Republic of Congo, Ghana and Mozambique, to $181 million. Several other countries are expected to finalize their emission reductions programs and follow suit with ERPA signings in 2020.
The Forest Carbon Partnership Facility (FCPF) is a global partnership of governments, businesses, civil society, and Indigenous Peoples' organizations focused on reducing emissions from deforestation and forest degradation, forest carbon stock conservation, the sustainable management of forests, and the enhancement of forest carbon stocks in developing countries, activities commonly referred to as REDD+. Launched in 2008, the FCPF now works with 47 developing countries across Africa, Asia, and Latin America and the Caribbean, along with 17 donors that have made contributions and commitments totaling $1.3 billion.