TheGranChaco:PathwaysTowardsaSustainableFutureWHITEPAPERMARCH2025IncollaborationwithTropicalForestAllianceandREVERConsultingImages:GettyImages,©HernanPerezAguirre|Greenpeace,Flickr,FundaciónSolidaridadDisclaimerThisdocumentispublishedbytheWorldEconomicForumasacontributiontoaproject,insightareaorinteraction.Thefindings,interpretationsandconclusionsexpressedhereinarearesultofacollaborativeprocessfacilitatedandendorsedbytheWorldEconomicForumbutwhoseresultsdonotnecessarilyrepresenttheviewsoftheWorldEconomicForum,northeentiretyofitsMembers,Partnersorotherstakeholders.©2025WorldEconomicForum.Allrightsreserved.Nopartofthispublicationmaybereproducedortransmittedinanyformorbyanymeans,includingphotocopyingandrecording,orbyanyinformationstorageandretrievalsystem.ContentsForeword3Executivesummary41TheGranChaco:aSouthAmericangiantatacrossroads82Fromlocalfarmstoglobalmarkets:theChaco’srole15infoodsupplychains3UnsustainablepracticesweakenGranChaco’secosystem25andproductivity3.1Historicalsignificance,culturalanddemographicdiversity253.2Biodiversityandenvironmentalservices273.3Land-usechange,vulnerabilitiesandsocio-economic28consequences4UnlockingGranChaco’spotential:pathwaysforsustainable32development4.1Policy-makingpathwaysforaresilientGranChaco334.2Leveraginginnovativefinancialmechanisms39toincentivizesustainability4.3Fromfarmtoindustry:harnessingprivatesector41opportunitiesforsustainabledevelopment4.4Buildingresilient,multi-stakeholdergovernancetonavigate43politicalshiftsanddrivesustainabledevelopment5Calltoaction46Conclusion49Annex50Contributors52Endnotes54TheGranChaco:PathwaysTowardsaSustainableFuture2ForewordTheGranChacoisatacrossroads.SpanningmorethanamillionsquarekilometresacrossArgentina,Paraguay,BoliviaandBrazil,itisoneofthelargestremainingdryforestecosystemsintheworld.Itisalsooneincreasinglyatrisk.WhilemuchattentionhasbeenfocusedonSouthAmerica’sothergreatforestedlandscapes,theGranChacohasquietlyendureddecadesofdeforestationanddegradation,largelydrivenbyunsustainableagriculturalexpansion.Inthepasttwodecadesalone,morethan13millionhectaresofforest–anarealargerthanEngland–havebeenlost.ButthestoryoftheGranChacoisnotjustoneofloss;itisalsoastoryofpotential.Thisvastanddiverseregion,hometomorethan5.6millionIndigenousPeople,isacriticalcarbonsink,abiodiversityhotspotandadriverofeconomicopportunity.Itisaplacewheresustainableproductionandprotectiondonothavetobeatodds.Instead,theycanreinforceeachother–ifwegettheincentivesandgovernanceright.Thatiswhatmakesthisreportsoimportant.Itprovidesaroadmapforhowwecanshiftfromabusiness-as-usualmodeltoonethatembedssustainabledevelopmentatitscore.Itbuildsonlessonslearnedfromotherregions–liketheAmazonandtheCerrado–wheresustainabilityeffortshavedemonstratedthateconomicgrowth,environmentalprotectionandsocialdevelopmentcangohandinhand.Thestakescouldnotbehigher.ClimatechangeisacceleratingandthelossoftheGranChaco’sforestsnotonlycontributestoglobalcarbondioxide(CO2)emissionsbutalsothreatenswatersecurity,foodproductionandbiodiversityacrosstheregion.Theeconomicconsequencesarejustassevere,withprolongeddroughts,floodsandwildfiresincreasinglydisruptinglivelihoodsandnationaleconomies.Ifwefailtoact,theconsequenceswillbefeltfarbeyondtheregion’sborders.AchievingasustainablefuturefortheGranChacorequiresrecognizingitsplurality–aregionofmanyChacoswithinone....
