Chile has secured $5.1 million from the World Bank’s Forest Carbon Partnership Facility (FCPF) as part of its efforts to curb climate change by reducing deforestation and forest degradation. The payment is the first tranche under Chile’s Emission Reductions Payment Agreement (ERPA) with the FCPF, which can bring in up to $26 million in funds to reduce 5.2 million tons of carbon emissions.
A Milestone Achievement in Chile’s Climate Change Strategy
This is a remarkable step in Chile’s commitment to reduce carbon emissions through sound management of the forest. The payment has been preceded by a process of measurement, reporting, and verification, thereby guaranteeing that the reductions will be of quality.Independent third-party verification also helped to build confidence in the reductions.
Emission reductions for Chile cover six regions in the country: Maule, Ñuble, Biobío, La Araucanía, Los Ríos, and Los Lagos. The regions are almost half of Chile’s forest cover and are still much at risk of climate change, wild fires, droughts, and desertification. The Emission Reductions Programme eliminates these risks by using sustainable forestry practices in ecosystem restoration and through carbon stocks promotion.
The program increases resilience in the local communities, protects small landowners, women, and Indigenous Peoples who are most affected by forest loss. The benefit-sharing mechanism ensures that those directly affected by environmental damage, such as women, the Indigenous communities, and the smallest land owners, benefit.
The FCPF, part of the World Bank Group, helps countries achieve large-scale emission reductions through effective climate action support. The facility has cut over 105 million tons of emissions globally and distributed more than $164 million in payments. Chile’s program demonstrates how transparent, inclusive climate strategies can deliver impactful results while benefiting local communities.
Chile’s Vision for Sustainable Forest Management
Jean-Marc Arbogast, the World Bank Group Country Manager for Chile, said, “This milestone underscores Chile’s leadership in tackling the complex challenges of climate change, desertification, and forest degradation.”
He added, “The program demonstrates how integrated approaches can deliver tangible climate results while addressing ecosystem vulnerabilities and supporting communities. It also stands as a global model for transparent and inclusive benefit-sharing, ensuring that the rewards of climate action are fairly distributed.”
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Along with World Bank support, the Emission Reductions Program also receives over $60 million from the Green Climate Fund. This funding will strengthen forest conservation and climate resilience across Chile, ensuring forests remain vital in fighting climate change.
