Chile Receives $5.1M from World Bank for Cutting Carbon Emissions Through Sustainable Forest Management

Innovative REDD+ Program Links Climate Action with Social Justice and Ecosystem Restoration.

Chile has secured $5.1 million from the World Bank’s Forest Carbon Partnership Facility (FCPF) for successfully reducing 1.03 million tons of carbon emissions caused by deforestation and forest degradation. This is the first installment under Chile’s Emission Reductions Payment Agreement (ERPA), which promises up to $26 million for achieving 5.2 million tons of emission reductions by 2025.

The payment follows a meticulous process of measurement, reporting, and verification (MRV), with the reductions independently validated by a third-party body. This ensures the emission reductions meet FCPF’s rigorous standards of integrity and transparency.

Scope and Impact of Chile’s Emission Reductions Program

The program spans six regions—Maule, Ñuble, Biobío, La Araucanía, Los Ríos, and Los Lagos—which together account for nearly half of Chile’s forested areas. These regions face escalating challenges from climate change, including recurrent wildfires, extended droughts, and advancing desertification. Through sustainable forest management and carbon stock enhancement initiatives, the program not only restores ecosystems but also strengthens local communities’ resilience to climate impacts.

A hallmark of the program is its inclusive benefit-sharing mechanism, designed to prioritize vulnerable groups such as women, Indigenous Peoples, and small landholders. These groups receive direct support and a fair share of the benefits derived from climate action, making the program a global model for equity-driven environmental strategies.

“This milestone highlights Chile’s leadership in addressing the intertwined challenges of climate change, forest degradation, and community resilience,” said Jean-Marc Arbogast, World Bank Group Country Manager for Chile. “Chile’s program is a beacon for integrated climate solutions, setting new standards for transparent and inclusive benefit-sharing mechanisms.”

Complementary Financing and National Commitment

In addition to the FCPF funding, Chile’s efforts benefit from over $60 million from the Green Climate Fund to further forest conservation and climate resilience. These complementary investments reinforce the country’s comprehensive strategy to address its vulnerability to the climate crisis.

Chile’s Minister of Agriculture, Esteban Valenzuela, emphasized the urgent need for sustainable practices: “Chile is acutely vulnerable to climate change, with impacts increasingly evident in agriculture and natural resources. Decarbonization is not only an environmental imperative but an opportunity to strengthen food security and uplift rural communities. Our sustainable forestry program reflects a balanced approach to protecting ecosystems while improving livelihoods.”

Aida Baldini, Executive Director of Chile’s National Forestry Corporation, also underscored the dual objectives of the program: “This payment validates our commitment to fighting the climate crisis. It allows us to enhance forest conservation efforts while directly supporting the most vulnerable communities. This initiative reaffirms that climate action and social justice are inseparable goals.”

Global Leadership and FCPF’s Role

The FCPF has supported 15 countries worldwide in implementing large-scale emission reduction programs. To date, its initiatives have achieved over 105 million tons of emission reductions and distributed $164 million in results-based payments. These programs serve as benchmarks for addressing deforestation and promoting sustainable development.

Chile’s REDD+ program exemplifies how countries can align environmental protection with socioeconomic development. By combining innovative financing mechanisms, community-centered benefit-sharing, and sustainable practices, Chile is charting a path for other nations to follow in tackling the global climate crisis.

Looking Ahead

Chile’s progress in reducing emissions signals its strong commitment to transitioning toward a low-carbon development model. With sustained support from global partnerships and national initiatives, the country is poised to make significant contributions to global climate goals while ensuring a brighter future for its forests and communities.