Chile has secured $5.1 million from the World Bank’s Forest Carbon Partnership Facility (FCPF) for reducing 1.03 million tons of carbon emissions related to deforestation and forest degradation. This is the first payment under Chile’s Emission Reductions Payment Agreement (ERPA) with FCPF, which allows access to up to $26 million for reducing 5.2 million tons of emissions.
The achievement follows a detailed process of measurement, reporting, and verification that confirmed Chile's emission reductions met FCPF's high standards. These reductions were verified by an independent third-party Validation and Verification Body.
The Emission Reductions Program covers six regions in Chile: Maule, Ñuble, Biobío, La Araucanía, Los Ríos, and Los Lagos. These areas are susceptible to climate change impacts like wildfires and droughts. The program promotes sustainable forest management practices and aims to enhance carbon stocks while helping communities build resilience against climate challenges. It features a benefit-sharing mechanism that prioritizes women, Indigenous Peoples, and small property holders.
Jean-Marc Arbogast, World Bank Group Country Manager for Chile, stated: “This milestone underscores Chile’s leadership in tackling the complex challenges of climate change, desertification, and forest degradation.” He highlighted the program as a model for transparent benefit-sharing in climate action.
The ER program also receives support from other financial sources such as over $60 million from the Green Climate Fund for conservation efforts across Chile.
Esteban Valenzuela, Chile's Minister of Agriculture remarked: “Chile is one of the most vulnerable countries to the climate crisis... our commitment to decarbonization is more urgent than ever.”
Aida Baldini from Chile's National Forestry Corporation commented on the significance of this payment as it "validates our commitment to the fight against the climate crisis."
Globally, FCPF has supported 15 countries in delivering emission reductions through programs similar to Chile’s. So far, these initiatives have reported over 105 million tons of emission reductions and disbursed more than $164 million in payments.