Sustainable Development Report Focuses on Gran Chaco’s Status

The Gran Chaco is the second-largest forest in South America, covering more than 1 million square kilometres (100 million hectares) across Argentina, Paraguay, Bolivia, and Brazil. In 2024, there was a notable increase in deforestation, primarily driven by agricultural expansion, livestock activities, and wildfires, all of which contributed significantly to the degradation of this vital ecosystem.

While much attention has been focused on South America’s other great forested landscapes, the Gran Chaco has quietly endured decades of deforestation and degradation. Over 13 million hectares of forest, an area larger than England, have been lost in the past two decades alone.

Soybean cultivation expanded significantly, with Argentina increasing production area by 30% between 2001 and 2022. Paraguay increased its production 16 times from 2012 to 2022. Livestock production also soared, particularly in Paraguay, where 67% of beef exports originate from the Gran Chaco.

This diverse biome, including dry forests, savannas, and wetlands, supports various plant, bird, mammal, reptile, and amphibian species. It also serves as a vital carbon sink and water reservoir, sustaining the livelihoods of over 5.6 million Indigenous People from 27 distinct groups.

A report from the World Economic Forum (WEF), in collaboration with the Tropical Forest Alliance and Rever Consulting, highlights that sustainable production and forest protection in the Gran Chaco can coexist harmoniously. If the right incentives and governance structures are implemented, these two goals can support one another.

The Graph below shows the distribution of Gran Chaco’s agricultural lands in 2023.

Crops, primarily soybeans, corn, and cotton, comprise 52% of the agricultural area, while pasture accounts for the remaining 47%.

This report highlights a narrative of possibility, demonstrating that sustainable production and forest protection can complement rather than be in conflict.

Many proven solutions exist, such as regenerative agriculture, sustainable cattle ranching, jurisdictional approaches to land-use planning and management, and nature-based finance models.

Regenerative agriculture enhances soil health and captures carbon, improving farming systems’ resilience to climate change. Sustainable cattle ranching can provide livelihoods while reducing deforestation by maintaining and restoring forested areas.

Additionally, jurisdictional approaches to land use planning and management encourage collaboration among various stakeholders, ensuring land is used effectively and sustainably. Nature-based finance models can mobilise conservation and sustainable development resources, linking financial markets with environmental outcomes.

Realising these solutions will require scaling them up, increasing investment, and promoting cooperation and collaboration across sectors. This requires the active engagement of governments to create supportive policies, financial institutions to provide the necessary funding, corporate supply chains to commit to sustainable practices, and local communities to implement and benefit from these initiatives. Together, these actors can drive significant progress toward a future where both sustainable production and forest conservation thrive.

Read the report “The Gran Chaco: Pathways Towards a Sustainable Future” to find out how, with the right investments, policies, and partnerships, the Gran Chaco can become a global model demonstrating that economic growth, environmental protection, and social development can go hand in hand.