WB earmarks $5.1m for Chile to cut 1.03 m tons of CO2 emissions

06 / 01 / 2025

By Marwa Nassar - -

The World Bank’s Forest Carbon Partnership Facility (FCPF) earmarked $5.1 million to Chile with an aim of cutting 1.03 million tons of carbon emissions from deforestation and forest degradation (REDD+).

This marks the first payment under Chile’s Emission Reductions Payment Agreement (ERPA) with FCPF, which provides access to up to $26 million for reducing 5.2 million tons of emissions.

This milestone follows a rigorous process of measurement, reporting, and verification (MRV), which ensured that Chile’s emission reductions met the FCPF’s high standards. The reductions were independently verified by a third-party Validation and Verification Body, underscoring their integrity.

The Emission Reductions Program spans six regions— Maule, Ñuble, Biobío, La Araucanía, Los Ríos and Los Lagos —covering nearly half of Chile’s forest area.

These regions are particularly vulnerable to the impacts of climate change, including recurring wildfires, prolonged droughts, and desertification. Through sustainable forest management practices and initiatives to enhance carbon stocks, the program helps restore ecosystems while supporting communities to build climate resilience.

At its core, the program features a transparent and inclusive benefit-sharing mechanism that prioritizes women, Indigenous Peoples, and small property holders, ensuring that those most affected by deforestation receive direct support and share in the benefits of climate action.

“This milestone underscores Chile’s leadership in tackling the complex challenges of climate change, desertification, and forest degradation,” said Jean-Marc Arbogast, World Bank Group Country Manager for Chile. “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.”

The ER program also benefits from complementary financing, including over $60 million from the Green Climate Fund, which supports forest conservation and climate resilience efforts across the country.

“Chile is one of the most vulnerable countries to the climate crisis, with increasingly evident impacts on our agriculture and natural resources. For this reason, our commitment to decarbonization is more urgent than ever. This means adopting sustainable agricultural practices, protecting our forests and promoting technologies that allow us to be more efficient and resilient,” said Esteban Valenzuela, Chile’s Minister of Agriculture. “The transition to a low-carbon development model is not only an environmental obligation, but an opportunity to strengthen our food security and improve the lives of farmers and rural communities.”

“This payment is a milestone for Chile, as it validates our commitment to the fight against the climate crisis,” said Aida Baldini, executive director of Chile’s National Forestry Corporation. “These resources will allow us to strengthen forest conservation and, above all, support the most vulnerable communities, which are the most affected by the impacts of climate change. This reaffirms that environmental protection can and must go hand in hand with social justice and the well-being of local communities.”