In 2022, Bolivia submitted a proposal to the LEAF (Lowering Emissions by Accelerating Forest Finance) Coalition for results-based payments to reduce deforestation across 12.5 million hectares in Pando and the Indigenous Guaraní Municipality of Charagua Iyambae. In July 2023, in collaboration with Bolivia’s Vice Presidency, CSF was tasked with designing a Benefit Sharing Mechanism (BSM) through a participatory process. While intended for LEAF funding allocation, the BSM will also serve as a model for resource distribution in other jurisdictions.
CSF’s work focused on key activities, including historical deforestation analysis, resource distribution modeling, and stakeholder coordination with the government of Pando and Indigenous Territorial Authorities (TIOCs) in Charagua. Additionally, CSF developed prioritization frameworks using socioeconomic and environmental indicators, analyzed legal and institutional frameworks, and designed allocation models based on economic, social, and environmental criteria. A cost analysis estimated financial needs for the mechanism’s five-year implementation.
The project’s main output is a comprehensive BSM design document detailing the institutional framework, cost projections, and equitable resource distribution criteria at central, jurisdictional, and local levels. The mechanism links benefits to measurable conservation outcomes, ensuring alignment with environmental goals. The design process included consultations with key institutions like APMT and BDP to refine and validate the mechanism.
Once CSF’s role concludes, Bolivian authorities will oversee implementation, fostering long-term conservation by incentivizing sustainable practices. This initiative supports global efforts to combat deforestation and climate change by preserving 12.5 million hectares of forest. By promoting equitable benefit-sharing, it advances international goals of reducing emissions and strengthening environmental stewardship.
Funded by the Swedish International Development Cooperation Agency (SIDA), this initiative marks a major milestone in Bolivia’s forest conservation efforts. Its successful design provides a framework for similar initiatives, paving the way for sustainable environmental management and fair resource distribution.
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Image: Eduardo Avaroa Andean Fauna National Reserve in Bolivia
Image Source: Shutterstock.com