The eastern region of Paraguay is home to the Alto Paraná forest ecosystem, renowned for its biodiversity and a refuge for many endemic and threatened species. With abundant water resources and fertile soils, about 65 per cent of the region offers optimal conditions for producing global commodities such as soybeans, meat, timber, cellulose, sugarcane, and cotton.

However, satellite data show a disturbing trend of deforestation, with repeated episodes of forest degradation over the years. To address this challenge, the Zero Deforestation Act was introduced, which prohibits the expansion of the agricultural frontier and any transformation activities in forest areas. This measure is part of a government commitment to transitioning to more sustainable production chains.

Among the planned actions, the government aims at the sustainable development and strengthening of the forestry sector, intending to increase exports of deforestation-free products and penetrate new markets, such as the European market, on the eve of implementing the new EUDR regulation.

The project

The EU AL INVEST Green Program (Component 2) project addresses the sustainability challenge in Paraguay’s forestry sector. The primary need is to improve forest resource management by promoting sustainable practices that ensure the conservation of the natural environment and the well-being of local forest-dependent communities.

The project first aims to assess the current situation of the forestry sector and identify areas that require intervention. Next, it will promote sustainability principles among producers and companies by providing technical and training support. In parallel, it will strengthen the actors’ capacities in the forest value chain, ensuring an effective transition to sustainable practices. Finally, it will identify new market opportunities in sustainable sectors, creating the conditions for adequate access.

Il nostro contributo

ETIFOR experts are responsible for conducting diagnostic studies of the forestry sector analyzing the current landscape and its challenges. The results of these analyses are then compiled and presented in a report,

which includes an assessment of critical issues and opportunities in Paraguay’s forestry sector. The report also provides practical guidance and strategies for improving the sector’s sustainability, outlining a more responsible and conservation-oriented forest management roadmap.

In addition, ETIFOR coordinates training for forest value chain actors, providing them with the necessary skills to adopt sustainable practices identified in the report.