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World Bank Document Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized © 2020 The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved This work is a product of the staff of the World Bank. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is subject to copyright. The World Bank encourages dissemination of its knowledge. This work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Attribution Please cite the work as follows: World Bank. 2020. “Chile Forest Note.” Washington, DC: World Bank. All queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: [email protected]. 2 Table of Contents Tables ...................................................................................................................................................... 5 Figures ..................................................................................................................................................... 5 Boxes ....................................................................................................................................................... 5 Acronyms and Abbreviations ............................................................................................................... 6 Executive Summary ............................................................................................................................... 8 1. Chile: Country Context .............................................................................................................. 12 2. Forest Resources .......................................................................................................................... 14 2.1. Forest coverage .............................................................................................................................. 14 2.2. Native forests .................................................................................................................................. 16 2.3. Forest plantations .......................................................................................................................... 17 3. Forest Governance ...................................................................................................................... 19 3.1. Institutional framework .......................................................................................................... 19 3.2. Legal framework ..................................................................................................................... 21 3.3. Policy framework ..................................................................................................................... 22 3.4. Fiscal framework ..................................................................................................................... 26 3.5. Management of forest plantations .......................................................................................... 27 3.6. Management of native forests ................................................................................................. 28 3.7. Biodiversity conservation ........................................................................................................ 29 3.8. Monitoring of forest resources ............................................................................................... 30 4. Forests’ Contribution to Livelihoods and Sustainable Development ..................................... 31 4.1. Economic contribution of forests ........................................................................................... 31 4.1.1. Direct economic contribution of forest sector ....................................................................... 31 4.1.2. Job creation ........................................................................................................................... 31 4.1.3. Forest ecosystem services and the benefiting sectors ........................................................... 32 4.2. Domestic demand and supply—products .............................................................................. 33 4.2.1. Industrial use of wood ........................................................................................................... 33 4.2.2. Forestry exports ..................................................................................................................... 35 4.2.3. Biomass for energy ............................................................................................................... 36 4.2.4. Nonwood forest products ...................................................................................................... 36 4.3. Social dimension ...................................................................................................................... 36 4.4. Forests and climate change ..................................................................................................... 37 5. Challenges and Opportunities .................................................................................................... 39 5.1. Pressures and threats from outside the forest sector ........................................................... 39 5.2. Challenges and opportunities for native forests ................................................................... 40 5.3. Challenges and opportunities for forest plantations ............................................................ 44 5.4. Challenges and opportunities for the forest industry ........................................................... 44 5.5. Social aspects ............................................................................................................................ 45 5.6. Climate change ......................................................................................................................... 46 5.7. Crosscutting governance aspects ............................................................................................ 47 6. Intervention Areas and Activities .............................................................................................. 49 6.1. Current World Bank involvement in the forestry sector ..................................................... 49 6.2. Other relevant interventions ................................................................................................... 51 6.3. Intervention areas and activities ............................................................................................ 51 6.3.1. Short-term interventions ........................................................................................................ 52 6.3.2. Long-term interventions ........................................................................................................ 54 Annex 1. Chile Forest Cover Map. ..................................................................................................... 58 Annex 2. Forest Coverage by Region ................................................................................................. 59 Annex 3. Types of Native Forest in Chile ........................................................................................... 60 Annex 4. Land Degradation and Drought in Chile ........................................................................... 62 Annex 5. Legal Framework of the Forest Sector in Chile ................................................................ 63 Annex 6. Chile Forest Policy 2015–35: Results, Objectives, and Targets for General Objective 2 (productivity and economic growth) .................................................................................................. 64 Annex 7. 2017–25 Chilean Strategy for Climate Change and Vegetation Resources (ENCCRV)66 Annex 8. Principles of Chilean Sustainable Forest Management Certification System (CERTFOR) ............................................................................................................................................................... 68 Annex 9. World Bank Involvement (forestry sector directly or indirectly related projects since 2010) ...................................................................................................................................................... 69 References ............................................................................................................................................. 70 4 Tables Table 1. Native forest landownership features in Chile .............................................................................. 17 Table 2. Outcomes from the plantation extension policy ........................................................................... 24 Table 3. Flow
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