Conservation and management of forests in the Paraguayan Chaco through payments for ecosystem services

The project area is the community of Mistolar in the far West of Paraguay, close to the border with Bolivia and Argentina. The predominant ecosystem type in this area is Chaco, with several typical vegetation types like gallery forest and mosaics with (periodically flooded) savanna and forest patches with many palms. The most significant animal species found in the area is the Chacoan peccary (Catagonus wagneri). The project area is inhabited by 37 families (296 persons) of the indigenous ethnicity Nivaclé. The community has an elementary school but no permanent medical attention. The main sources of income are seasonal work, hunting, agriculture and cattle raising. The Chaco is a very fragile type of ecosystem which is easily disturbed. One of the main environmental risks in the project area is further desertification caused by inappropriate use of the resources and a negative water balance. The human pressures in the wider region consist of extensive cattle ranging, wood extraction, hunting for pets and food uses and large infrstructure projects. In 2006, the Paraguayan government introduced a law on payments for ecosystem services. This law regulates which persons and organisations are eligible for receiving payments for ecosystem services and under which conditions. Fundación Yvy Porã proposes to use this law as a tool for achieving the overall goal of the project, which is conserving the forest resources of Mistolar. They hope to reach this goal by attaining the following three results: 1) Three (out of eight) administrative steps necessary to receive payments for ecosystem services completed; 2) 5 alternative livelihoods projects designed and funding for these projects secured and 3) Comunity capacity to implement and monitor management plans related to environmental services, forestry and livelihood projects enhanced.