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Government plan: Forestry sector awaits financial instruments to increase plantations

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• The goal is to recover forest plantations affected by wildfires and develop a strategy to increase planting by small producers, enabling this industry to project itself into the future.

The forestry sector in the Biobío Region is eager to learn details about the financial instruments that will create favorable conditions for expanding plantations, one of the measures included in the Industrial Strengthening Plan promoted by the government in the area.

The strategy to increase forest plantations and the plan to boost local demand for parts and components used in wooden housing construction are part of the chapter on strengthening strategic industries for Biobío, presented a week ago in the region by Economy Minister Nicolás Grau.

The goal is to recover forest plantations affected by wildfires and develop a strategy to increase planting by small producers, enabling this industry to project itself into the future.

To achieve this, among other things, it is necessary to reverse the decline in forested area over the last decade—a trend that has been particularly significant since the mega-fires of 2017 and 2023. The plan acknowledges this as a challenge requiring a focus on the financial conditions faced by small and medium landowners, given the long time gap between investment and returns.

Michel Esquerré, president of Pymemad—the trade association of small and medium-sized wood industry players in Maule, Ñuble, Biobío, Araucanía, and Los Ríos—said they await the details but praised the announcement, stating it depoliticizes an issue that was once taboo.

The Biobío Industry Boost Plan states that work will be done on financial instruments to create favorable conditions for increasing forest plantations among small and medium landowners, in line with proper territorial planning and environmental commitments related to the 2050 carbon neutrality goal.

Alejandro Casagrande, regional president of Corma Biobío and Ñuble, also believes the announcement is positive, as it could help reverse the sector's current decline.

The Ministry of Economy, in coordination with the Ministry of Agriculture and Corfo, will be responsible for implementing this aspect of the Industrial Reactivation Plan, which relates to the timber sector. In the Biobío Region, this sector accounts for 15% of GDP, with forest exports representing over 60% of the freight transported in the area.

Source:BiobioChile.cl