Chile has special reforestation promotion instruments in place. These are mainly focused on landowners with less of a role in planting forests than large industry players.

An overview of the Chilean forest industry shows that:

• It is the country’s second-largest exporter. Revenues in 2006 stood at US$3.8 billion, up 11.6 percent over 2005.
• Rural properties owned by small farmers and native communities account for some 2.5 million hectares of cleared, mostly severely eroded and degraded land where forestry is eminently advisable.
• CDM projects with a focus on rural poverty alleviation would contribute greatly to the sustainable development challenge.
• It is Chilean policy to regulate forest activities and promote reforestation, especially among small owners of degraded land.

Feasible Chile projects include:

• Reforestation of land owned by small farmers and native communities.
• Reforestation of land owned by both large industry players and small landowners.