Restoring Pastureland and Producing Biofuel in Paraguay

In the Paraguayan Chaco, where deforestation has eliminated more than 22% of tree cover since 2000, Canopy Energy and Investancia are promoting a silvopastoral model that combines livestock farming with pongamia plantations to restore soils, reduce pressure on forests, and produce biofuel. Pongamia, a nitrogen-fixing tree, improves soil fertility, provides shade that increases livestock productivity, and generates vegetable oil suitable for refining into sustainable diesel. Starting on 10,000 hectares, the project contributes to carbon sequestration, creates local jobs, and offers a profitable alternative for producers facing increasing sustainability demands in global meat and leather supply chains. As it expands, this approach promises to transform degraded lands into resilient production systems that benefit both communities and the climate.