Natural Capital

Magallanes: a relevant global player in the supply of eco-systemic services of Natural Capital

Unique environment. Magallanes constitutes a global natural laboratory of opportunity for investment in Natural Capital due to the enormous extensions of territory officially declared as protected wild areas, the existence of one of the largest freshwater reserves in the world as is Campos de Hielo Sur (Southern Ice Fields) and as Subantarctic territory.

The region also has large reserves of peat, macro-algae, landscapes, native peoples, and natural, wild and pristine wealth. Along with one of the smallest population concentrations on the continent. It is one of the most untouched territorial strongholds on the planet. The expressions of a very marked regional culture and identity deserve an innovative look focused on the preservation of habitats, which is the Natural Capital.

Innovation of the model and legal certainty. Chile has already adopted specific legislations regarding Natural Capital through the so-called “Royal Right of Conservation” in 2016 (Law No. 20,930).

The Real Right to Conservation (RRC) in Chile, enables structural arrangements to production models oriented towards economic, social and environmental sustainability and constitutes a new paradigm aimed at addressing the global risks of global warming and climate change.

Facts

Opportunities

Invest in Natural Capital in the Región de Magallanes y de la Antártica (Region of Magallanes and Chilean Antarctica), and take advantage of the comparative benefits of the eco systemic services that are being developed: 

  • Subantarctic Ecoregion, unique in the world, with a biodiversity with high levels of endemism
  • Nearly 60% of the region’s territory is dedicated to preservation, and the population density is close to 1.1 inhabitants/km2.
  • A large amount of native forests and important extensions of peatlands, offer the capacity to absorb a massive amount of equivalent carbon sequestration; with great potential for the emission of carbon credits and bonds.
  • Potential in blue carbon: Area of the planet with the highest biomass of macro algae in the fjords and Magellanic canals.
  • Eco-systemic services such as water storage have great potential in the region, which is home to the fourth largest freshwater reserve in the world.