Forest4life Paraguay Despite more than ten years of sustained economic growth (average of 4.4%), Paraguay still faces a number of economic and social challenges, which have been further exacerbated by the COVID-19 pandemic. The level of inequality remains amongst the highest on the continent, while informality and poor diversification of the economy hamper sustainable and inclusive development.Paraguayan economy has been based on extensive use of its abundant natural resources, especially land and water for hydroelectric production (which makes up to almost 100% of the energy mix). This makes Paraguay very vulnerable to climate change. Diversification and sustainable use of these resources are key to reduce vulnerability and make the country more resilient.The use of land and water for agricultural and livestock development increased pressure on the environment. Paraguay has one of the highest rates of forest loss in the world. Forest ecosystems are under increasing pressure also due to forest fires, lack of conservation management capacities, increasing large-scale illegal plantations (mainly marijuana, even within protected areas), and illegal extraction of wood/coal for energy in off-grid communities.The limited capacity and fragmentation of government institutions, and the poor dialogue with businesses, civil society and local communities, as well as the limited use of existing incentives to conserve forests and promote sustainable management practices aggravate these challenges. Any attempt to develop a successful ecosystem restoration programme must involve all relevant stakeholders, both public and private.This Action aims to preserve and restore biodiversity by fighting against deforestation and promoting sustainable forest management in three selected areas. It will focus on the following intervention areas: (i) improvement of preparedness, prevention and capacities to reduce the incidence and extent of extreme wild forest fires. (ii) Strengthening of management and conservation of forests and other key ecosystems in three selected protected areas. (iii) Promote sustainable forestry, livestock and agriculture practices, and respective value chains in buffer zones/influence areas around the three selected areas. This Action is in line with the Multi-annual Indicative Programme 2021-2027, and the Team Europe Initiative on ¿Green Alliance for Paraguay¿. It will support Paraguay in implementing its commitments under the Paris Agreement, including its National Climate Adaptation Plan and Nationally Determined Contributions.The Action will follow a landscape approach for conservation, where complementary interventions will be implemented in the three selected areas, composed by both core/protected areas, and surrounding buffer zones (both public and private). This is complemented and supported by interventions at national level to prevent/fight against forest fires, and to strengthen the mandated institutions. The intervention logic is focused on incentives rather than punishment. Landowners and private companies, holding most of the land (including within protected areas), will be involved in the implementation to ensure sustainability and better compliance of existing rules and laws.The duration of this Action will be five years and the budget 12 million EURO. It will be implemented through technical assistance (mainly to public authorities), grants to civil society organizations for the management of protected areas, and a contribution agreement with a pillar assessed organisation (possibly an EU Member State Agency).