STRATEGIES FOR TRANSFORMING LANDSCAPES IN MEXICO

The strategy focuses on improving the competitive business environment by capitalizing on the projected growth of sustainable value chains and the initiative of the Mexican private sector to self-regulate in terms of transparency and integrity practices. USAID's approach under this objective will be scaled by the private sector, amplifying one of Mexico's comparative strengths. The vision is that an improved competitive business environment—brought about through better managed natural capital, increased market opportunities, and greater transparency and integrity—will advance and expand the U.S.-Mexico strategic partnership, resulting in broader prosperity for both countries. The report focuses on the challenges and recommendations to achieve these objectives in three Mexican landscapes: Campeche / Quintana Roo (Calakmul), Chiapas (Sierra Madre and Lacandona), and Oaxaca (Sierra Sur). Deforestation, forest degradation, biodiversity loss, and climate risks threaten Mexico's competitive business climate. Conservation, restoration, and even regeneration are necessary to protect communities' livelihoods and reduce risks to businesses' supply chains, reputations, and ability to attract investment. According to the Food and Agriculture Organization (FAO) and analysis of national-level information sources, the deforestation rate in Mexico decreased to an average rate of 0.2% between 2010 and 2015, representing a net loss of approximately 91,700 hectares per year. However, the decrease in the national rate does not adequately represent regional heterogeneity. Each forest ecosystem in Mexico is unique, with deforestation dynamics, degradation processes, human activities, and natural disasters varying in each and their dynamics changing over time. Forest degradation is a complex process, with public policies and market forces directly and indirectly contributing to deforestation and land degradation. The costs of deforestation and forest degradation include the loss of economic opportunities, ecosystem functioning, biodiversity, and environmental services. Many activities that cause deforestation and forest degradation also generate significant greenhouse gas (GHG) emissions. The Agriculture, Forestry, and other Land Use (AFOLU) sector contributed 14.59% of total emissions in Mexico in 2015, with emissions from livestock contributing 69% and emissions from other land uses contributing the remaining 31%. There is some consensus among scientists regarding the causes of forest degradation. In the south and southeast of Mexico, forest degradation is related to land-use change, with a transition to agricultural uses, tourist development, and urban and industrial uses that generate higher profits. While there are policies, laws, and regulations in place to reduce deforestation, there are challenges in implementation and coordination with the sectors that have the greatest impact on land-use change. A landscape approach is necessary to reduce deforestation and greenhouse gas emissions in specific landscapes in Mexico. This approach involves collaboration with a wide array of stakeholders, including local communities, to balance competing land use demands in a way that is best for human well-being and the environment. According to the Global Landscapes Forum, a landscape approach can provide numerous benefits, including improved livelihoods, increased biodiversity, and enhanced ecosystem services. The report highlights the importance of community-led initiatives in promoting sustainable landscape management. For example, the Yucatan Peninsula, Oaxaca, and Chiapas have been part of REDD+, an initiative of the U.N. Framework Convention on Climate Change focused on reducing emissions from deforestation and degradation. These regions have been engaged in early activities, providing an excellent foundation for designing and implementing sustainable landscape management activities. Capacity exists at the community and subnational level to continue implementing activities to stop deforestation and ecosystem degradation and promote sustainable practices. The report concludes that a landscape approach is essential for reducing deforestation and greenhouse gas emissions in Mexico. This approach requires collaboration with a wide array of stakeholders, including local communities, to balance competing land use demands in a way that is best for human well-being and the environment. By promoting sustainable landscape management, Mexico can protect its natural capital, increase market opportunities, and enhance transparency and integrity, ultimately advancing and expanding the U.S.-Mexico strategic partnership.