New private conservation law
What is an In Rem Right of Conservation (DRC)?
The In Rem Right of Conservation law (DRC) published on June 2016 is looking to enhance private sector participation in conservation of the environmental heritage of Chile. Through this law, a new legal tool is established that allows private landowners to protect and conserve the environmental value of their properties, certain attributes or features of them. In this regard, landowners voluntarily constitute an In Rem Right of Conservation that is conferred for the benefit of a natural or legal person, whether public or private, and establish certain conditions or restrictions to the real estate in order to enhance the conservation of its environmental heritage. In addition, the DRC allows interested parties the opportunity to conserve the environmental heritage of a place, because they have a scientific or pharmacetical or any other economic interest in the natural species or resources of that specific area. One can establish an agreement with a landowner in order to commit to protecting their land in exchange for an amount agreed upon by both parties, incentivating a market of economic transactions for eco-friendly services.
How a DRC works?
A In Rem Right of Conservation must include at least one of the following:
Restriction or prohibition to allocate the real state to one or more purposes eg. real state, commercial, tourism, industrial, agricultural, forestry or other exploitative purposes.
Obligation to take responsibility for or contract services for the maintenance, cleaning, decontamination, repair, protection, administration, and rational use of the real state.
Obligation to carry out or supervise a management plan in accordance with the constitutive contract, with attention to the natural resources of the real state, within the framework of sustainable use thereof.
Land protected by DRC agreements remains private, and lands are permanently protected unless otherwise expressly agreed by the parties. Beside, agreements are drafted to be flexible, in many cases accommodating income-producing sustainable land uses like forestry, agriculture and tourism.