Agência Brasil explains: what is the Amazon Fund?

The US government announced a donation of US$ 500 million (R$ 2.5 billion) to the Amazon Fund, among other initiatives to combat deforestation directed at Brazil. The value proposed by President Joe Biden still needs to be approved by the US Congress. The announcement took place on April 20, during the Forum of Major Economies on Energy and Climate, after a series of bilateral meetings between the two countries over the past three months. Other nations, such as Norway and Germany, have also committed to resuming donations to the Fund, which was paralyzed during the administration of former President Jair Bolsonaro. “The Brazilian government has been doing a very serious job, which gives credibility to countries that are willing to make non-refundable donations to help Brazil build a new development model that allows us to generate jobs, income, prosperity and preserve the natural bases. ”, said the Minister of the Environment and Climate Change, Marina Silva, at a press conference after the donation was announced. In the minister’s assessment, the initiative encourages collaboration from other countries. The Fund invests in actions to combat deforestation and promote sustainability in the Amazon. Projects in other regions of the country can also be supported, as long as they comply with established guidelines. Brazilian Institute for the Environment and Renewable Natural Resources (Ibama), the Military Fire Brigade (in its forest protection programs) and state environmental agencies are among the financed institutions. Responsible for environmental monitoring by satellites, the National Institute for Space Research (INPE) is also an entity supported by the fund. In addition, state governments may have projects approved. For example, between 2011 and 2017, the Amazonian government received BRL 17.5 million for reforestation in the south of the state, a region under intense pressure from deforestation. According to Adriana Ramos, socio-environmental policy and law coordinator at the Instituto Socioambiental (Isa), the fund is the main financier of policies for the environment in the Amazon and for monitoring and controlling deforestation in all biomes. “The new donations to the Amazon Fund are extremely important, as they demonstrate the confidence of the international community with the commitments assumed by President Lula of zero deforestation by 2030”, says the researcher. Dissolution and resumption of the Fund In 2019, the then Minister of the Environment Ricardo Salles extinguished the two committees responsible for managing the Amazon Fund’s resources, making it impossible to finance projects and continue donations. The existence of these committees is a contractual condition of the donors, to prevent the money from being used for other purposes. According to data from the National Bank for Economic and Social Development (BNDES), Brazil stopped investing around BRL 3 billion in environmental actions between 2019 and 2022, an amount that remained retained in the fund after the dissolution of the steering committees. In October 2022, the Federal Supreme Court (STF) determined that the Union take the necessary measures to reactivate the Amazon Fund. At the time, the majority of ministers concluded that the extinction of the committees was unconstitutional, as it would represent a failure by the government to fulfill its duty to preserve the Amazon. Reinstituted by decree on January 1, 2023 by President Lula, the committees resumed their activities, which allowed for new funding. How it works Created in 2008, the Amazon Fund is managed by BNDES and can be seen as a kind of credit that other countries give to Brazil for the good results of its environmental policies. Despite the challenges, the country is among those that most reduced emissions of gases that cause the greenhouse effect. Between 2005 and 2016, there was a 71% reduction in deforestation rates, according to data presented by the Action Plan for the Prevention and Control of Deforestation in the Legal Amazon (PPCDAM). Due to these efforts, Brazil has qualified internationally to receive resources from foreign countries, such as the donation announced by Joe Biden. Committees The Brazilian government has autonomy to decide on the use of the money, but it depends on the decisions of two instances: the Guiding Committee of the Amazon Fund (COFA) and the Technical Committee of the Amazon Fund (CTFA). The COFA establishes the criteria for the application of resources, while the CTFA attests to the amount of carbon emissions arising from deforestation in the national territory. Annually, the Fund undergoes two audit processes, which assess the accounting and adequacy of investments to the objectives of the program. In all years, the auditors concluded that the accounts and reports presented by the BNDES were adequate. The Guiding Committee of the Amazon Fund (COFA) is made up of three blocks: federal government, state governments and civil society. Entities such as the National Confederation of Industry (CNI) and the National Confederation of Agricultural Workers (Contag) are among its members and monitor the application of resources. States must have a state plan to combat deforestation in order to have the right to vote in deliberations. This committee is also responsible for approving the Activities Report. The Technical Committee of the Amazon Fund (CTFA) is made up of scientists who meet at least once a year. Their attribution is to evaluate the methodology for calculating the area of ​​deforestation and carbon emissions adopted by the Ministry of the Environment. As participation in the CTFA is considered to be in the public interest, its members do not receive any type of remuneration. The last meeting of this committee took place in October 2018, indicating the discontinuation of work in later years. For Adriana Ramos, the Amazon Fund’s operating model offers autonomy in the application of resources, strengthening Brazilian environmental policies. “Achieving zero deforestation is an immense challenge that involves multiple strategies such as the demarcation and protection of indigenous lands, titling of quilombos and creation of conservation units, allocation of public lands, inclusion of low-carbon agriculture criteria in the Safra Plan and effectiveness of the Rural Environmental Registry, to name just a few of the actions that may be supported with funds from the Fund”, he concludes.

Agência Brasil