Amazon Fund has R$3 billion to use in new projects, says BNDES

The Amazon Fund has R$3 billion in cash to finance new projects. The number was announced this Thursday, the 1st, by the National Bank for Economic and Social Development (BNDES), which manages the fund, and by the Ministry of Environment and Climate Change. In 2023 alone, the fund received R$726 million in donations from foreign countries, the amount is one of the largest since it was created in 2008.

Still according to the balance released this Thursday, if all the projects filed to request resources from the fund and which are still under analysis are approved, there will be a demand for R$2.2 billion of the R$3 billion currently available. Created in 2008, during President Lula's second term, the Amazon Fund raises foreign resources to finance actions to protect the Amazon Forest. Forest preservation is one of the Lula government's main agendas abroad.

Donations made in 2023:

– United Kingdom: R$497 million

– Germany: R$186 million

– Switzerland: R$28 million

– United States: R$15 million

In addition to the donations already received, the Amazon Fund is awaiting the transfer of R$3.1 billion announced by donors, but which has not yet been transferred. Among the countries with resources to be transferred are the United States, the European Union, Denmark, the United Kingdom and Norway.

“Donations from countries are always complex, they always take a long time, because they have to be processed in the countries. In reality, what is clear is that countries are working to make it viable”, stated the executive secretary of the Ministry of Environment and Climate Change, João Paulo Capobianco.

The Amazon Fund was resumed by the government of President Luiz Inácio Lula da Silva last year, after being suspended by the government of former President Jair Bolsonaro. After failing to approve new projects during this period, the Amazon Fund last year financed R$1.3 billion in resources for projects and specific public calls. The value was the highest since the creation of the mechanism. Before that, the largest amount had been used in 2017, when R$693 million was used.

“It is practically 4 and a half times the historical average of the Amazon Fund. This is precisely due to the fact that we built a strategy that allowed us to make this necessary leap”, said BNDES Socio-Environmental Director, Tereza Campello.

Even with record funding, in the month of October Amazonas had 3,858 fires, the highest number for the month since 1998, when the historical series began by the National Institute for Space Research (Inpe), an agency of the Ministry of Science and Technology. In 2023, Amazonians suffered the biggest drought in 121 years. River transport was interrupted and clouds of smoke filled Manaus, caused by record fires in the state.

The worsening of the drought in the 2nd semester due to El Niño was already projected by the international scientific community. The government, however, was unable to structure planning to address the problem throughout the year. It also motivates criticism about the need to better prepare the country for extreme weather events.

Pressured by the environmental crisis, the Amazon Fund Steering Committee approved the expansion of resources available for the nine States of the Legal Amazon to combat forest fires and illegal burning. The total committed went from R$315 million to R$405 million.

Resources for BR-319

The authorities were also questioned regarding a statement made by the Minister of Transport, Renan Filho, that he intended to raise funds from the Amazon Fund to finance works on the BR-319 highway, which crosses the Amazon Forest. The work is contested by environmentalists because of possible harmful impacts on the environment. The director stated, however, that in her understanding, the fund's resources cannot be used in this type of initiative.

“In our assessment, it is inadequate even for the profile of the Amazon Fund’s resources,” he said. “These are actions either to combat deforestation, or to restore forests, or to generate employment and sustainable income to keep the forest standing. So, it would not be appropriate and necessary.”