Tag Archives: cattle ranching Amazon

The $4 Trillion Blackmail: The Amazon is Ours not Brazil’s

More than two dozen financial institutions around the world are demanding the Brazilian government rein in surging deforestation, which they said has created “widespread uncertainty about the conditions for investing in or providing financial services to Brazil”. The call for action, delivered in a letter to the Brazilian government on June 23, 2020, comes as concerns grow that investors may begin to divest from Latin America’s largest economy if Jair Bolsonaro’s administration fails to curb environmental destruction. “As financial institutions, who have a fiduciary duty to act in the best long-term interests of our beneficiaries, we recognise the crucial role that tropical forests play in tackling climate change, protecting biodiversity and ensuring ecosystem services,” said the letter, signed by 29 financial institutions managing more than $3.7tn in total assets.

“Considering increasing deforestation rates in Brazil, we are concerned that companies exposed to potential deforestation in their Brazilian operations and supply chains will face increasing difficulty accessing international markets. Brazilian sovereign bonds are also likely to be deemed high risk if deforestation continues.” Deforestation in the Amazon rainforest has surged in Brazil since the election of Mr Bolsonaro, a rightwing former army captain, who supports opening the protected lands to commercial activity. In the first four months of 2020, an area twice the size of New York City was razed as illegal loggers and wildcat gold miners

Investors said they are particularly concerned about Brazil’s meatpacking industry, which risks being shut out of international markets over its alleged role in deforestation. Brazil’s JBS has been repeatedly accused by environmentalists of buying cows from deforested lands in the Amazon. In May 2020 more than 40 European companies, including Tesco and Marks and Spencer, warned they would boycott Brazilian products if the government did not act on deforestation. 

Excerpts from Investors warn Brazil to stop Amazon destruction, FT, June 23, 2020

Policing the Amazon Jungle

The small town of Apui sits at the new frontline of Brazil’s fight against advancing deforestation…  The home of 21,000 people in southern Amazonas state was long protected by its remote location from illegal loggers, ranchers and farmers who clear the forest.  Now those who would destroy the jungle are moving in from bordering states, following the Transamazon Highway, which is little more than a red-dirt track in this part of the rainforest.

First come the loggers, who illegally extract valued lumber sold in far-off cities. The cattle ranchers follow, burning the forest to clear land and plant green pasture that rapidly grows in the tropical heat and rain. After the pasture is worn out, soy farmers arrive, planting grain on immense tracts of land…

Roughly 7,989 square kilometres (3,085 square miles) of forest were destroyed in 2016, a 29 percent increase from the previous year and up from a low of 4,571 square kilometers in 2012, according to the PRODES satellite monitoring system.

Then there are the fires.  Apui ranked first in the country for forest fires in the first week of August 2017, according to the ministry.

At their best the environmental agents can slow but not stop the destruction. They raid illegal logging camps, levy large fines that are rarely collected and confiscate chainsaws to temporarily impede the cutting.  Costa acknowledges that the roughly 1,300 environmental field agents who police a jungle area the size of western Europe have a difficult task, at the very least.

Excerpt from Brazil’s agents of the Amazon fighting loggers, fires to stop deforestation, Reuters, Aug. 20, 2017