Paralyzed for the inclusion of new projects since 2019, the Amazon Fund continued to make payments normally for already approved initiatives. Now, more than three years later and with several contracts coming to an end, important conservation and sustainable development actions have an uncertain future.
The inspection itself is threatened. Since 2016, Ibama has depended on resources from the fund to carry out its actions in the Amazon. The money to pay for the rent and operation of the pickup trucks and helicopters used to go to the field, which comes from a project approved in 2018, is about to run out.
The agency has already received most of the R$ 140.26 million provided by the Amazon Fund. The last installment, of around R$ 11.6 million, should be paid soon. Without being able to compete for a new round of funding, the institute will have to bear the costs of vehicles, which are essential to control deforestation actions.
In a note, IBAMA stated that the end of resources will not affect operations against deforestation.
“Ibama clarifies that there is no risk of paralysis, since the contracts of Dipro (Directorate of Environmental Protection) have coverage of the institute’s own revenue source”, says the agency.
Specialists, however, disagree with the assessment and recall that the forecast of resources in the budget does not guarantee that the money will be effectively spent, especially with the necessary speed.
Former president of Ibama and responsible for signing the contract with the Amazon Fund, Suely Araújo considers that inspection actions in the Legal Amazon, which are already far from adequate, should be even more affected.
“When I joined Ibama, in June 2016, we had a budget, but we didn’t have the funds. public policies of the Climate Observatory.
“The problem is that the government was in a huge revenue crisis, the contract for the trucks had been delayed for many months. The only reason there was no stoppage was because the resources from the Amazon Fund arrived.”
Urbanist and lawyer, with a doctorate in political science, Suely Araújo believes that the mechanisms for monitoring the fund’s resources were quite robust, being a reference for other countries.
Created in 2008, the Amazon Fund finances projects that help forest preservation and sustainable development. The money does not come from the Brazilian government, but from voluntary contributions from third parties.
So far, Norway has been responsible for 93.8% of the funds raised, while Germany has contributed 5.7% and Petrobras 0.5%.
In June, Norway’s Minister of Climate and Environment, Espen Barth Eide, told Reuters that the country could resume payment if President Jair Bolsonaro (PL) is not re-elected.
Despite the success of the initiative, the Bolsonaro government decided, in 2019, to extinguish the two governance bodies of the fund: Cofa (Advisory Committee) and CTFA (Technical Committee). As the release of the money depends on the maintenance of the structure agreed with the financiers, the resources were paralyzed.
The change was criticized by Norway and Germany, who said they were satisfied with the model for applying the contributions. The two countries announced the freezing of new transfers.
An audit by the CGU (General Controllership of the Union) indicated that the extinction of the committees “disrespected the good practices of public governance, generating negative impacts for environmental policies”. The same report also reveals that the fund has R$ 3.2 billion at rest.
The project Valuing Amazonian Socio-Productive Chains, by the ICV (Instituto Centro de Vida), is one of the projects that are coming to an end and will not be able to compete to renew the R$ 17 million approved.
The initiative promotes and supports sustainable family farming in Mato Grosso, focusing on municipalities that faced problems with deforestation. The idea is to act in key sectors, helping from the production stage to one of the major bottlenecks, which is marketing.
Coordinator of the ICV’s conservation incentive program, Renato Farias says that the Amazon Fund has made it possible to scale projects and support families in an unprecedented way, guaranteeing supplies to the regions even in times of crisis.
“It was very clear to us the strength of local production in times of crisis, as in the truck drivers’ strike, which stopped distribution at a given moment, in addition to the pandemic”, he says.
“The fund’s interruption could not have come at a worse time, precisely because of the local demand and the demands that our communities have to achieve good productive arrangements in these difficult times”, he adds.
Winner of the Innovation Award for Sustainable Food and Agriculture from the UN (United Nations) in 2019, the Origins of Brazil project, conceived by Imaflora (Instituto de Manejo e Certificação Florestal e Agrícola) and ISA (Instituto Socioambiental), will receive soon the last installment of the R$ 17.37 million approved by the Amazon Fund.
The initiative supports the establishment of a sustainable production and fair trade network, connecting indigenous peoples and companies. The project covers 33 protected areas and more than 50 million hectares of land.
“The project shows that it is possible to generate business with innovation, involving the business sector that is connected with responsibility”, says Patrícia Cota Gomes, deputy executive director of Imaflora.
The executive says that, since news about the devastation of the Amazon intensified, there has been a large movement of companies that have sought certification of the Origins of Brazil network as a way of supporting sustainable activities in the forest. “The business sector is eager for solutions”, he concludes.
What is the Amazon Fund and how does it work
Which is?
Created in 2008, the Amazon Fund aims to finance projects that help preserve the forest and promote its sustainable development.
Who pays?
Contributions are voluntary. So far, Norway has accounted for 93.8% of the funds raised. Germany contributed 5.7% of the money and Petrobras 0.5%.
Why is it frozen?
In 2019, the government of President Jair Bolsonaro (PL) revoked two essential bodies for the distribution of funding.
The objective was to reduce the participation of civil society, in addition to changing the rules for granting resources. Amid the rise in deforestation in the Amazon and concerns about the positions adopted by Brazilian authorities, Norway and Germany announced the freezing of transfers.
What is the available funding?
A recent report by the CGU (Comptroller General of the Union) indicates that, until December 2021, the fund had almost R$ 3.2 billion stopped. The audit also indicates that the government squandered the potential to raise up to $20 billion for the fund.
