Banco do Brasil CEO on financing efforts to save the Amazon rainforest, as Brazil is responsible for half of its area.

Banco do Brasil CEO on financing efforts to save the Amazon rainforest, as Brazil is responsible for half of its area.

Banking on Sustainability: Brazil’s Fight to Save the Amazon

As leaders converge in New York for the 78th session of the UN General Assembly, there is a vital opportunity to come together and assess the strategies employed by governments, investors, and companies. The focus is clear – preventing the Amazon rainforest from reaching a point of no return. Scientists warn that 26% of the Amazon has already undergone severe degradation, rendering forest rehabilitation an immense challenge.

To reverse this alarming trend, it is essential to restore pastures with varying degrees of degradation so that agricultural activity doesn’t grow at the expense of the rainforest. As Brazil prepares for the next decade, investments are set to nearly double the country’s cultivated area, expanding it from 128 million acres to over 222 million acres.

Renewable sources already account for 83% of Brazil’s electricity matrix, and the country’s capacity to generate carbon credits holds immense potential. By 2030, Brazil could yield approximately 577 billion reals through carbon credits. The nation has been at the forefront of the global campaign for decarbonization, with major corporations playing a pivotal role in hastening progress.

Banco do Brasil, the oldest bank in the country, is determined to set an example of environmental responsibility not only within Brazil but across all biomes, particularly the Amazon. The institution boasts one of the most substantial portfolios of sustainable businesses globally, and its CEO, Tarciana Medeiros, is fervently leading the charge. Medeiros is the first woman president of the bank, reinforcing its commitment to inclusivity and progress.

To further their environmental protection efforts, Banco do Brasil is actively engaging with external investors and multilateral organizations. The goal is to forge alliances and secure funding for initiatives related to climate finance, renewable energy, energy efficiency, and environmental restoration. Through ongoing negotiations and leveraging the progress of operations, Medeiros aims to secure over 23 billion reals (circa $5 billion) for the Brazilian market in collaboration with global development banks by the first half of 2024.

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While Brazil takes center stage in this endeavor, it is important to acknowledge that the Amazon rainforest spans eight South American countries, including Bolivia, Guyana, Suriname, Colombia, Ecuador, Peru, and Venezuela. In August, Brazil hosted a conference aimed at bolstering regional cooperation among these Amazon nations.

Banco do Brasil is not alone in this fight. At the Amazon Summit, they joined the Green Coalition, a collaborative effort of several Brazilian banks working together to find financial solutions that support inclusive and sustainable productive activities. Through various discussions revolving around credit and investment negotiations, the aim is not just to drive economic growth but to build an economy that is compassionate and inclusive.

In line with their commitment to inclusivity, Banco do Brasil proudly supports three major human rights movements of the Global Compact Network Brazil – gender equality, inclusion of Black and indigenous populations, and fair wages. By seeking to harmonize financial returns for shareholders with social and environmental advancements, the bank aims to reduce inequality and create a more equitable society.

The task at hand is challenging, but if successful, it will have a lasting impact on both the environment and the lives of local residents. As leaders convene in New York, the world looks to Brazil, the guardians of this magnificent rainforest, to lead the way in preserving and protecting the Amazon.

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