What can we learn from the Brazilian Amazon Fund?
Summary of public seminar in Oslo, Norway, 28.05.10
On the day following the international Oslo Climate and Forest Conference, Rainforest Foundation Norway (RFN) and Instituto Socioambiental (ISA) of Brazil convened a seminar to discuss the current status and challenges facing the Brazilian Amazon Fund. The seminar was the first public event where representatives from different sectors in Brazil and Norway had the opportunity to meet and discuss the Amazon Fund experiences.
The seminar attracted some 70 participants from universities, research institutions, Norwegian and international environmental organizations, indigenous associations, representatives from the Norwegian and Brazilian government, including the Brazilian Ambassador in Norway, H.E. Sérgio Eduardo Moreira Lima. Interest was such that the audience remained to follow the debate 45 minutes beyond schedule.
Civil society involvement
The seminar started by a short introduction by Torkjell Leira (RFN), emphasizing the important role of civil society in the processes in both Brazil and Norway. In Brazil, a key initiative was the so-called Pact for Zero Deforestation that created a political momentum for establishing concrete reduction targets and creating a Fund within the BNDES. In Norway, the civil society had a similar role in proposing and lobbying for a multibillion dollar funding commitment from the Norwegian Government.
The four invited experts had 10 minutes presentations each, in the following sequence: Lars Løvold (RFN), Tasso Azevedo (consultant, representing the Brazilian Ministry of Environment - MMA), Inge Nordang (Norwegian Embassy in Brazil), Adriana Ramos (ISA). This was followed by a 70 minute session of questions, answers and comments.
The Amazon Fund: An innovative initiative
All the experts praised the Amazon Fund for being an innovative and ambitious initiative that could serve as a model for other REDD mechanisms. These five aspects were underlined as particularly important:
- a results based approach, with compensation to Brazil only after proven emission reductions
- no carbon credits being emitted to investors in the Fund
- independent monitoring and control of results
- modest estimates: 100 ton carbon per hectare and USD 5 per ton CO₂ reduced
- participation of civil society and indigenous peoples in the Fund's governing body (COFA)
Mr. Inge Nordang from the Norwegian Embassy in Brazil underlined the following unique aspects of the Brazilian experience: the existence of a bank like BNDES, the INPE/PRODES monitoring system and a strong civil society with freedom to speak. These aspects are very positive for the whole Brazilian process, but not necessarily present in other tropical forest countries.
Concerns and challenges
A number of challenges and concerns were raised during the seminar, both from the invited experts and the audience.
Mr. Lars Løvold (RFN) mentioned slow implementation as a main concern. He acknowledged that building a new structure takes time, but pointed out that the slow pace of project approval could become a challenge for the Fund's legitimacy in Norway and Brazil. He further mentioned difficult access for small projects and local actors as a big challenge. His last concern was regarding the lack of transparency. "We know the steering committee (COFA) established guidelines and criteria in 2008. But as far as we know, there is no way to check if these criteria are being followed by the BNDES. This means the criteria can be followed 100% or 0 %. We simply do not know. Our partners in Brazil have described the internal process for analyzing applications as a black hole."
Mr. Tasso Azevedo, consultant for the Brazilian Ministry of Environment, agreed that there was a need for more transparency regarding project analysis. He further explained that access for small projects and actors is a priority and is being studied within the steering committee, COFA.
Mrs. Adriana Ramos (ISA) explained her experience as the NGO representative in COFA. Her main concern was the need for clear rules for all applicants to the Fund.
Lack of coherence
Several questions from the audience focused on a lack of internal coherence within BNDES and Brazilian Government policy regarding the Amazon. As the host of the Amazon Fund, BNDES receives international funding to halt deforestation in the Amazon. But at the same time, the bank finances a series of big enterprises and projects in the Amazon that are major drivers of deforestation. The slaughterhouse industry, infrastructure projects like paving of highways and huge hydro electrical projects like Belo Monte were mentioned.
Read the presentations as pdfs:
Norwegian Support for Fundo Amazonia By Inge Norang, Norwegian Embassy in Brazil
What can we learn from the Brazilian Amazon Fund? Introduction by Torkjell Leira, RFN