Amazon Fund, Phase III

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The Amazon Fund (Fundo Amazonia, FA) was set up in 2008 by the Brazilian government and the Brazilian development bank BNDES (Banco de Desenvolvimento Económico e Social). The fund is intended to help implement the emission reduction targets set out in Brazil's national climate policy, which include a reduction in annual deforestation in the Amazon (Amazonia Legal) by 80% between 2005 and 2020. The federal action plan PPCDAm (Plano de Ação para a Prevenção e Controle do Desmatamento na Amazónia Legal) has made a significant contribution to the successes achieved to date in combating deforestation. The use of the FA's funds is also based on its guidelines and subject areas of monitoring and control, land use planning and the promotion of sustainable production. The financing of EUR 35 million here compensates for emissions saved for the 2017 forest year. To calculate the compensation potential, the actual deforestation from 2017 is compared with the average annual deforestation for the years 2006-2015 (baseline). The average deforestation was 8141 km2, while the deforestation measured for the 2017 forest year was 6947 km2. The value of 5 USD/t CO2 agreed with the Brazilian Ministry of the Environment (MMA) therefore enables a calculated payout potential of a total of 289,604,700 USD for the forest year. The objectives and measures of the financing proposed here have not changed compared to the original project. The implementation structure of the FA, with BNDES as fund manager and the COFA (Comité Orientador do Fundo Amazonia) as steering body, will be retained.