On October 27th, 2024, during New York Climate Week, the Science Panel for the Amazon (SPA) and IDB Invest co-hosted an impactful event focused on Climate Finance for Amazon Restoration and Sustainable Development. This gathering of distinguished experts was pivotal in exploring the complex interplay between climate finance, restoration efforts, and sustainable development within the Amazon rainforest.
As the world grapples with the pressing challenges of climate change, the Amazon rainforest stands at a critical crossroads. Emma Torres, SPA Strategic Coordinator, opened the session with a compelling statement, setting the tone for the discussions to follow. Her insights underscored the urgency of the issues at hand and the collaborative efforts needed to address them. Jaime Garcia Alba, Director of Strategy and Knowledge at IDB Invest, then took the stage, emphasizing the importance of unity in tackling the multifaceted challenges facing the Amazon.
The keynote address by Ambassador André Correa do Lago, Secretary for Climate and Environment of the Brazilian Ministry of External Affairs, framed the stakes involved in organizing the UN Climate Change Conference COP30 in Brazil. He articulated the urgency of addressing deforestation, which is Brazil’s number one source of emissions. However, he emphasized that stopping deforestation alone will not be enough to solve the climate crisis, as it only accounts for around 10% of global emissions. The real challenge, he stressed, lies in tackling fossil fuel emissions, the main driver of global climate change. Even with zero deforestation, the Amazon will continue to suffer if the world does not address fossil fuels. Still, Ambassador do Lago expressed optimism, citing the Declaration of Belem, which, thanks to the efforts of the Science Panel for the Amazon (SPA), includes critical tipping points. He also highlighted the United for Our Forests initiative, which seeks to unite 67 tropical forest nations around shared interests. His message was clear: a collective voice from developing countries is essential in shaping the future of climate financing, and the upcoming COP30 must lead the way in both forest conservation and the global shift away from fossil fuels.
Following the keynote, members of the Science Panel for the Amazon (SPA) offered their insights through impactful interventions. Roxana Barrantes, SPA Lead Author, presented key findings from the Policy Brief A New Infrastructure for the Amazon, emphasizing the need for a new paradigm in Amazonian infrastructure. She called for a focus on local populations’ needs while safeguarding the environment, including rejecting large dam projects in favor of small-scale solutions that ensure universal access to energy and leveraging digital connectivity to enhance social and economic integration.
Ricardo Abramovay, SPA Lead Author, followed, highlighting the untapped potential of socio-bioeconomy in the Amazon. He emphasized the importance of the G20 Initiative on Bioeconomy (GIB), which he believes provides a clear direction for future initiatives, aligning with the goals of Chapter 30 of the SPA’s Amazon Assessment Report 2021. He pointed out the financing gap for bioeconomy compared to agriculture, advocating for a focus on diversity in forest conservation, regeneration, and non-timber products. He also advocated for a bioeconomy that truly values the rich biological and cultural diversity of the Amazon, instead of promoting monocultures. Abramovay stressed the need for a new paradigm prioritizing sustainability over fossil fuels, with two key areas of focus: transforming animal production practices and enhancing urban agriculture in tree-poor Amazonian cities. Ultimately, he underscored that empowering local communities is essential for driving these changes, as outlined in the G20 recommendations.
Catarina Jakovac, SPA Lead Author, highlighted the alarming state of the Amazon, where around 20% of native forests have been deforested, risking the loss of an additional six million hectares by 2030. She stressed that restoration efforts must prioritize halting deforestation to be effective. Jakovac advocated for shifting from “arcs of deforestation” to “arcs of restoration” through diverse strategies, including natural regeneration and active planting. She emphasized engaging local stakeholders, promoting restoration supply and value chain, adopting adaptive management, and recognizing natural forest regeneration as a legitimate and cost-effective strategy that the finance sector should invest in while ensuring the conservation of standing forests, which are vital for biodiversity.
Next, Jaime Garcia Alba kicked off the panel discussion, which featured esteemed panelists, including Valmir Ortega, CFO of Belterra; Marcelo Medeiros, Chairman of re.green; Ilona Szabó, Co-Founder of the Igarapé Institute; Hervé Duteil, Chief Sustainability Officer for the Americas at BNP Paribas; and James Mulligan, Head of Carbon Neutralization Science & Strategy at Amazon. Their diverse perspectives enriched the conversation, calling for innovative financial mechanisms that recognize the intrinsic value of nature.
Ilona Szabó, addressed the critical roadblocks and opportunities for Amazonian development, emphasizing the urgent need to restore degraded lands in the region. She highlighted that the current urgency presents significant opportunities for the private sector, provided that steps are taken to de-risk investments. Szabó discussed the importance of having proper land titles, enforcing the rule of law, assisting local governments, pushing them for better and more adequate policies, and establishing strong relationships with local communities to facilitate investment. She argued for a joint approach to addressing the risks of illegal activities while advocating for frameworks that enable blended finance, which would encourage the private and finance sectors to invest in restoration initiatives, as well as other innovative financial instruments. Szabó stressed the need for collective, global conversations on these issues, underscoring the moral imperative to share risks and foster collaboration to mobilize the necessary capital for sustainable development in the Amazon.
Valmir Ortega emphasized the urgent need for tailored strategies to restore millions of hectares of degraded land, highlighting that a one-size-fits-all approach is ineffective. He noted that restoring these areas requires diverse business models and multiple funding sources. He pointed out that Belterra focuses mostly on small and medium producers, who face challenges due to limited credit and technical assistance. These producers need assistance to diversify food production, particularly through family farming and agroforestry systems. Another important initiative is Rio Capim, which aims to intensify silvopastoral systems dedicated to restoring degraded lands. Ortega underscored the importance of public subsidies, such as those provided by programs like Plano Safra, which traditionally support conventional agriculture but could be adapted to promote sustainable practices like agroforestry and regenerative agriculture. This shift would create the necessary conditions for increased private sector involvement in restoration efforts.
Marcelo Medeiros shared an ambitious vision to restore one million hectares of forest, highlighting the critical role of biodiversity and partnerships with local producers. He explained that setting this goal stemmed from a desire to create a significant impact—one that could even be seen from the moon. With approximately 60 million hectares of degraded land available in Brazil, he noted that success stories already existed, confirming that large-scale restoration was achievable. By acquiring Bioflora, Brazil’s largest nursery, they aimed to actively collect seeds and replicate the rich diversity of tropical forests. With strong collaboration from local producers, he emphasized that restoration was feasible, especially given Brazil’s advanced agricultural capabilities.
James Mulligan underscored that effective solutions for the Amazon require more than just technology; they demand innovation and a strong commitment to action. He asserted that halting tropical deforestation should be the top priority, followed by restoring lost forests. Mulligan co-founded the LEAF Coalition, which channels funds into conservation initiatives, including a recent $180 million agreement with the government of Pará (Brazil). He emphasized that public sector mechanisms are vital, as they provide resources for local communities to thrive while protecting forests. By promoting large-scale restoration and prioritizing innovative financing, they can help Brazil achieve its climate goals.
Hervé Duteil emphasized the importance of shifting the focus from scaling to multiplying financial flows into the Amazon in order to meet the development needs in the region. He noted that existing efforts are fragmented, highlighting the need for uniformity in financing mechanisms. Duteil pointed out that data is crucial for measuring progress, advocating for a price on nature that goes beyond carbon and biodiversity credits. He also proposed using outcome bonds as a means to transfer risk, where banks issue bonds tied to successful environmental outcomes. Lastly, he stressed the necessity of collective action, urging banks to unite around a no-deforestation commitment to foster confidence and encourage investment in reliable initiatives.
The discussion concluded with panelists and attendees offering diverse insights. Jaime Garcia Alba discussed Amazon Bonds with the World Bank as a potential tool for restoration financing. Avecita Chicchón from the Moore Foundation and SPA’s Strategic Committee urged a critical look at regional integration routes in South America, stressing balanced development that safeguards the Amazon. Olga Puntus from JP Morgan raised concerns about accountability in funding allocation. Roberto Waack, also from SPA’s Strategic Committee and Instituto Arapyaú, called for market development for carbon credits and non-timber products. Ilona Szabó emphasized the need for environmentally responsible infrastructure, noting its impact on local communities.
Emma Torres concluded the event by emphasizing the critical role of COP30 in advancing the conservation of tropical rainforests. She highlighted the Amazon’s complexity, diversity and the need for diverse approaches to address its challenges effectively. Notably, she acknowledged the finance industry’s proactive development of new instruments to support these initiatives, indicating a promising trend in cross-sector collaboration. Emma expressed enthusiasm for ongoing discussions with the InterAmerican Development Bank and the World Bank to integrate analysis and policy relevant recommendations from the Science Panel for the Amazon into broader financial strategies. She urged for a continued dialogue on tropical forests as COP30 approaches, emphasizing the importance of experimenting with innovative financial tools and business models.
The event underscored the urgent need to halt deforestation and shift to large-scale Amazon restoration, with strategies centered on local engagement and biodiversity conservation. A strong call was made for innovative financial mechanisms, including Amazon Bonds, bioeconomy investments, and outcome-based financing. The socio-bioeconomy was identified as key to sustainable development, promoting forest conservation and non-timber products. Ensuring accountability in climate finance is crucial to achieving tangible outcomes for both communities and ecosystems. Panelists also stressed rethinking infrastructure to support local populations while safeguarding the environment. As COP30 nears, collaborative action and cross-sector partnerships are essential to embed these efforts into global climate strategies, securing Amazon’s future.