Norway Pays One Billion Dollar to Brazil for Reduced Deforestation in the Amazon

Norwegian Minister of Climate and Environment Tine Sundtoft has announced that before the global climate change summit in Paris in December, Norway will have fulfilled its 2008-commitment to contribute one billion USD to the Brazilian Amazon Fund.

“The partnership between Brazil and Norway through the Amazon Fund shows intensified support for one of most impressive climate change mitigation actions of the past decades,” says United Nations Secretary General Ban Ki-moon.

In 2008, Norway made a commitment to pay up to 1 billion USD to the Amazon Fund in the period of 2008-2015 if Brazil would reduce deforestation in the Amazon – the world’s largest rainforest. During the last decade, Brazil has reduced deforestation in its part of the Amazon by over 75 percent.

The deforestation figures for the 2014 forest year indicates a reduction in deforestation of almost 75 per cent compared to the Amazon Fund’s original reference level (average deforestation 1996-2005, 19,559 km2).

The Amazon Fund was launched by Brazil in 2008. The Fund is open for contributions from countries, private individuals and businesses. Norway was the first contributor to the fund. Since 2008, Norway has paid a total of more than 900 million USD to the Amazon Fund based on the results delivered by Brazil. The fund is administered by the Brazilian Development Bank, BNDES, which is the world’s second largest development bank.

All the projects supported by the Amazon Fund are a part of Brazil’s general plan to reduce deforestation, while also promoting sustainable development in the Amazon region. 75 projects worth 546 million USD had been approved as of 31 August 2015.

“The Amazon Fund has been an important instrument for promoting innovative policies, measures and actions in order to achieve real sustainable development, and for changing the economic logic that is behind the destruction of forests, in the Amazon, and even in other regions. Strengthening the strategies that promote the sustainable use of natural resources, combined with best practices in productive activities in forest areas, which has been promoted by the Amazon Fund with the fundamental support of the Norwegian Government, is of the utmost importance.” says Carlos Rittl, Executive Secreatry of the Brazilian Climate Observatory.