Brazil has opened a new fund to halt deforestation and finance sustainable development in the Amazon, seeking $21 billion from developed countries over the next 13 years. Brazil's President Luiz Inacio Lula da Silva launched the fund last week with the announcement of an initial $100 million commitment from Norway.

In a speech in Rio de Janeiro, Lula acknowledged the global significance of the Amazon rainforests and the need to reduce its deforestation. But the President has long made it clear that if the rainforest is to be saved, rich countries have to help pay the cost of depriving forest communities and businesses from its economic resources.

The Brazilian government is seeking donors in industrialised countries from among governments, aid organisations and private companies. Strategic Affairs minister Roberto Mangabeira Unger warned, however, that donor funding would not buy influence over government policy in the Amazon.

The fund will be administered by the country’s National Development Bank (BNDES). It will bankroll conservation, research, sustainable forestry activities but programmes will not be based on the payment of carbon credits for avoided deforestation, as envisaged under the emerging international REDD process.

Deforestation is calculated to be responsible for around 20 per cent of all human-related greenhouse gas emissions. After declining in recent years, the rate of forest clearing is estimated to have increased to  13,000 square kilometers over the 12 months to July this year.

The Brazilian government has stepped up policing of illegal logging and clearing in the Amazon this year, but has also given the green light to new development in the region, including the construction of two dams for hydroelectricity. This prompted the resignation of the former environment minister Marina Silva in May.

Reuters, Bloomberg 1/8/08

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