NORWAY DONATES US4 110 MILLION TO THE AMAZON FUND


Environmental Panorama
International
April of 2009


Norway donated US$ 110 million to the Brazilian government's Amazon Fund on March 25. This is the first donation to be received by the Fund. Germany has already committed to donating another US$ 18 million. The money will go towards sustainable development and conservation initiatives in the Amazon Forest, in a new effort to halt deforestation and environmental degradation in the region.

By June, Brazil´s Development Bank (Banco Nacional de Desenvolvimento Econômico e Social/BNDES), in charge of fund management, will have started receiving proposal letters from NGOs, companies and federal, municipal or state governments interested in carrying out conservation initiatives focused on reducing CO2 emissions. All initiatives must be in accordance with the Brazilian government's Action Plan for the Prevention and Control the Deforestation of the Legal Amazon (Plano de Prevenção de Combate ao Desmatamento na Amazônia/PPCDAM) and Sustainable Amazon Plan (PAS). Funds applied will not be reimbursed, however - except in cases in which pré-established goals are provenly not reached. Fund application will be supervised during all phases of project implementation.

Proposals will be analyzed by the Bank and, if approved, returned to proponents for detailing of technical and managerial aspects. Examples of projects eligible for grants from the Fund are management of forests and protected areas, ecological and economic zoning, conservation and sustainable use, monitoring and payment for environmental services.

The Brazilian Ministry of the Environment (MMA) participates in the Fund through a Technical Committee. MMA projects will be submitted to BNDES analysis in equal terms and conditions. Rules for approval of proposals were defined when the Fund was created, and viability analysis is carried out by the bank.

Fundraising is based on reductions in deforestation: whenever Brazil proves it has reduced degraded areas, implying in a reduction of CO2 emissions, it is eligible for carbon credits, according to international prices. Thus, the 200 million tonnes of CO2 corresponding to the 1996-2005 period mean a donation of up to U$ 1 billion; the remittance of US$ 128 million were guaranteed this week.
According to Brazilian minister of the Environment Carlos Minc, three other countries are willing to donate to the Fund - but he would rather not say who, yet, "so as not to influence negotations".

Minc assured Norwegian ambassadress Turid Euzebio - who signed the donation agreement on behalf of Norway - that "every cent will be applied in defense of the forest and in defense of the Earth".

The minister said the Norwegian donation was both generous and an example to other countries - recalling that Norway has always sought to invest in initiatives focused on indigenous peoples and the environment in foreign countries.

According to ambassadress Euzebio, the Congo and Tanzania, amongst others, have also received funds from Norway for the conservation of ther tropical rainforests.

BNDES president Luciano Coutinho, on the other hand, saod the bank will launch a site for the Amazon Fund, so as to afford "transparency" to anything which refers to Amazon Fund fundraising and application.

Combatting deforestation - The Amazon Fund is an unprecedented mechanism presented by Brazil at the United Nations Climate Change Conference held in Bali in 2008. Donations can be made by governments, companies and individuals who are committed to reducing greenhouse gas emissions from deforestation and forest degradation.

It is the first time the struggle against deforestation includes a series of encompassing initiatives for promoting sustainable development in the Amazon.

Annual deforestation indexes used for calculating reductions in emissions will be compared, every year, to average 10-year deforestation indexes.

+ More

Macrozoning of the Amazon will be ready by end of the year, says Minc

Brazilian minister of the Environment Carlos Minc said, on March 26, that the Ministry of the Environment (MMA) will conclude the ecological and economic macrozoning (ZEE) of the Amazon until the end of this year. According to the minister, this is Brazil's most important instrument in establishing a frontier of legality in the region and in planning its sustainable development.

During a meeting between the Consórcio ZEE Brasil (made up of institutions in charge of carrying out zoning) with the region's state government representatives, Minc requested that a special effort be made to complete state ZEEs and to ellaborate macrozoning. The latter's challenge is to bring together regional documents whilst conciliating interests, dissolving conflicts and helping build national and regional strategies.

"We are going to complete the ecological and economic macrozoning of the Amazon by the end of this year", said the minister. "This will lead the Amazon to a new stage of development and dignity for the 25 million people who live there and are entitled to comfort, to feeding their families and to being exempt from the rôle of forest destruction and global warming villains."

The seminar was summoned for evaluation of each of the Amazon states' status quo as to their ZEEs; for identifying obstacles and difficulties; and for establishing how the latter should be effectively and swiftly overcome.

The state of Maranhão, for example, will receive technical and financial support so as to ellaborate its ZEE. Amapá's process is underway; and Tocantins already has its agro-ecological zoning. Pará's macrozoning, on the other hand, is ready - but the state prefers to carry out other more specific ZEEs. The states of Rondônia, Acre and Roraima have completed their ZEEs and are using them; Mato Grosso and Amazonas await ruling by Brazilian Parliament.

According to Roberto Vizentin, director of the Ministry's Department of Ecological and Economic Zoning (Departamento de Zoneamento Territorial/MMA), it is possible to conclude macrozoning of the Amazon even before state zoning is complete.

"It can be done, although it's not really advisable", said Vizentin. "Strictly speaking, the process should have begun from macrozoning - which would then offer directives for state zoning. But, for historical reasons, this did not occur. Now we are going in the opposite direction, starting off from the specific so as to encompass Amazon as a whole. To do so, it would be preferable to have these specific parts in hand."

Amazon Fund - During the meeting, minister Minc evaluated MMA's recent initiatives in the region. He said that, due to a series of initiatives - such as the Operation Arc of Fire and the Amazon Fund, which recently received a donation of US$ 110 million from Norway -, deforestation in the Amazon has been considerably reduced in the last few months.

+ More

Meeting in London strengthens Amazon Fund's role

03/04/2009 - This week, taking advantage of the opportunity provided by the G20 summit in London, Prince Charles - also head of the Prince's Rainforest Project - summoned a meeting with leaders of the world's largest economies to discuss solutions to halt the deforestation of rainforests across the world.

The meeting was attended by French president Nicolas Sarkozy; Indonesian president Susilo Bambang Yudhoyono; US secretary of state Hilary Clinton; Italian prime minister Silvio Berlusconi; German Chancellor Angela Merkel; European Commission president Jose Manuel Barroso; World Bank president Robert Zoellick; and UN secretary-general Ban Ki-moon, amongst others. Brazil was represented by chanceler Celso Amorim and the general director of the Brazilian Forest Service (Serviço Florestal Brasileiro/SFB), Tasso Azevedo.

At the St James' Palace meeting in London, Charles announced the results of an 18-month study focused on finding a way to channel funds to protect forests as part of the fight against climate change. The prince urged leaders to support an "emergency package" to save forests by diverting up to US$ 15 billion every year, from 2010 to 2020, to tropical nations such as Brazil and Indonesia. Donor nations would be asked to commit to long-term funding, money could be held and allocated by a new global body - and tropical countries would be free to choose how to spend it.

In a foreword to the report setting out the project's findings, Prince Charles said: "If deforestation can be stopped in its tracks, then we will be able to buy ourselves some much needed time to build the low-carbon economies on which our futures depend. If we fail, global warming will occur faster and more dramatically... Knowing this I felt I should do all in my power to help find some kind of solution".

The project suggests rainforest nations could sign up to five-year contracts under which they would commit to reducing deforestation to agreed levels - and would then receive annual payments in return. But the money would only be paid if satellite pictures confirmed that trees were being protected as promised. It says: "This would be a businesslike arrangement, a service contract under which the world pays rainforest nations for delivery of ecosystem services, rather than providing aid in a traditional way".

World leaders agreed to establish an international working group to present a model for the idea until next July. The goal is to find a model which everyone agrees upon before the COP 15 (United Nations Climate Change Conference) to be held from December 7 to 18, in Copenhagen.

According to Brazilian Forest Service Tasso Azevedo, the high-level meeting proved that we have managed, once and for all, to include forests and their sustainable use in discussions leading to the Climate Change Conference .

Minc - In Brazil, minister of the Environment Carlos Minc said today (April 2) he considered the discussion around the idea of creating an international mechanism "positive and emblematic", and that it revealed the Brazilian Amazon Fund's potencial for attracting funds for projects in the world's largest rainforest.

"We must be like a showroom to the world - offering projects focused on recuperating degraded areas and on promoting payment for environmental services, for example", he said. Minc also mentioned that Brazil was the first country (post-Kyoto) to establish a legal way of drawing in funds for forest conservation.

 
 

Source: Brazil - Ministry for the Environment
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