‘Lungs of the Earth’ Amazon Breathes Again... ‘Amazon Fund’ Management Resumes

Brazil Supreme Court Orders Resumption of Fund Management Within 60 Days
Established During Lula's 2008 Term ... Frozen Since 2019

The Brazilian Supreme Court has ruled to resume the management of the Amazon Fund, which had been frozen for three years. The photo shows the burning Amazon rainforest. Photo by Yonhap News Agency

[Asia Economy Reporter Kim Hyunjung] The operation of the world's largest forest protection fund, the 'Amazon Fund,' which was suspended in 2019, will soon resume.

According to a report by the British Guardian on the 4th (local time), on the 3rd, the Brazilian Supreme Court ruled that the operation of the Amazon Fund must be resumed within 60 days. Accordingly, the Brazilian Development Bank will be able to execute the fund, which had been frozen at 3 billion reais (approximately 833.1 billion KRW).

This fund was established by the Brazilian government during the presidency of Luiz In?cio Lula da Silva in 2008. The fund was contributed to not only by Brazil but also by Norway and Germany, with Norway bearing more than 90% of the cost, and the remainder provided by Germany and the Brazilian state-owned energy company Petrobras. However, after President Bolsonaro took office in 2019 and halted environmental protection measures in the Amazon basin, the fund's operation fell into disarray. Since Bolsonaro's administration, deforestation of the Amazon rainforest has worsened, and when the Brazilian government announced plans to use the fund for other purposes, Norway canceled its new donation plans, and the fund's operation has been suspended since August 2019.

Regarding environmental issues, Lula and Bolsonaro have shown distinctly different stances. During his eight years as president, Lula reduced deforestation by more than 70%, and he announced that after beginning his third term on January 1 next year, he aims for zero deforestation rates. In contrast, deforestation has increased every year under Bolsonaro's administration, with this year marking the highest level in 15 years. Bolsonaro abolished environmental agencies and encouraged the exploitation of abundant natural resources even in remote areas.

The Brazilian Supreme Court viewed Bolsonaro's decision to suspend the fund's operation as unconstitutional and inappropriate given the increasing number of deforestation and fire incidents. In fact, Brazil and European countries have continuously clashed over the issue of Amazon rainforest destruction. A report released in June by the Brazilian Federal Audit Court stated that Bolsonaro's suspension decision caused the Amazon Fund to miss the opportunity to raise billions more reais.

Following the Supreme Court's decision, environmental groups and the governments of Germany and Norway all expressed their approval. Just hours after the ruling, Heiko Thoms, the German Ambassador to Brazil, acknowledged the court's decision and stated that the German government would contribute once again. Ambassador Thoms also referred to the previous government, saying, "Brazil achieved impressive results in reducing deforestation in the Amazon, and it will be able to continue doing so in the future."

This content was produced with the assistance of AI translation services.