Amazon Rainforest Protection: ACTO's Belem Declaration on Sustainable Economic Pathway

August 18, 2023

This News Covers

Recently, leaders from eight South American nations convened in Belem, Brazil, for the Amazon Rainforest Summit.

The primary objective was to devise a unified strategy to protect the Amazon rainforest, a critical buffer against climate change. The summit, organized under the Amazon Cooperation Treaty Organization (ACTO), resulted in the Belem Declaration, which outlined a shared agenda for the rainforest's preservation. However, the declaration was criticized for lacking concrete commitments, especially concerning deforestation and oil exploration. While the summit recognized indigenous rights and proposed cooperation in various areas, it stopped short of meeting the boldest demands of environmentalists and indigenous groups. Key points of contention included deforestation targets, oil development, and the role of the Amazon in global climate strategies. Despite the criticisms, the summit was seen as a step forward in regional cooperation, emphasizing the Amazon's significance in global climate discussions.


What was achieved from the Amazon Rainforest Summit?

It saw the formation of a pact by the twelve rainforest nations. Their collective demand is for developed countries to financially assist poorer nations in combating climate change and conserving biodiversity.

The joint statement, named "United for Our Forests" was announced by the member regions, belonging to the Amazon, the Congo Basin, and Southeast Asia, are home to the world's most extensive rainforests, which are crucial ecosystems that absorb carbon dioxide and are rich in biodiversity. 

Brazil's President, Luiz Inacio Lula da Silva, initiated the Amazon summit to establish a united stance among rainforest nations for international negotiations, such as the upcoming United Nations COP28 climate summit. The primary message is for the affluent countries to financially contribute to the preservation of forests and the well-being of their inhabitants. The twelve nations have called for the creation of financial mechanisms for global compensation for the essential services forests provide. They expressed concerns over the failure of richer nations to fulfill their promise of providing $100 billion annually for climate financing to developing countries. Additionally, they urged developed countries to meet their existing commitment of $200 billion per year for biodiversity preservation. The pact also criticized the use of environmental measures perceived as trade restrictions, referencing the European Union's law against importing goods linked to deforestation.

This recent pact builds upon an agreement made a day earlier by the eight Amazon nations. However, some environmentalists criticized this earlier accord for not securing a commitment to halt deforestation by 2030.


Which countries attended the Amazon Rainforest Summit?

  1. Bolivia
  2. Brazil
  3. Colombia
  4. Ecuador
  5. Guyana
  6. Peru
  7. Suriname
  8. Venezuela

Additionally, other nations and representatives that were present or mentioned in relation to the summit include:

  1. Republic of Congo
  2. Democratic Republic of Congo
  3. France (representing the Amazonian territory of French Guiana)
  4. Norway (as the largest contributor to Brazil's Amazon Fund for sustainable development)
  5. Indonesia (an emissary from Indonesia's president was mentioned)

The final joint declaration, known as the Belem Declaration, created an alliance for combatting forest destruction. However, the summit did not fully meet the expectations of environmentalists and indigenous groups, especially regarding concrete commitments to end deforestation and halt new oil exploration.

Key Aspects of Amazon Rainforests

  1. Carbon Sequestration: The Amazon Rainforest acts as a significant carbon sink, absorbing vast amounts of carbon dioxide from the atmosphere. This process helps mitigate the effects of global warming.
  2. Oxygen Production: Through photosynthesis, the rainforest releases oxygen, which is essential for all aerobic organisms, including humans.
  3. Biodiversity: The Amazon is home to an unparalleled diversity of life, with countless species of plants, animals, and microorganisms, many of which are yet to be discovered.
  4. Water Cycle Regulation: The rainforest plays a crucial role in regulating the global water cycle. Trees release water into the atmosphere through transpiration, influencing rainfall patterns locally and globally.
  5. Medicinal Resources: Many of the world's essential medicines originate from compounds found in rainforest plants. The potential for future medical discoveries in the Amazon remains vast.
  6. Natural Climate Solution: Rainforests, including the Amazon, regulate global temperatures and are critical in controlling local and regional climates.
  7. Biodiversity Haven: Despite covering less than 3% of the Earth, rainforests are home to over half of the planet's terrestrial animal species.
  8. Freshwater Reservoir: Rainforests play a pivotal role in maintaining the Earth's limited supply of fresh water. They act as natural water filters and contribute significantly to the world's freshwater reserves.
  9. Source of Lifesaving Medicines: Over 60% of anticancer drugs come from natural sources, including rainforest plants. Compounds from these plants are used to treat various diseases, from malaria to tuberculosis.
  10. Livelihoods: Nearly 1 in 4 people worldwide depend on forests, including the Amazon, for their livelihoods.

What is the significance of Amazon Rainforests?

The Amazon Rainforest is world’s largest natural asset in the fight against global warming. It acts as a carbon sink, absorbing vast amounts of carbon dioxide, a greenhouse gas responsible for global warming. The Amazon's ability to sequester carbon has a direct economic value, as it helps mitigate the costs associated with climate change – from infrastructure damage due to extreme weather events to losses in agricultural productivity. However, recent deforestation trends threaten this. As trees are felled, stored carbon is released back into the atmosphere, exacerbating global warming. Economically, this not only diminishes the Amazon's value as a carbon sink but also incurs future costs for global economies as they grapple with the consequences of a changing climate.

Recent Reduction in Amazon Rainforests

Recent data indicates alarming rates of deforestation in the Amazon. For economists, this isn't just an environmental concern but a potential economic catastrophe. The immediate gains from logging or converting forests to farmland are overshadowed by long-term losses. These losses manifest in various ways: reduced carbon sequestration capacity, loss of biodiversity leading to potential pharmaceutical breakthroughs, and disruption of water cycles affecting agriculture. The global economy stands to lose billions, if not trillions, in the long run if the current rate of Amazon deforestation continues. It's a classic case of short-term gains versus long-term sustainability.

Amazon's Role in the Global Economy

The Amazon's economic significance extends beyond its borders. It's a hub for global trade, especially in agriculture and forestry products. Brazil, home to a significant portion of the Amazon, is a leading exporter of beef, soybeans, and timber. However, the economist in me sees a double-edged sword. While these industries contribute substantially to GDP and provide employment, they're also primary drivers of deforestation. There's a need to strike a balance. Sustainable farming and logging practices can ensure that the Amazon remains an economic powerhouse without depleting its invaluable resources.

Livelihood and Local Conservation Efforts

For local communities, the Amazon isn't just a forest; it's home and a source of livelihood. Millions depend on it for agriculture, fishing, and forest products. Economically, their activities might seem small-scale, but cumulatively, they contribute significantly to national economies. Recognizing this, there have been local conservation efforts, often community-driven, to ensure sustainable use of resources. These efforts, supported by global organizations, aim to provide locals with alternatives that are both economically viable and environmentally friendly. Such grassroots initiatives are crucial, as they ensure that conservation is both a local and global effort.

Beyond the Trees: The Amazon's Untapped Potential

Lastly, the economist in me sees the Amazon as a treasure trove of untapped potential. Beyond its known resources, it's a reservoir of undiscovered species, potential pharmaceuticals, and indigenous knowledge. Its biodiversity could lead to breakthroughs in medicine, agriculture, and more. Economically, this represents potential billions in future revenue. But realizing this potential requires a shift in perspective – from seeing the Amazon as a source of timber and land to recognizing its value as a living library of resources.


Which top countries import produce from Amazon rainforest?

The European Union's Dependence on Amazon Produce

The European Union (EU) is a significant importer of produce from the Amazon rainforest, particularly soya and beef. Brazil, which houses a significant portion of the Amazon, is a leading exporter of these commodities. According to a study, up to one-fifth of Brazil's soya exports to the EU may be tainted by illegal deforestation. This raises concerns not only about the environmental impact but also about the ethical considerations of the supply chain. The research indicates that a small percentage of properties, about 2%, are responsible for a whopping 62% of illegal deforestation. This deforestation is directly linked to the production of soya and beef destined for European markets.


What are the trade related challenges that Amazon Rainforests are facing?

The "Bad Apples" in the Export Chain

The term "bad apples" has been used to describe the properties and farms that are major culprits behind illegal deforestation in the Amazon. These entities, though limited in number, have a disproportionately large impact on the environment. From an economic perspective, while these "bad apples" might bring short-term gains from exports, they pose long-term risks. These include potential trade restrictions, boycotts, or sanctions from importing countries concerned about environmental sustainability. The challenge lies in identifying and regulating these entities to ensure that exports are both profitable and sustainable.

The Economic Implications of Deforestation-Linked Exports

When products linked to deforestation enter global markets, they carry with them a host of economic implications. For importing countries, there's the ethical dilemma of consuming products that contribute to environmental degradation. For Brazil and other exporting nations, there's the risk of tarnishing the country's image, which can have broader economic repercussions. Trade relationships can be strained, and countries might face restrictions or bans on their exports. Moreover, as global consumers become more environmentally conscious, there's a growing demand for sustainably produced goods. This shift in consumer preference can impact market dynamics and trade flows.

The Livelihood Aspect and Local Conservation Efforts

The Amazon isn't just a global resource; it's also home to millions who depend on it for their livelihood. The production of soya, beef, and other commodities provides employment and economic sustenance for a significant portion of the local population. However, the challenge is to strike a balance between economic growth and environmental sustainability. Local conservation efforts, often driven by communities and supported by global organizations, aim to achieve this balance. These initiatives promote sustainable farming practices, ensuring that the local population can continue to derive economic benefits from the rainforest without depleting its resources.

The Way Forward: Sustainable Trade Practices

The findings from the study underscore the need for sustainable trade practices. It's evident that a small number of properties are causing significant environmental damage. Addressing this issue requires a multi-pronged approach. Firstly, there's a need for stricter regulations and monitoring within exporting countries to ensure that produce is sourced sustainably. Secondly, importing countries can play a role by setting sustainability standards for imports. Lastly, global consumers have the power to drive change through their purchasing choices. By opting for sustainably produced goods, consumers can exert pressure on producers and exporters to adopt environmentally friendly practices.


Which minerals are found in Amazon rainforests?

The Amazon rainforest, with its vast mineral wealth, plays a crucial role in the global economy. However, the extraction of these resources needs to be balanced with sustainable practices to ensure the long-term health and survival of this invaluable ecosystem.

Gold, Copper, Diamonds, and Other Precious Resources

The Amazon rainforest is rich in minerals and houses a variety of precious metals and gemstones. Some of the significant minerals found in the rainforest include:

  1. Gold: Gold mining is a prevalent activity in parts of the Amazon, especially in countries like Brazil and Peru. However, the extraction process often leads to deforestation and ecosystem damage.
  2. Copper: This metal, essential for various industries, is also extracted from the Amazon rainforest. Like gold mining, copper extraction can be detrimental to the environment.
  3. Diamonds and Other Precious Gemstones: Apart from gold and copper, the Amazon rainforest is also a source of diamonds and other valuable gemstones. These resources attract mining activities, which, if not managed sustainably, can harm the rainforest ecosystem.

Consequences of Mining Activities

Extracting these natural resources often results in significant environmental damage. The rainforest ecosystem faces threats, and local communities experience problems due to mining operations. Toxic runoff from mining sites, especially, poses a danger to river systems. There have been instances where mining companies, sometimes in collaboration with local authorities, have forcibly evicted forest communities to exploit the mineral wealth.

Oil and Gas Exploration

Some of the world's most promising oil and gas deposits are located deep within tropical rainforests. The development of these resources, especially in rainforest regions, can lead to the displacement of local communities, air and water pollution, and deforestation. The western Amazon, including countries like Colombia, Ecuador, Peru, and Brazil, has witnessed significant exploration activities. Over 70% of the Peruvian Amazon, which includes indigenous territories and conservation areas, is now under concession for oil and gas exploration.

Dams and Their Impact

Dams pose a significant threat to rainforests, especially in the Amazon. They disrupt river systems, lead to flooding of vast rainforest areas, and displace forest communities. The power generated by these dams often supports large-scale mining activities, causing further deforestation. For instance, in Brazil, the Belo Monte Dam disrupted the Xingu River, leading to the flooding of over 100,000 acres of rainforest and the displacement of more than 15,000 people.


What is ACTO? treaty and their goals, ambitions?

ACTO: The Amazon Cooperation Treaty Organization

countries of the Amazon basin to collaborate on sustainable development and environmental protection. Born out of the Amazon Cooperation Treaty, ACTO aims to promote the sustainable development of the Amazon Basin, recognizing the significance of the Amazon rainforest not just for the countries it spans but for the global community.

Goals and Ambitions:

  1. Sustainable Development: ACTO emphasizes the sustainable use of the Amazon's resources, ensuring that economic activities do not come at the cost of environmental degradation.
  2. Environmental Protection: Recognizing the Amazon's role as a global carbon sink and its unparalleled biodiversity, ACTO prioritizes its conservation. The organization seeks to combat deforestation and promote practices that preserve the rainforest's health.
  3. Collaboration: ACTO provides a platform for member countries to collaborate on shared challenges. This includes coordinating efforts to combat illegal logging, promoting sustainable agricultural practices, and sharing knowledge and best practices.
  4. Engaging the Global Community: ACTO member countries often present a united front in global forums, emphasizing the Amazon's global significance. For instance, during international negotiations like the United Nations COP28 climate summit, ACTO countries aim to highlight the Amazon's role in global climate regulation and seek support for its conservation.
  5. Local Community Engagement: Recognizing that the Amazon is home to numerous indigenous communities, ACTO emphasizes their role in conservation efforts. The organization promotes the rights of these communities and seeks to ensure that they benefit from the sustainable use of the Amazon's resources.

ACTO plays a crucial role in ensuring that the Amazon rainforest, often termed the "lungs of the Earth," remains a vibrant and thriving ecosystem. Through collaboration and a shared vision, ACTO member countries aim to strike a balance between economic development and environmental conservation.

Editor's Pick

Information and Communication Technology

Apple Vision Pro China Launch Confirmed
April 2, 2024

Information and Communication Technology

Insurtech Funding News - Coverdash raises USD 13.5 Million
April 2, 2024


Sustainable Digital Transformation & Industry 4.0

Sustainable Digital Transformation & Industry 4.0

Sanjay Kaul, President-Asia Pacific & Japan, Cisco, and host Aashish Mehra, Chief Research Officer, MarketsandMarkets, in conversation on unraveling 'Sustainable Digital Transformation and Industry 4.0'

11 July 2023|S2E12|Listen Now

Future of Utilities with Thomas Birr from E.ON

Generative AI

Prasad Joshi, Senior Vice President-Emerging Technology Solutions, Infosys, and host, Vinod Chikkareddy, CCO, MarketsandMarkets, in exploring the recent advances in AI and the generative AI space.

7 Nov 2023|S2E13|Listen Now

Download Whitepaper


Subscribe Email

Follow IndustryNews by MarketsandMarkets Protection Status