Amazon Fund for Forest Conservation and Climate
Title: Amazon Fund for Forest Conservation and Climate
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ) and Norwegian Government
Lead executing agency: Banco Nacional de Desenvolvimento Econômico e Social (BNDES) – Brazilian National Bank for Economic and Social Development
Overall term: 2010 to 2021
Brazil's national climate change policy aims to completely eradicate deforestation in the Amazon region and reduce national CO2 emissions by 43% by 2030. Regional measures of the Action Plan for the Prevention and Control of Deforestation in the Legal Amazon (PPCDAm) have contributed to the reduction in the annual deforestation rate from 27,772 km² in 2004 to 7,900 km² in 2018. From 2004 to 2018 the deforestation rate was reduced by 72%. In 2018, however, deforestation increased by 13,7% compared to the prior year.
The Amazon Fund, founded by the Brazilian government in 2008, is considered to be the world's most successful, results-based national funding mechanism for REDD+ (Reducing Emissions from Deforestation and Forest Degradation and the role of conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries). So far it has received USD 1,288,000,000 from international donors for its demonstrated reductions in deforestation.
With USD 1,212,000,000 Norway is the Fund´s largest donor. Germany, through the KfW Development Bank, has so far provided approximately EUR 55,000,000.
The Amazon Fund is managed by the Brazilian Development Bank (BNDES). Strategic decisions concerning the implementation of the Fund are made by the Steering Committee, which consists of state, federal and civil society actors. Therefore, the ownership of the fund and the responsibility for its results lie entirely on Brazil.
The Amazon Fund has improved its performance qualitatively and quantitatively.
The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH is working on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) to advise the Amazon Fund staff of the Brazilian development bank BNDES. It advises potential applicants and implementing organisations of the public sector, and partially the third sector, as well as, in the course of evaluations, the direct project beneficiaries – mainly in the Amazon states.
The cooperation is co-financed by the Norwegian government with EUR 6,600,000 until December 2021.
- Increase in funding: In 2010, the Fund supported only 13 projects with a disbursement of USD 5,000,000, whereas in 2019 there are already 103 projects funded, with a disbursement of USD 460,000,000 (February 2019).
- The fund provided support in new strategic areas: sustainable production; environmental management in indigenous protected areas; the Brazilian Environmental Registry CAR. In 2017, public calls for projects for sustainable value chains and reforestation were added, with a total value of USD 94,000,000. New funding lines have been opened to promote the sustainable development of settlements (aligned with the agricultural reform) and strengthen the capacities of federal institutions responsible for controlling deforestation. The GIZ supported these calls for tenders by carrying out workshops as well as providing e-learning opportunities for potential applicants.
- The GIZ improved the project implementation through capacity development facilitated by face-to-face workshops and virtual courses on an E-learning platform (Furthermore, learning materials such as a manual for monitoring have been produced. 102 people have already been trained. The project advised larger projects directly with regard to resolving implementation bottlenecks. This led to an average increase in financial implementation by 45% and in disbursements by 21% on project level. In the case of the Governmental institution responsible for controlling deforestation, IBAMA (Brazilian Institute of Environment and Renewable Natural Resources), the disbursement increased by 84%.
- Conducting evaluations: The GIZ supported the ex-post evaluations of six completed projects. The evaluations demonstrated the projects significant contributions in reducing deforestation and restoration of degraded land. One project established a regional seedlings market for reforestation and therefore laying the foundation for a sustainable local production system. Another project strengthened sustainable production chains in 16 protection zones, such as handicraft to improve the income of women. An overall evaluation of the Amazon Fund is taking place and will be finalized until the end of 2019.