December 17, 2024
Environmental groups condemn laws threatening soy moratorium in Brazil's Amazon
Dozens of environmental non-profits issued a manifesto criticising new legislation in Brazilian states that threatens the Amazon soy moratorium, a voluntary agreement aimed at curbing deforestation caused by soybean production.
The 18-year-old moratorium, established in 2006, requires traders and oil producers to refrain from buying soybeans grown on land cleared after 2008. The agreement brought together environmental organisations like Greenpeace and WWF alongside major US commodity firms such as Cargill, Bunge, and ADM.
New laws in Mato Grosso, Brazil's largest soybean-producing state, and neighbouring Rondonia have withdrawn tax incentives from processing and trading companies that adhere to the moratorium. Similar legislation is under consideration in two other states and Brazil's Congress.
The manifesto, signed by 67 organisations, including Greenpeace, WWF, and Climate Observatory—a coalition monitoring Brazil's climate policies—criticised the new measures. It stated that the laws "penalise companies committed to ending deforestation, promote the continued expansion of agribusiness in Amazon forest areas, create subsidies for deforestation, and discriminate against the granting of tax incentives based on companies' environmental commitment."
The signatories argued that those striving for higher environmental standards are now at a disadvantage. "Those who are more ambitious in environmental protection lose the incentive," the statement added.
The document highlighted that soybean production has grown significantly in the Amazon under the moratorium. Production expanded from 1.6 million hectares (4 million acres) in 2007 to 7.28 million hectares (18 million acres) in 2022. The report attributes this growth to the use of pastureland rather than newly deforested areas.
The manifesto also urged companies operating in Mato Grosso and Rondonia to remain committed to the moratorium despite the financial burden of losing tax incentives. It acknowledged that this would be particularly challenging for small and medium-sized companies.
Research has shown that the moratorium has played a key role in preserving the Amazon rainforest. A 2020 study published in Nature Food found that the agreement, when combined with public policies, contributed to Brazil's steepest recorded decline in deforestation between 2003 and 2016.
In response, the Mato Grosso government defended its position, stating that the moratorium imposes stricter requirements than Brazil's existing environmental regulations, which it described as "the world's strictest." The government highlighted that most of Mato Grosso remains covered by native rainforest.
"We challenge these non-profits to name any state, in any country, that is a major food producer and preserves 60% of its territory," the government's statement read.
- Voice of America
