Write: Pia Zevallos, general manager of Libélula.
The Amazon is the largest tropical forest on the planet, occupying about 40% of the surface area of the Americas and extending into Bolivia, Brazil, Colombia, Ecuador, Guyana, Peru, Suriname and Venezuela (ACTO, 2023). This region faces critical challenges, such as the transition from a rainforest to a drier one due to climate change, and a decrease in its capacity as a carbon sink, exacerbated by deforestation, which has led to the loss of approximately 85 million hectares of forest by 2021, according to Conservación Amazónica.
In this context, investment in conservation must be a priority. The implementation of innovative financial mechanisms such as Payments for Environmental Services (PES), Biodiversity Offsets, Habitat Banks, Carbon Credits and Water Funds stand out in this struggle. The Green Coalition of banks announced during COP 28, that they aspire to mobilize around 20 billion dollars to finance investments in the Amazon region, and in Peru, more than 14 billion soles have been allocated to investment projects in the Amazon, according to Proinversion.
The bioeconomy in the Amazon has the potential to grow significantly. By analyzing only 13 products such as açaí, cocoa and honey, the study New Economy for the Brazilian Amazon concludes that these assets could increase the GDP of the Brazilian bioeconomy by at least $8 billion per year, highlighting the capacity for economic growth associated with the conservation of the Amazon and the sustainable use of its resources. The implementation of a new economic model represents a considerable financial commitment, estimated at more than $541 billion until 2050 (Mongabay, 2023).
At Libélula we consider it vital that more public and private actors in the countries that make up the Amazon region work together and invest in projects that benefit the Amazon through Green Finance. This is all the more urgent if we consider that more and more interests of illegal activities are gathering around this territory, which could make the degradation and deforestation of this key asset for the future irreversible.
We must recognize the irreplaceable role of the Amazon not only as a bastion of biodiversity, but also as a vital economic engine for the development of South America. It is estimated, according to SERFOR, that Peru's Amazon forest as of 2019 contributed around 1,04% to the national economy, that is, an estimated value of 7,909 million soles, and it could be much more.
Next year, during COP30, which will be held in Belém, Brazil, the Amazon will play a decisive role in the fight against climate change. We consider it crucial that the private sector can respond with sustainable practices and investments, demonstrating a tangible commitment to the conservation of this essential ecosystem for humanity.
Note published in the Gestión Newspaper
