During New York Climate Week on September 27, we organized an event with the Science Panel for the Amazon (SPA) focused on climate financing for the restoration and sustainable development of the Amazon.

The event brought together eminent specialists to explore the interaction between climate financing, restoration efforts, and sustainable development in the Amazon basin.

This region is at a critical crossroads—a climate tipping point—while the world faces the challenges of climate change.

From SPA’s perspective, we emphasized the urgency of the issues and the need for collaboration. In IDB Invest’s intervention, we stressed the importance of unity in addressing the multifaceted challenges the Amazon region faces.

COP30 in Brazil 

Ambassador André Correa do Lago, Secretary of Climate and Environment of the Ministry of Foreign Affairs of Brazil, framed the challenges of organizing COP30 (UN Climate Change Conference ) in his country. 

He highlighted the urgency of addressing deforestation, Brazil's primary source of emissions, and emphasized that halting deforestation alone will not solve the global climate crisis. 

The real challenge lies in addressing fossil fuel emissions. Despite this, Ambassador do Lago expressed optimism, citing the Declaration of Belém and the United for Our Forests initiative to unite 67 nations with tropical forests around shared interests.

A New Paradigm 

Roxana Barrantes from the SPA presented key findings from the Policy Brief “A New Infrastructure for the Amazon.” 

The document emphasizes the need for a new paradigm in Amazonian infrastructure that focuses on the needs of local populations while safeguarding the environment. 

WATCH: Amazonia Finance Network

Discover the largest financial inclusion program in Latin America and our exciting expansion plans to drive sustainable development across the Amazon region. (Content in Portuguese. Use Settings/Subtitles/Auto-translate and choose your preferred language)

Ricardo Abramovay highlighted the untapped potential of the socio-bioeconomy in the Amazon and advocated for a focus on diversity in forest conservation and non-timber products.

Catarina Jakovac highlighted the alarming state of the Amazon forest, where around 20% of native forests have been deforested.

She advocated moving from "deforestation arcs" to "restoration arcs" through various strategies, including natural regeneration and active planting.

These efforts require the participation of local stakeholders and the promotion of the restoration supply and value chain.

Obstacles and Opportunities 

Prominent experts such as Valmir Ortega, Marcelo Medeiros, Ilona Szabó, Hervé Duteil, and James Mulligan participated in the panel discussion. 

Their diverse perspectives enriched the conversation, calling for innovative financial mechanisms that recognize the intrinsic value of nature. 

Ilona Szabó addressed the obstacles and opportunities for Amazonian development, highlighting the need to restore degraded lands and reduce investment risks.

Related Content

• Calling Private Investors: Four Opportunities to Scale Impact in the Amazon Region
• IDB Invest Sustainability Week 2024

Valmir Ortega emphasized the need for tailored strategies to restore millions of hectares of degraded lands, highlighting the importance of public subsidies to promote sustainable practices.

 Marcelo Medeiros shared an ambitious vision of restoring one million hectares of forest, highlighting the fundamental role of biodiversity and partnerships with local producers. 

James Mulligan stressed that adequate solutions for the Amazon require innovation and a solid commitment to action, highlighting the importance of halting tropical deforestation and promoting large-scale restoration.

Hervé Duteil highlighted the need to shift the focus from scaling up to multiplying financial flows towards the Amazon to meet the region’s development needs. 

He proposed using outcome bonds to transfer risk and advocated for a price on nature that goes beyond carbon and biodiversity credits.

Financial Innovation

The event concluded with a discussion on Amazon Bonds with the World Bank as a potential tool for restoration financing. 

Innovative financial mechanisms, such as Amazon Bonds, bioeconomy investments, and results-based financing, were clearly called for. 

JOIN A COMMUNITY OF 40,000 DEVELOPMENT LEADERS AND GET THE LATEST ON OUR PROJECTS AND KNOWLEDGE

The socio-bioeconomy was identified as key to sustainable development, promoting forest conservation and non-timber products. 

Ensuring accountability in climate financing is crucial to achieving tangible results for communities and ecosystems.

As COP30 approaches, collaborative action, and cross-sector partnerships are essential to integrate these efforts into global climate strategies and ensure the future of the Amazon.