Business

Deforestation in Brazil poses growing investment risks

Deforestation in Brazil poses growing investment risks
Photo: Marcos Vergueiro/SECOMMT

According to Norwegian investment fund Storebrand Asset Management, the Brazilian government’s handling of environmental issues is hurting the country’s ability to secure investments from increasingly environmentally conscious investors. Deforestation in Brazil has increased during the Covid-19 pandemic.

Storebrand CEO Jan Erik Saugestad pointed out that the government’s environmental policies seem to facilitate deforestation in Brazil and the exploitation of natural resources in the Amazon rainforest, such as President Jair Bolsonaro’s decree authorizing mining activities within indigenous territories — seen as an illegal circumvention of article 231 of the Brazilian Constitution.

President Bolsonaro’s administration has come under intense scrutiny...

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