Biden pledges USD 500 million for Amazon Fund

Presidents Lula and Biden met in Washington in February. Photo: Ricardo Stuckert/PR

The White House announced Thursday that President Joe Biden will request Congress for USD 500 million over five years for “the Amazon Fund and related activities in the context of Brazil’s renewed commitment to end deforestation by 2030.”

U.S. Special Presidential Envoy for Climate John Kerry said on Twitter that the president “announced nearly USD 2 billion in planned support for Brazil’s efforts,” including potential DFC equity in the BTG Restoration Strategy to leverage nearly USD 1 billion, and USD 380 million in LEAF Coalition forward purchase commitments for Brazilian states.

Back in February, Washington made a reported initial offer of USD 50 million to the Amazon Fund — the number was omitted from the joint statement by Presidents Biden and Luiz Inácio Lula da Silva.

Mr. Biden’s 2023 budget, unveiled on March 9, includes more than USD 11 billion in international climate finance, but the amount of Brazil’s contribution had not yet been revealed.

“The president also will call on other leaders to pledge support to the Amazon Fund,” the White House said in a statement.

Created in 2009, the Amazon Fund pays for sustainable development projects in the Brazilian rainforest. It is sponsored primarily by Norway and Germany, and managed by Brazil’s National Development Bank (BNDES), which is responsible for raising and investing funds, monitoring the sponsored projects, and ensuring accountability.

To date, the Amazon Fund has raised BRL 3.3 billion (USD 650 million at current exchange rates), mostly from Norway. The fund’s operation was suspended in 2019 by the Jair Bolsonaro administration and reinstated by the Lula government.

Obtaining U.S. support for the Amazon Fund is one of the main stated goals of Environment Minister Marina Silva. She said the U.S. will have a “catalyzing effect,” attracting other countries to join.

During his visit to Brazil in late February, Mr. Kerry said “we know we will have a fight to get things through that particular channel,” in a reference to Republican opposition in the U.S. Congress.

Republican Senator Ted Cruz of Texas has called President Lula “an unrepentant Chavista,” in a reference to Lula’s longstanding alliance with Latin American left-wing parties and his support for the Nicolás Maduro regime in Venezuela.