Forestry Investment News
CIFOR: Increasing pressure on private sector to help protect forests
02/08/2012
More needs to be done by the private sector to help protect the Amazon rainforest, according to a new report from the Center for International Forestry Research (CIFOR).
Although the Brazilian economy is strong and has been strengthened by a growing private sector, some industries, including agribusinesses operating on a large scale, have been less than environmentally responsible in the past. They have attracted much criticism for their tendency to clear forest land for grazing and crop growing, which has significantly contributed to climate change and deforestation.
The CIFOR report now claims that it is time for these industries to take more responsibility for the future of the rainforests as the eyes of the world are looking to see how Brazil responds to growing environmental regulation. A growing number of Brazilian states are keen to introduce regulations that ensure private sector businesses adhere to sustainability policies. Hand in hand with this growing pressure from government comes increased consumer pressure from the public, who are aware of the importance of sustainable production.
Pablo Pacheco of CIFOR is looking into the effects of globalized trade on the forests of Brazil. He explained: “The private sector has always played an important role in the Amazon. In some cases, of course, this has led to deforestation and the chaotic process of the expansion of the agricultural frontier, and in some cases to a very unequal distribution of incentives and resulting benefits."
However, he goes on to add that corporations are realizing the error of their ways and are now beginning to adjust to new consumer and regulatory demands: “This has gradually changed over time, and many landholders and corporate actors increasingly realize that adjusting to the new rules of the game may be the only way for the private sector to position itself favorably in the markets of the future.”
The CIFOR report explains that forestry does still have a place in the new sustainable Brazil, providing projects are managed sustainably and with empathy for the communities surrounding any plantations or logging projects.
Mr Pacheco added that some regulatory policies are still quite confused and that many corporations are being pulled between stricter environmental policies and an increased desire for economic growth, which could generate challenges in the coming years. However, he concluded, “We have more state enforcement and markets trying to constrain companies who are not adopting more sustainable practices. They have to take some steps if they want to continue being important actors in shaping the development pathways in the Amazon region.”
Although the Brazilian economy is strong and has been strengthened by a growing private sector, some industries, including agribusinesses operating on a large scale, have been less than environmentally responsible in the past. They have attracted much criticism for their tendency to clear forest land for grazing and crop growing, which has significantly contributed to climate change and deforestation.
The CIFOR report now claims that it is time for these industries to take more responsibility for the future of the rainforests as the eyes of the world are looking to see how Brazil responds to growing environmental regulation. A growing number of Brazilian states are keen to introduce regulations that ensure private sector businesses adhere to sustainability policies. Hand in hand with this growing pressure from government comes increased consumer pressure from the public, who are aware of the importance of sustainable production.
Pablo Pacheco of CIFOR is looking into the effects of globalized trade on the forests of Brazil. He explained: “The private sector has always played an important role in the Amazon. In some cases, of course, this has led to deforestation and the chaotic process of the expansion of the agricultural frontier, and in some cases to a very unequal distribution of incentives and resulting benefits."
However, he goes on to add that corporations are realizing the error of their ways and are now beginning to adjust to new consumer and regulatory demands: “This has gradually changed over time, and many landholders and corporate actors increasingly realize that adjusting to the new rules of the game may be the only way for the private sector to position itself favorably in the markets of the future.”
The CIFOR report explains that forestry does still have a place in the new sustainable Brazil, providing projects are managed sustainably and with empathy for the communities surrounding any plantations or logging projects.
Mr Pacheco added that some regulatory policies are still quite confused and that many corporations are being pulled between stricter environmental policies and an increased desire for economic growth, which could generate challenges in the coming years. However, he concluded, “We have more state enforcement and markets trying to constrain companies who are not adopting more sustainable practices. They have to take some steps if they want to continue being important actors in shaping the development pathways in the Amazon region.”
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