The agreement that kept the Amazon rainforest from turning into a giant soybean field is falling apart after the industry body representing some of the world’s biggest grain traders backed out of it.
For 13 years, deforestation was down 69% in monitored parts of the Amazon rainforest that fell under the Amazon Soy Moratorium’s protections, an agreement that came about in 2006 to control soy — one of the Amazon’s biggest deforestation drivers.
The traders — Cargill, ADM, Bunge, Louis Dreyfus, COFCO, and Amaggi – command more than half of Brazil’s soy exports, meaning the moratorium’s protections are now effectively gone for the majority of the market.
Traders left the moratorium after sustained lobbying led to the removal of tax incentives that encouraged compliance, and the timing could not be worse. The EU’s delay of its deforestation regulation and a new deal to increase Brazilian agricultural imports to Europe could drive further soy expansion in the Amazon.
Researchers warn that the consequences could be severe, projecting a 30% increase in deforestation by 2045 that could accelerate the Amazon’s collapse into a fire-prone savannah.
The financial institutions that provided $75 billion in loans and underwriting to Brazil’s soy sector are now sitting on a major quandary. Citibank, Bank of America, BNP Paribas, and Barclays are the biggest backers of Cargill, ADM, Bunge and Louis Dreyfus. All of these banks have made commitments to address deforestation. They now have a choice to make.
RAN and allies have written to these banks demanding that they use their financial leverage to push traders to recommit to the moratorium’s basic terms, including a rejection of all Amazon deforestation. But banks’ sustainability commitments and financing activities do not always align without sustained public pressure.
Brazil’s Indigenous movement continues to be one of the most important forces against Amazon destruction. This February, Indigenous communities occupied Cargill’s port in Santarém, Pará for 33 days until the government canceled the privatization of major Amazon rivers to turn them into waterways for soy export capacity.
Their victory showed that endless soy expansion is not inevitable, it’s vulnerable to political and economic pressure.
Now, the spotlight is back on the banks: if they’re serious about their “No Deforestation” commitments, they have the leverage to force the world’s largest soy traders back to the table. The question is whether they will use it.
You can help us by signing our petition here. Don’t let big banks walk away from their responsibility.