Amazon Fund and Climate Finance in the Amazon
By Yandra França (CFC-GS/UFPA) Presented in 2007, during the Conference of the Parties (COP) held in Bali, the concept of the Amazon Fund emerged to encourage the actions established in the Sustainable Amazon Plan (PAS) (https://www.fundoamazonia.gov.br/export/sites/default/pt/.galleries/documentos/biblioteca/PAS-Presidencia-Republica.pdf) and in the Action Plan for the Prevention and Control of Deforestation in the Legal Amazon (PPCDAm) (https://www.gov.br/mma/pt-br/assuntos/controle-ao-desmatamento-queimadas-e-ordenamento-ambiental-territorial/controle-do-desmatamento-1/amazonia-ppcdam-1). It was officially established by Decree No. 6,527 of August 1, 2008, and is managed by the Brazilian Development Bank (BNDES), under the coordination of the Ministry of the Environment. 1. The Amazon Fund The main objective of the Fund is to mobilize donations for non-reimbursable investments in initiatives aimed at preventing, monitoring, and combating deforestation, while conserving and promoting the sustainable use of the Amazon biome’s forests. In addition, the Fund may allocate up to 20% of its resources to the development of systems that monitor and control deforestation, both in Brazil and in other tropical countries. Structurally, the Fund is organized around four areas of action: The Amazon Fund is eligible to support projects developed by the three levels of government, direct and indirect public agencies, private foundations, private companies, cooperatives, civil society organizations, and multilateral institutions. Accordingly, there are four ways to obtain financial support: The minimum amount for each approved project is R$ 5,000,000.00. To date, the Fund has supported 144 projects, with approximately R$ 5.188 billion in financial support. Among its most significant achievements are 259,000 people benefiting from sustainable productive activities, 1.2 million rural properties registered in the Rural Environmental Registry (CAR), 75,000 Indigenous people directly benefiting from supported initiatives, and 2,159 researchers and technical professionals involved in supported Science, Technology, and Innovation (ST&I) activities. According to the latest portfolio published by the Fund, referring to the month of March, 2025 recorded the highest financial disbursement, totaling R$ 387 million. Pará was the state with the highest number of supported projects, whereas Roraima had only two projects. Meanwhile, although Amapá ranked third in the number of projects, it received the highest cumulative amount of funding over the years. In addition, the Fund currently supports five projects outside the Legal Amazon and one international project. 2. The Amazon Fund in Climate Finance Within the climate finance framework, the Amazon Fund contributes indirectly through forest conservation, preventing deforestation and consequently avoiding large greenhouse gas emissions. Regarding climate adaptation, one example is the “Sanear Amazônia – Safe Drinking Water for Amazon Communities” initiative, launched in 2024, which aims to select civil society organizations to coordinate the implementation of social technologies that provide access to safe drinking water for human consumption and food production, while also offering family support services to promote the social and productive inclusion of 4,626 families in the states of Acre, Amazonas, Amapá, Pará, and Rondônia. Another example is the “Restore the Amazon” (Restaura Amazônia) program, which provides non-reimbursable financing for ecological restoration using native species and agroforestry systems. The initiative has up to R$ 450 million available and operates in macro-regions including Pará, Maranhão, Acre, Amazonas, Rondônia, Mato Grosso, and Tocantins. Ecological restoration contributes both to mitigation, by capturing carbon, and to adaptation, by restoring soils, water resources, biodiversity, and the resilience of local territories. Finally, the “Forests and Communities: Living Amazon” (Florestas e Comunidades: Amazônia Viva) project, launched in 2026 in partnership with CONAB, supports improvements in logistics, product processing, storage infrastructure, and access to renewable energy within the socio-productive systems of beneficiary communities. In conclusion, the Amazon Fund has increasingly established itself as a key instrument for forest restoration and climate finance within the Legal Amazon, consolidating its role as a strategic mechanism for protecting the Amazon biome and strengthening its capacity to adapt to the challenges posed by global climate change. Sources: https://www.fundoamazonia.gov.br/en/home/
