The Amazon Fund is a REDD+ mechanism created in 2008 to raise donations earmarked for non-refundable investments in preventing, monitoring and combating deforestation. It was also created to promote the conservation and sustainable use of forests in the Amazon Biome.
Given below are a few key aspects of the Amazon Fund:
|When was the fund proposed?||August 1, 2008|
|When was it made operational?||March 1, 2009|
|Managed by||BNDES, The Brazilian Development Bank|
Why is it in news?
In June 2020, Uganda became the first African country to submit results for Reducing Emissions from Deforestation and forest Degradation (REDD+) to the United Nations Framework Convention on Climate Change (UNFCCC).
Further below in this article, we shall discuss the objectives, structure and management of the Amazon Fund, which is an important topic from the upcoming competitive exams perspective. Candidates can learn more about the IAS Exam at the linked article.
|Preparing for the upcoming Civil Services Exam? Refer to the links below and ace the examination:|
What is the Amazon Fund?
- The purpose of the Amazon Fund is to provide an incentive for Brazil and other tropical-forested developing countries to continue and increase voluntary reductions of greenhouse gas emission from forest deforestation and degradation
- The Amazon Fund’s main purpose is to promote the protection of this heritage and the sustainable development of the area. In addition to managing the Fund
- It is a REDD+ mechanism and was created to raise contributions so that investments can be made in efforts to prevent, monitor and combat deforestation, as well as to promote the conservation and sustainable use of forests in the Amazon Biome
|About the Amazon Rainforest
The Amazon rainforest is a moist broadleaf tropical rainforest in the Amazon biome that covers most of the Amazon basin of South America.
Comprising about 40% of Brazil’s total area, it is bounded by the Guiana Highlands to the north, the Andes Mountains to the west, the Brazilian central plateau to the south, and the Atlantic Ocean to the east.
The Amazon Forest is one of the richest areas on the planet in biodiversity and natural resources, concentrating close to 30% of the known species of the planet’s flora and fauna in an area of 5.5 million square kilometres. Its preservation is, therefore, crucial for the ecological balance and is an important factor in the climate changes the planet has been facing.
Know the characteristics and features of Tropical Rainforests at the linked article.
Objectives of Amazon Fund
The Amazon Fund is used to assist any project which is working on the following areas:
- Management of public forests and protected areas
- Environmental control, monitoring and inspection
- Sustainable forest management
- Economic activities created with sustainable use of the vegetation
- Ecological and economic zoning, territorial arrangement and agricultural regulation
- Preservation and sustainable use of biodiversity
- Recovery of deforested areas
Learn more about the Green Climate Fund at the linked article.
Who manages the Amazon Fund?
Although the Amazon Fund was created by the government and is managed by a public bank, it is a private fund. Since its inception in 2009, the Fund has supported over 100 projects.
The Brazilian Development Bank (BNDES) manages the fundraising, manages the fund’s finances, promotes the fund’s development, financial management and fund development, manages project selection, contracting, monitoring, and ex-post evaluation, among other activities.
Apart from BNDES, Amazon Fund’s decision-making structure is based on guidance and a technical committee:
- Amazon Fund Guidance Committee (COFA) – It is responsible for establishing the guidelines of the Amazon Fund, monitoring information, and ensuring that all the initiatives supported by the Amazon Fund are in line with those established in the PPCDAm and ENREDD+
- Amazon Fund Technical Committee (CTFA) – The Technical Committee of the Amazon Fund (CTFA) validates the official figures regarding carbon emissions from deforestation, as calculated by the Ministry of the Environment (MMA), in order to determine how much funding may be raised for the next year
Reducing emissions from deforestation and forest degradation (REDD+) is a mechanism developed by Parties to the United Nations Framework Convention on Climate Change (UNFCCC). It creates a financial value for the carbon stored in forests by offering incentives for developing countries to reduce emissions from forested lands and invest in low-carbon paths to sustainable development.
About UN-REDD Programme
The UN-REDD programme assists countries to develop the capacities needed to meet the UNFCCC’s REDD+ requirements so that they can qualify to receive results-based payments under the Convention.
Frequently asked Questions about Amazon Fund
What is the Amazon Fund?
What is the critiscism regarding the Amazon Fund?
Aspirants preparing for the upcoming Civil Services Exam can review the UPSC Syllabus for the prelims and mains examination at the linked article and start their preparation accordingly.
For any further exam updates, study material or preparation tips, turn to BYJU’S for assistance.