Lula and Macron announce 1 billion euro investment program in the bioeconomy of the Amazon in Brazil and Guyana | Policy

President Luiz Inácio Lula da Silva (PT) and the President of France, Emmanuel Macron, announced this Tuesday (26) a program that intends to invest 1 billion euros in the bioeconomy of the Brazilian Amazon and French Guiana, an overseas territory of France in South America.

According to a joint statement from the Brazilian and French governments, investment will be made over the next four years and will involve collaboration between Brazilian public banks and the French Development Agency. In addition, there is a forecast of private investment in the project.

According to both governments, the plan will have several key components:

▶️dialogue between the French and Brazilian administrations on the challenges of the bioeconomy;

▶️technical and financial partnership between Brazilian public banks, including BASA and BNDES, and the French Development Agency, present in Brazil and French Guiana;

▶️appointment of special coordinators for the most innovative French and Brazilian companies in the field of bioeconomy;

▶️a new scientific agreement between France and Brazil, operated by CIRAD and Embrapa, which will enable the development of new research projects on sustainable sectors, including in French Guiana;

▶️creation of a hub for research, investment and sharing of key technologies for the bioeconomy, which could be supported by the strengthening of the Franco-Brazilian Center for Amazonian Biodiversity (CFBBA) and the formation of networks of French and Brazilian universities that can contribute for these themes.

Brazil and France also stated that women, men and children from indigenous peoples and local communities will participate in investment decision-making

Furthermore, they announced that they will promote, within the scope of the Brazilian presidency of the G20, a major global, public and private investment plan for the bioeconomy.

Investments should be mainly directed towards:

▶️conservation and sustainable management of forests and the planning and economic valorization of ecosystems and forest areas;

▶️technologies based on biological resources, agroecological practices and traditional knowledge;

▶️training courses, job creation and research necessary to develop sustainable industries, with high potential in domestic and foreign markets, in all sectors of the forestry economy;

▶️sustainable management and/or restoration of forests and biodiversity.

The Brazilian and French governments also declared that they defend “the highest standards for the establishment of a carbon market capable of remunerating forest countries that invest in the restoration of natural sinks”.

Brazil and France said that the promise of Article 6 of the Paris Agreement to establish an effective carbon market regulated by the United Nations must be fulfilled.

Lula and Macron asked governments to finalize negotiations to establish this market as quickly as possible. According to them, the structuring of carbon credit trading can make it possible to finance projects with high environmental and social integrity in countries that invest most in the protection and restoration of their forests.

The two presidents also stated that they will jointly promote partnerships around the world to finance the protection of tropical forests and biodiversity and new instruments to finance such protection around the world.

According to the document from the two countries, France and the United Kingdom proposed that Brazil appoint a new member to the International Biodiversity Credit Panel, bringing to two the number of Brazilian members in this initiative, which aims to define a framework to monitor development of market instruments capable of encouraging the financing of biodiversity protection and restoration by the private sector.