EconomyMarkets

France’s BNP to stop financing firms farming deforested land in the Amazon By Reuters

© Reuters. FILE PHOTO: An aerial view shows the Amazon rainforest near the city of Novo Progresso

PARIS (Reuters) – France’s largest bank BNP Paribas (OTC:) pledged on Monday to stop financing firms producing or buying either beef or soybeans cultivated on land in the Amazon (NASDAQ:) cleared or converted after 2008.

The lender also said it would encourage clients not to buy or produce beef or soy farmed in the Cerrado, a vast tropical savanna eco-region covering 20% of Brazil, only financing those which adopt a strategy of zero deforestation by 2025.

Environmental campaign groups said BNP Paribas’ move sent a strong signal to companies trading commodities in the region, but pressed for faster action.

“Financial institutions exposed to the agricultural sector in Brazil must contribute to this fight against deforestation. This is the case for BNP Paribas,” the bank said in a statement.

Soy and beef are two of the largest drivers of global deforestation. Population growth and rapidly expanding middle classes in countries like China have fueled an explosion in demand for soy and increases in consumption of meat and dairy.

Some scientists warn the Amazon forest, which spans nine countries, is hurtling towards a death spiral as deforestation continues apace. An area of Amazon rainforest the size of Israel was felled last year, according to Amazon Conservation.

Half of the Cerrado has already been cleared and is one of the planet’s most threatened ecosystems, four environmental NGOs said in a joint statement.

“BNP Paribas is giving traders five more years to clear forests with impunity,” Klervi Le Guenic of Canopee Forets Vivantes said.

BNP and other European lenders including Credit Suisse (SIX:) and Dutch bank ING committed last month to stop financing trade in from Ecuador after pressure from activists aiming to protect the Amazon.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Source link

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button