Promoting Sustainable Investments and the Bioeconomy in the Legal Amazon

In recent years, the Brazilian Amazon and its tropical forests have drawn increasing international attention, due to the global climate and biodiversity crises and the serious consequences that could result from their destruction.

Ending deforestation and keeping the forest standing does not hinder the region’s development—on the contrary. While a “business as usual” scenario would lead to irreversible environmental damage and economic collapse, there is an opportunity to support a new development model that creates jobs, generates income for local populations, protects nature, improves quality of life, and contributes to achieving global climate targets.

Expanding the region’s existing bioeconomy—a sustainable economic model based on the use of renewable biological resources to produce food, industrial goods, and other bioproducts—can transform the socioeconomic profile of the Amazon while valuing the traditional knowledge of local communities.

To support this objective—aligned with the Brazil–France bilateral agenda on bioeconomy and tropical forest protection—significant public and private investments are needed. Recognizing the high potential of the bioeconomy to build a sustainable future and foster income generation and redistribution, Banco da Amazônia and AFD have committed to developing innovative and adapted financial instruments.

Focusing on supporting and promoting economic activities across the nine federal states of the Amazon region, Banco da Amazônia is committed to sustainable economic and social development while preserving the forest’s natural wealth.

As part of the AMABIO initiative, AFD will grant Banco da Amazônia a €80 million loan, combined with investment and technical assistance grants, to boost bioeconomy value chains and support sustainable investments in the region.

The project will help improve access to decent jobs and basic services for Amazonian communities through investments that contribute to biodiversity conservation and better living conditions.

Investments in areas such as water supply, sanitation, and waste management will enhance the climate resilience of local populations and help reduce greenhouse gas emissions.

The grant component will also support income-generating activities for local communities and vulnerable groups.