THE Inter-American Development Bank (IDB) earlier this month announced a technical cooperation agreement with the Brazilian Forest Service (SFB) and the National Bank for Economic and Social Development (BNDES) to support the structuring of public-private partnership (PPP) projects to sustainably manage subnational environmental assets in the Brazilian Amazon.

The non-reimbursable technical cooperation of $1 million is funded by the Green Climate Fund (GCF), through the IDB’s Amazonia Forever programme. The cooperation will focus on helping structure subnational PPP projects for forest conservation and the recovery of degraded areas, including profiling, pre-feasibility, and feasibility studies, as well as the drafting and structuring of bidding documents and contracts.

“This technical cooperation will continue the close collaboration between the three entities, leveraging lessons learned in structuring projects to restore and maintain key areas such as the Bom Futuro National Forest,” highlighted Renato Rosenberg, director of concessions and monitoring at SFB.

Gastón Astesiano, head of the IDB’s PPP Single Window, said: “The 2023 legal change in the Brazilian public forest management for sustainable production law allows payment of environmental services in forest concessions. This represents a unique opportunity to encourage private sector participation in forest restoration projects.”

This forest concession model could generate investments of up to R$60 billion (approximately $12 billion) in the coming years, developing a new production chain for the care and regeneration of degraded areas in the country.

This project’s subnational focus will allow for the recovery of vegetation in degraded areas of the Amazon, improved soil management, and sustainable and innovative forestry practices. Additionally, it aims to promote the bio-businesses and environmental services aligned with the IDB’s Amazonia Forever programme, emphasizing sustainable and inclusive development in the region.

“The IDB Group dedicates teams, resources, and efforts to the structuring of concessions for the management of environmental assets in Latin America and the Caribbean, supporting projects that seek to reduce deforestation, promote forest restoration, and improve the living conditions of local communities. We are convinced that public-private partnerships are a powerful tool to enable sustainable environmental management and bring direct benefits to communities,” said Morgan Doyle, IDB representative in Brazil.

The announcement was made at the event “Forest Concessions in Brazil: Building Synergies for the Conservation of the Amazon,” in Manaus, in parallel to the 2024 Sustainability Week, organised by IDB Invest, the private-sector arm of the IDB Group. This is considered the most significant sustainability event for the private sector in Latin America and the Caribbean. (IDB)