First At-Scale Impact investment fund for the Amazon focusing on biodiversity conservation gets Presidential buy-in
U.S. President, Donald J. Trump met with the recently elected Brazilian President, Jair Messias Bolsonaro, at the White House on March 19, 2019. The two leaders discussed a series of bilateral and global issues, also focusing on the build up of a more prosperous, secure and democratic Western Hemisphere. They signed a Joint Declaration in which they committed to a new partnership centered in increasing the prosperity and security, as well as promoting democracy, freedom and sovereignty. On the occasion, the two presidents announced their plans to work together towards the creation of the first-ever biodiversity-focused impact-investment fund for the Amazon.
In support of this announcement, the day prior, USAID Administrator, Mark Green, and the Brazilian Secretary of the Office of International Relations, Roberto Castelo Branco, signed a Letter of Intent to work towards the launch of the fund that will seek to leverage $100 million in private investments over a 10 year period to finance hard-to-reach, high-risk sectors with the potential to create successful and scalable impact businesses aligning conservation of forests and biodiversity. This is the first fund of this kind, using significant, commercial impact investors to advance joint conservation goals in the Amazon and both countries see this as a potential future model for partnering. While it is currently under design and the structure not confirmed, a proposed structure is in the diagram below.
For USAID/Brasil’s Director, Michael Eddy, “partnering with the private sector is fundamental to create long lasting impact that helps conserve biodiversity. The US and Brazil have been partners for decades in conservation and this will be a new step in helping to create a new, sustainably-based economy.”
The Amazon is critical to Brazil and the planet, but threats to the forest have increased in recent years. Working with the Government of Brazil and our Brazilian partners, USAID helps to conserve biodiversity by strengthening protected areas management and forest-based value chains. However, these alone are not enough. Engaging the private sector to foster a new model of economic development that has conservation and socio-economic improvement for local populations at its core can alleviate pressures and become part of the solution. Bringing in new financial partners willing to invest, with catalytic support from the United States and a strong enabling environment from the Government of Brazil, is a key to the future.
Read the full letter of Intent
Learn more about the Partnership for Conservation of Amazon Biodiversity
More about USAID/Brazil work with the private sector