Protecting the Amazon is pivotal in the global fight against rising temperatures. As the first Black woman to lead the second-largest bank in Latin America in over two centuries, I firmly believe that financial institutions play a crucial role in transitioning to a low-carbon economy. To counter deforestation, we must create sustainable economic opportunities for the Amazon's inhabitants.
As leaders converge in New York for the 78th session of the UN General Assembly, we have a vital opportunity to come together and assess the strategies employed by governments, investors, and companies. We must prevent the Amazon from reaching a point of no return. Scientists warn that 26% of the Amazon has already undergone severe degradation, rendering forest rehabilitation an immense challenge.
To reverse this alarming trend, it's essential to restore pastures with varying degrees of degradation so that agricultural activity doesn’t grow at the expense of the rainforest. Investments are set to allow us to nearly double the country's cultivated area, expanding it from 128 million acres to over 222 million acres in the next decade.
Today, renewable sources account for 83% of Brazil's electricity matrix. The country’s capacity to generate carbon credits holds the potential to yield approximately 577 billion reals by 2030. We have been at the forefront of a global campaign for decarbonization, with major corporations playing a pivotal role in hastening progress.
The institution I lead boasts one of the most substantial portfolios of sustainable businesses globally. I am traveling to New York to engage in discussions with external investors and multilateral organizations. The aim is to forge alliances and secure funding for environmental protection. Leveraging the progress of ongoing operations and negotiations, I plan to secure over 23 billion reals (circa $5 billion) for the Brazilian market in collaboration with global development banks in the first half of 2024. These funds will support initiatives related to climate finance, renewable energy, energy efficiency, and environmental restoration.
As a financial institution based in Brazil, our ambition is to set an example of environmental responsibility across all biomes, particularly the Amazon. Our unwavering commitment is not only to preserve the forests and rivers but to also enhance the quality of life for local residents.
The world’s largest rainforest spans eight South American countries, including Bolivia, Guyana, Suriname, Colombia, Ecuador, Peru, and Venezuela. In August, Brazil hosted a conference aimed at bolstering regional cooperation among Amazon nations.
And we are not alone. At the Amazon Summit, we joined the Green Coalition, a collaborative effort of several Brazilian banks working to find financial solutions that support inclusive and sustainable productive activities.
In addition to the numerous discussions revolving around credit and investment negotiations in the capital market, we need an economy that can be both compassionate and inclusive. To this end, we proudly support three major human rights movements of the Global Compact Network Brazil, focusing on gender equality, inclusion of Black and indigenous populations, and fair wages.
As we address the Amazon's challenges, we must remain committed to social development. Banks must seek to harmonize financial returns for shareholders with social and environmental advancements to reduce inequality.
Tarciana Medeiros is the CEO of Banco do Brasil, a government-owned Brazilian bank. Medeiros is the first woman president of Brazil's oldest bank, Banco do Brasil (BB), the second-largest bank in Latin America.
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