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A group of investors, led by the Norwegian investment and pension fund, Storebrand, has written to Brazilian embassies warning that rising deforestation in the Amazon is creating uncertainty about the conditions for investing in Brazil.
The warning is timely – with the Brazilian government still looking to pass legislation to encourage the development of forested lands – and reflects the growing financial risks associated with investment in activities linked to tropical deforestation, which is worth hundreds of billions of dollars each year.
The letter urges the Brazilian Government to do more to reduce deforestation, but what can the financial institutions themselves do to minimise the risks they face? How can they ensure their investments and loans are not financing activities that are driving deforestation in the …