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A recent World Economic Forum panel about the Amazon’s transition to a sustainable bioeconomy asked what financial instruments would be needed to harness its potential to benefit people and nature.
But before we decide on how to prioritise nature-positive financial mechanisms - such as debt-for-nature swaps and debt forgiveness - we must first ask: What needs to be dismantled?
If we are to protect the Amazon, no financial instruments require dismantling more urgently than those that support the global trade in crude oil. Bank finance, both transaction-based trade finance approaches and loans and revolving credit facilities (RCFs), are its lifeblood, providing billions of dollars that create liquidity for oil traders to make deals, drive demand and even fund new oil expansion. Banks who support the oil trade risk oversh…