Amazon Soy Pact Collapses, Threatening Amazon Forest

Topic: Environment

A landmark agreement to stop soy farming in the Amazon forest has collapsed. This will lead to at least 1.4 million hectares of extra deforestation in Brazil by 2036. The collapse is due to lobbying from soy farmers and changes in laws.

The Amazon Soy Moratorium was a voluntary agreement between soy traders not to source or finance soy grown on land deforested after July 2008. It started in 2006 and was very successful, reducing deforestation linked to new soy fields to nearly zero.

However, the agreement came under attack from soy farmers who filed a $200 million lawsuit against the traders. Brazilian antitrust authorities also investigated the moratorium's signatories over allegations they were behaving like a cartel. Laws passed by Mato Grosso and other soy-producing states stripped tax breaks from companies that adopted eco-friendly sourcing commitments beyond what the law required.

The collapse of the agreement will lead to at least 1.4 million hectares (3.5 million acres) of extra deforestation in Brazil over the next decade, releasing carbon emissions equal to Canada's annual output. This is equivalent to 745 million metric tons of carbon dioxide, which is comparable to Canada's annual greenhouse gas emissions.

The authors of a report on this issue recommend stronger deforestation enforcement in Brazil and more ethical sourcing by soy importers, including the EU and China.

Why It Matters

This collapse will have serious consequences for the Amazon forest and the climate. It shows how important it is to protect our environment and find sustainable ways to farm and produce food.

Key Facts

• The Amazon Soy Moratorium was a voluntary agreement between soy traders not to source or finance soy grown on land deforested after July 2008.
• The collapse of the agreement will lead to at least 1.4 million hectares (3.5 million acres) of extra deforestation in Brazil over the next decade.
• This is equivalent to 745 million metric tons of carbon dioxide, which is comparable to Canada's annual greenhouse gas emissions.
• The authors recommend stronger deforestation enforcement in Brazil and more ethical sourcing by soy importers.

Key Terms

Deforestation

The removal of trees from an area of land.

Soy Moratorium

A voluntary agreement between soy traders not to source or finance soy grown on land deforested after July 2008.

Implications

This collapse will have serious consequences for the Amazon forest and the climate. It shows how important it is to protect our environment and find sustainable ways to farm and produce food.