GCF’s new Amazon Bioeconomy Fund in six Amazon countries (Brazil, Colombia, Ecuador, Guyana, Peru and Suriname) will deliver sustainable solutions to reduce the impacts of climate change in the Amazon biome by prioritizing natural capital and delivering climate benefits. The USD 600 million programme will include an investment of USD 279 million from GCF, and will be implemented with the Inter-American Development Bank. It will encourage private investment in six key areas of the bioeconomy: sustainable agroforestry, native palm cultivation, non-timber natural forest products, growing native species timber, aquaculture, and community-led nature tourism.

Home to the world’s largest tropical forest, the Amazon is highly vulnerable to climate change. The combination of increased temperatures and deforestation are creating adverse climate feedback loops. Increasingly warmer and drier conditions will further result in forest degradation and loss of ecological functions, ultimately bringing the Amazon forests to the point of no return. Known as the tipping point, there may come a time when the forests die and are replaced by dry savannah-like landscapes. This would have grave consequences on biodiversity, agriculture, human health and livelihood, and would also affect the Amazon’s key role in absorbing and storing the world’s carbon.