Brazil has created an international fund to fight deforestationof the Amazon and is accepting contributions to help preserve the world’s largest rainforest. Brazilian President Luiz Inacio Lula da Silva signed a decree creating the Amazon Fund, designed to receive up to 21 billion dollars in contributions over the next 13 years. Donations will be administered and projects monitored by the National Economic and Social Development Bank. The money in the fund will also finance conservation and durable development projects proposed by the Ministry of Environment.
The limit for contributions in the first year has been set at one billion dollars. Norway will be the first donor to step up, pledging 100 million dollars. Donors will not receive any benefits in return for their contributions such as tax exemptions or carbon credits.
This fund was created as a result of critisism that the Brazilian government was not giving enough funding to environmental groups. Up to 20 percent of the fund’s cash can go to preserving Brazilian ecosystems besides the Amazon rainforest and even in other tropical countries.