The definition is part of a self-regulation standard approved by the Brazilian Federation of Banks (Febraban) that has been under study since last year and which had its early release by the newspaper Estadão on Monday night (29).
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EXCLUSIVE 🔴 Banks will not give credit to slaughterhouses that buy cattle from deforested areas; see list of institutions https://t.co/aOFH12k8M8 (via @EstadaoEconomia) pic.twitter.com/l5wYvdXLJF
— Estadão 🗞️ (@Estadao) May 29, 2023
Adhesion by financial institutions to the standard is voluntary. So far, 21 banks have signed the protocol, including: Itaú Unibanco, Bank of Brazil, Bradesco, Santander e CEF
Banks that have already adhered to self-regulation will have to require their customers to implement a traceability and monitoring system until December 2025. In other words, only those who meet the requirement will have loans from these 21 financial institutions.
It is worth remembering that livestock farming is today the main rural activity associated with deforestation, and Brazil is the world's largest exporter of meat.
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The initiative to stop the consumption and trade of commodities and other products that have caused deforestation is already a reality. This month, the European Union (EU) approved a regulation that stipulates that traders will have to verify that items were produced on soil that has not suffered deforestation or forest degradation.
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