Banks will block loans to slaughterhouses that buy cattle from deforested areas

The main Brazilian banks have made a commitment that, from 2026 onwards, they will only grant loans to slaughterhouses and slaughterhouses that have implemented tracking systems in their supply chains to prove that they do not buy cattle from illegally deforested areas in the Amazon and also in the State of Maranhão.

Posted by

Isabella Caminoto

May 30, 2023 12:35 PM

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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).

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.

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.

EU approves law for 'deforestation-free' trade

The European Council approved this Tuesday (16) a new law to bar, in the European Union (EU), the consumption and trade of commodities and other products that have caused deforestation and human rights abuses. The regulation establishes new rules for the sale, in the region, of palm oil, cattle, wood, coffee, cocoa, rubber and soy, as well as derivative products such as chocolate, furniture and printed paper.

Read also

Research reveals that deforestation threatens the Atlantic Forest

The Atlantic Forest suffered the felling of 20.075 hectares (ha) of forest in the period of one year, between October 2021 and 2022, corresponding to more than 20 thousand football fields. The data comes from the Atlantic Forest Atlas, research carried out by the SOS Mata Atlântica Foundation, in partnership with the National Institute for Space Research (INPE).

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This post was last modified on May 30, 2023 12:59

Isabella Caminoto

Lawyer and master's student in International Law, I have democracy and freedom as undeniable flags. I am passionate about animals and believe that the well-being of our planet should be the daily highlight of our society's agenda.