Brazilian bank introduces new policy aimed at fighting deforestation

Brazilian development bank BNDES has announced plans of new policy aimed at helping to stop deforestation.

The company said it will soon require Cattle producers to prove their beef was not raised on illegally deforested land in order to qualify for loans, reports Brazil's Agencia Estado.

It is hoped that the new policy will help deter companies from endorsing deforestation and encourage other banks to follow suit.

As part of the traceability programme, ear tags will be attached to cattle in order to track them from slaughterhouses to ranches.

Brazil's three largest supermarket chains, Carrefour, Pao de Acucar and Wal-Mart, also announced that they would terminate contracts with suppliers that have anything to do with deforestation of the rainforest in Brazil or in any other part of the Amazon.

BNDES's announcement comes after the International Finance Corporation, the private lending arm of the World Bank, recently withdrew a $90 million (£54 million) loan to Brazilian cattle firm Bertin, after it transpired that the company was complicit in the deforestation of the Amazon.

© Copyright

Bookmark this page: