Generic Hero BannerGeneric Hero Banner
Latest market news

Deforestation in Brazil's Amazon plunges 31pc

  • : Emissions
  • 24/11/07

Deforestation in Brazil's Amazon biome plunged by around 31pc over the 12 months ending in July — the sharpest decline in over 15 years — bringing the country closer to meeting its target of eliminating deforestation in the region by 2030.

Brazil lost 6,288km² (2,404mi²) of Amazon rainforest from August 2023-July 2024, a 31pc decline from 9,064km² in August 2022-July 2023, according to the science and technology ministry's national space institute INPE. The fall in deforestation marks the third consecutive decline in deforestation in the Amazon, after devastation in the region reached a multi-year high of 13,038km² in 2020-21.

With the decline, deforestation in the biome reached its lowest level since 2015, when the region recorded losses of 6,207km².

Deforestation fell steeply in all of the largest states in the legally defined Amazon region — known as Legal Amazon — except for Roraima, according to data compiled by the Amazon deforestation satellite monitoring system (Prodes).

The Legal Amazon contains the nine states in the Amazon basin: Acre, Amapa, Amazonas, Para, Rondonia, Roraima and Tocantins, as well as most of Mato Grosso and Maranhao states. It contains all of Brazil's Amazon biome, 37pc of the cerrado tropical savanna biome and 40pc of the pantanal biome.

Para state continued to lead in deforestation with 2,362km², accounting for 37.5pc of total deforestation in the biome. But this year's figure was 28pc lower than the 3,299km² in the prior period.

Amazonas state posted the second largest deforestation in the period, with losses reaching 1,143km², accounting for 18pc of the total area of forest lost. Deforestation there fell by 29pc in the 2023-24 cycle from a year earlier.

Mato Grosso, Brazil's largest grain-producing state, cut 1,124km² of forests, down by 45pc from the 2,048km² in the previous cycle.

The government attributed the decline to increased oversight in the region, with the number of fines issued for illegal deforestation nearly doubling from 1 January 2023 — when president Luiz Inacio Lula da Silva took office — and October this year, compared with the period between January 2019-December 2022.

The government also highlighted that deforestation was down in 78pc of the 70 municipalities that were declared priority regions by the administration earlier this year. The government announced R730mn ($129mn) in funding to reduce environmental devastation in these municipalities in April.

The government also reduced deforestation in the cerrado by nearly 26pc to 8,174km² in the period. That is the lowest level since 2019 and the first time deforestation in the biome has declined in four years.

With the reduction in deforestation, Brazil's 2023 emissions fell by 12pc to 2.3bn tons of CO2 equivalent (t CO2e) from 2.6bn t CO2e in 2022, according to Brazilian climate think tank Observatorio do Clima.


Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

25/07/08

EU proposes support package for chemicals sector

EU proposes support package for chemicals sector

Brussels, 8 July (Argus) — The European Commission today proposed a package of measures to support the EU chemicals sector, aiming to address high energy costs, global competition and weak demand. The plan includes extending emissions trading system (ETS) compensation to more producers and simplifying fertilizer registration rules. The commission said the simplification measures could save the sector €363mn/yr. The proposals are part of a broader action plan to boost competitiveness and secure supply chains. A new Critical Chemicals Alliance will identify key production sites in need of policy support, including on trade issues such as supply chain dependencies and market distortions. The commission also pledged to apply trade defence measures more quickly and expand chemical import monitoring under an existing surveillance task force. While the commission stopped short of proposing a Critical Chemicals Act — which would legally define specific chemicals for support — it named steam crackers, ammonia, chlorine and methanol as "essential" to the EU economy. The alliance will aim to align investment and co-ordinate support, including through the bloc's Important Projects of Common European Interest (IPCEI) programme. The commission also decided on new rules legally defining low-carbon hydrogen today and said it plans to allow more state aid for electricity-intensive chemical producers by the end of the year. It also encouraged the use of carbon capture, biomass, waste and renewables. EU industry commissioner Stephane Sejourne said the action plan uses "all levers" to put the chemicals sector back on a growth track, with measures to retain steam crackers and other key chemical assets in Europe. He also highlighted efforts to secure domestic demand for "clean and made-in-Europe chemicals". The commission will align fertilizer registration rules with the EU's REACH chemicals framework, applying standard REACH provisions and streamlining the assessment of micro-organisms used in fertilizers. Officials said the changes will maintain safety and agro-economic efficiency standards while allowing a broader range of micro-organisms. For ETS indirect cost compensation, the commission plans to expand the list of eligible chemicals — including organic chemicals and fertilizers — but must first update existing state aid guidelines, a senior EU official said. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Multilateralism should steer climate finance: Brics


25/07/07
25/07/07

Multilateralism should steer climate finance: Brics

Sao Paulo, 7 July (Argus) — Developed countries must fully engage in climate finance to support developing countries trying to meet Paris agreement goals, top Brazilian officials said at the Brics summit held in Rio de Janeiro on 6-7 July. "One decade after the Paris agreement, [the world] lacks resources for a fair and planned transition," Brazilian president Luiz Inacio Lula da Silva said. "Developing countries will be the most affected by losses and damages, while they are also the ones that have fewer ways to fund mitigation and adaptation," Lula da Silva said during his keynote address Monday. The Brics summit discussed climate finance in anticipation of the UN Cop 30 climate summit , which will be also be held Brazil, in November. The group issued a declaration that reinforced its commitment to uphold multilateralism as a solution for climate actions, while it also emphasized developed countries' responsibility towards developing countries to financially enable just transition pathways and sustainable development aligned with the Paris agreement. The Cop 29 summit in Baku, Azerbaijan, in November 2024 managed to reach an agreement to allocate $300bn/yr in resources for climate action. But delegates to the upcoming UN Cop 30 summit are targeting at least $1.3bn/yr in public and private funds to tackle climate change, focusing especially on countries that are already dealing with extreme weather conditions and lack financial resources to mitigate it. The Brics also announced a memorandum of understanding on the Brics Carbon Markets Partnership focused on capacity building and multinational cooperation to support climate strategies such as mitigation efforts and emergency resource mobilization. The declaration opposes unilateral protectionist measures, arguing that they "deliberately disrupt the global supply and production chains and distort competition." Climate justice, the fight against desertification, strengthened climate diplomacy and subsidies to environmental services were the main topics of discussion during the Brics summit, Brazil's environment minister Marina Silva said. Brazil will launch its own initiatives to promote climate finance in Cop 30. One program already launched is the Tropical Forest Forever Facility (TFFF) fund that aims to raise $125bn to preserve 1bn hectares of global tropical forests across 80 developing countries. Brics' development bank NDB will target 40pc of its investments to promote sustainable development, such as energy transition. The bank has approved $40bn in investments for clean energy, environment protection and water supply, it said last week. Brazil accounts for $6.4bn of total investments, gathering resources to 29 projects under climate actions, according to the institution. Brazil currently holds the presidency of the Brics, which also includes Russia, China, India and South Africa. Saudi Arabia, Egypt, UAE, Ethiopia, Indonesia and Iran are also members. Belarus, Bolivia, Kazakhstan, Thailand, Cuba, Uganda, Malaysia, Nigeria, Vietnam and Uzbekistan act as partner nations. Heated speech During his keynote address, Lula criticized the International Monetary Fund (IMF) as an institution that promotes unilateralism and stressed his support for reforming institutions of the UN to promote multilateralism and political equity for developing countries. He also mentioned that 65 of the biggest banks in the world committed to a $869bn investment to the fossil fuels sector last year. "Market incentives run contrary to sustainability," he said. By João Curi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

NGOs pitch Amazon preservation funding to Cop 30


25/07/04
25/07/04

NGOs pitch Amazon preservation funding to Cop 30

Sao Paulo, 4 July (Argus) — Non-governmental organizations (NGOs) in Brazil's northern Amazon region set up a plan to draw investments to conservation, restoration and sustainable development in the biome. The plan — submitted to the UN Cop 30 climate summits presidency on 4 July — suggests redirecting subsidies from high-greenhouse gas emission activities to sustainable projects and promoting environmental services, as well as fighting against illegal economic practices such as animal trafficking and property speculation of public lands, according to the NGOs. The Amazon gathered around $5.8bn in investments between 2013-22, while it is worth at least $317bn/yr in ecosystem services, such as climate regulation — vital for agriculture and hydroelectric power generation — and biodiversity, according to the World Bank. The institution also estimated that $7bn would be necessary to preserve the biome against deforestation and ward it off from the tipping point, when it would suffer permanent damage like desertification and severe changes in the rainfall pattern. Main financial resources for the plan may come from the Tropical Forest Forever Facility (TFFF) initiative, which Brazil launched in 2023 to raise funds to protect tropical forests and combat deforestation, the NGOs said. Considering the program's annual raising of $5bn, the groups expect that $2bn of it will fund the Amazon forest preservation. Another proposal includes the creation of a Global Declaration for Amazon to engage countries enrolled in the UN Framework Convention on Climate Change (UNFCCC) in contributing to strengthen the biome against climate change. Brazil will host UN Cop 30 climate summit in November, when it expects to deliver a roadmap to increase global climate finance to $1.3 trillion/yr. By João Curi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Cbio: ANP atrasa divulgação da lista


25/07/04
25/07/04

Cbio: ANP atrasa divulgação da lista

Sao Paulo, 4 July (Argus) — A Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP) recuou na divulgação da lista de distribuidoras inadimplentes à Política Nacional de Biocombustíveis (Renovabio). Apesar do anúncio inicial de que a lista seria divulgada em 7 de julho, a ANP agora afirma que isso deve ocorrer "em breve", mas sem previsão de data exata. Após a publicação, a venda de combustíveis a essas empresas gerará multa até que regularizem sua situação. O atraso ocorre após uma postagem na rede social X da ANP, que anunciou a divulgação da lista em 7 de julho. A postagem foi posteriormente apagada. Por Rebecca Gompertz Envie comentários e solicite mais informações em feedback@argusmedia.com Copyright © 2025. Argus Media group . Todos os direitos reservados.

Carbon – In Focus: Article 6 out of ETS in EU proposal


25/07/04
25/07/04

Carbon – In Focus: Article 6 out of ETS in EU proposal

London, 4 July (Argus) — The European Commission will allow international carbon credits to contribute to the bloc's 2040 climate target, but will exclude their use in the EU emissions trading system (ETS), temporarily allaying fears of a potential carbon market impact, although questions around solutions to the ETS' diminishing allowance supply persist. The commission's proposal to cut EU greenhouse gas emissions by 90pc by 2040 compared with 1990 levels would, from 2036 onwards, allow up to 3pc of the goal to be met using international carbon credits issued under Article 6 of the Paris climate agreement. But contrary to speculation since the commission's director-general Kurt Vandenberghe indicated last month that the goal would include "flexibilities", it does not envisage integrating the offsets into the EU ETS. "These international credits should not play a role for compliance in the EU carbon market," the proposal states. The text must still be negotiated by the European Parliament and EU member states before its adoption, but the commission's approach is likely to have provided some initial reassurance to EU ETS participants, which may have feared the inclusion of credits could undermine the market. A study by research body the Oeko-Institut published last month warned that introducing Article 6 credits to the ETS "poses significant risks to the functioning and environmental integrity of the system". CDM impacts linger The concerns are not without precedent. Until 2020, participants were permitted to meet part of their ETS compliance obligations using international carbon offsets issued under Article 6's predecessor, the clean development mechanism (CDM). The high availability of often cheap credits of varying environmental integrity increased the ETS' supply glut last decade, which in turn dampened the signal for companies covered by the scheme to decarbonise. The EU ETS benchmark front-year contract closed at an average of €11.90/t of CO2 equivalent in Argus assessments over the system's third trading phase, from 2013-20. EU carbon market tightens But the market context by the end of next decade will be very different. The system's supply cap is expected to fall to zero by 2039, from 2.04bn allowances in 2013, leading to calls for the integration of instruments — in some cases including international credits — to bring flexibility to the market and avoid forcing sectors with residual emissions to shut down. And Article 6 credits will be more closely regulated than their antecedents, which could support their value and make any interaction between the markets less bearish for EU ETS allowances. At the World Bank's Innovate4Climate conference in Seville, Spain, last month, head of carbon markets at Spain-based bank BBVA, Ingo Ramming, told delegates that the EU needs to overcome reservations about international carbon credits stemming from past CDM experiences if it is to find a solution to the declining ETS supply cap. Political challenges remain Article 6's inclusion in the 2040 target in any form is likely to prove divisive in negotiations on the proposal. A number of EU countries were pushing for the inclusion of Article 6 credits in the goal ahead of the commission's proposal, but some parliamentary groups were quick to signal their disapproval of the approach set out in the text. Leader of the Greens in the parliament Bas Eickhout said he hopes to persuade other parties not to allow international credits into the target, while the S&D group — the second-largest in parliament — warned against their use, terming them "a last resort". By Victoria Hatherick EU ETS front-year contract €/t CO2e Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more