What’s behind the recent surge of Amazon deforestation? ‘If you cleared illegally, you got away with it. And the expectation is that if you clear illegally now, sooner or later there will be another amnesty.’

Desdemona Despair

By Richard Schiffman
9 March 2015

(Yale Environment 360) – Ecologist Philip Fearnside has lived and worked in the Brazilian Amazon for 30 years and is one of the foremost authorities on deforestation in the world’s largest tropical forest. A professor at the National Institute for Research in the Amazon, Fearnside has focused his work on how to sustainably develop the Amazon in the face of enormous pressures to cut and clear the forest.

Fearnside is now watching with alarm as, after a decade of declining deforestation rates, the pace of cutting and forest clearing in the Amazon is on the rise again. In an interview with Yale Environment 360, Fearnside explains the factors behind the resurgence in deforestation, including a slowly improving global economy, rising commodity prices, and recently enacted Brazilian laws and policies that are encouraging the development of the Amazon. Fearnside warns that this great tropical forest will sustain even graver losses if Brazil’s newly re-elected President Dilma Rousseff — who is backed by large landowners and agribusiness interests — doesn’t change course.

Yale Environment 360: Deforestation is now rising dramatically in the Brazilian Amazon. When did this begin?

Philip Fearnside: Deforestation went up a bit — they call it the hiccup — in 2013, but now in just the past six months there has been an explosion. Deforestation, as measured from images taken by Brazil’s DETER satellite system, far more than doubled from September 2014 through January 2015 over what it had been during those same months a year earlier.

The government hid these figures before the recent election. The August and September data would normally have been released in October [before the October 26th presidential election]. But they sat on the data, and it was not disclosed until the end of November. It’s a scandal.

e360: This comes as a surprise to many observers who thought that Brazil had the deforestation problem under control. Rates of deforestation actually declined from 2004 until 2012. How do you account for these earlier declines?

Fearnside: The exchange rate with the Brazilian real hit a peak in 2002. From almost 4 reals to the dollar, it went all the way down to 1 ½, which means if you are exporting things like soybeans or beef, all your expenses are in reals and you get paid in dollars, and they are worth half as much in Brazil, so it’s not nearly as profitable. At the same time, you had international commodity prices going down. The soybean peak was in 2003, it crashed in 2007, and beef prices were in a similar downward trajectory. Those two factors — the exchange rate and commodity prices — together explain basically all of the decrease in deforestation until 2008.

e360: What happened after 2008?

Fearnside: From 2008 to 2012, commodity prices recovered. The exchange rate didn’t recover until the end of that period. But what changed in 2008 was a Central Bank resolution that ties financing for agriculture and ranching — to buy tractors and fertilizers and such — to having a clean record with the environment department, IBAMA. If you have cut the forest illegally and have an unpaid fine, you don’t get financing. This blocking of credit is something with real teeth in it, and there are no appeals. It had a big effect, especially on the large landowners. So commodity prices recovered and yet deforestation still stayed low.

e360: So now deforestation rates are rising sharply. How do you explain this dramatic change?

Fearnside: One factor is the new Forest Code, which became law in 2012. It weakens critical environmental protections and also offers an amnesty for all those who violated environmental laws before 2008. So if you cleared illegally, you got away with it. And the expectation is that if you clear illegally now, sooner or later there will be another amnesty that will forgive your past crimes. On the other hand, if you actually obeyed the law, you lost money. So the incentives are very perverse.

Another thing is that the prices for soy and beef are now high, and the exchange rate has been going up in the past few months, making it more profitable. These are the big factors that are leading to more deforestation. [more]

What Lies Behind the Recent Surge of Amazon Deforestation