Mighty Earth is calling for the urgent repeal of a newly enacted law by the government of Mato Grosso that jeopardizes the Amazon Soy Moratorium, a crucial initiative for protecting the Amazon rainforest. This legislation, which restricts tax benefits for companies adhering to the Moratorium, poses a significant risk to both environmental conservation efforts and corporate commitments to deforestation-free practices.
As Brazil’s largest soybean-producing state, Mato Grosso’s actions undermine the Soy Moratorium and threaten the integrity of corporate Deforestation and Conversion Free (DCF) commitments. Mighty Earth demands not only the repeal of this law but also the establishment of robust mechanisms to ensure the continuation of the Moratorium and its potential extension to the Cerrado region.
Approved by Governor Mauro Mendes and supported by many state deputies, this regulation is viewed as a major setback. It utilizes public economic power to weaken one of the most effective voluntary agreements of the 21st century aimed at safeguarding tropical forests. The new law penalizes not only signatory companies but also local farmers committed to sustainable agricultural practices, favoring a small group of rural producers intent on expanding their operations at the expense of the Amazon.
Established in 2006, the Soy Moratorium has been instrumental in curbing deforestation linked to agribusiness. This voluntary agreement commits major soy traders—including Cargill, Bunge, ADM, Amaggi, COFCO, Cutrale, and Louis Dreyfus—not to purchase soy from areas deforested after July 2008. Prominent consumers such as Carrefour and McDonald’s rely on this commitment to ensure their supply chains remain free from Amazon deforestation.
Most signatory companies have pledged to eliminate deforestation from their supply chains in the coming years. Eroding the Soy Moratorium threatens these commitments, which are essential for combating biodiversity loss and climate change while striving to keep global temperature rise within 1.5 degrees Celsius.
The weakening of this critical agreement raises doubts about Brazil’s agricultural production regarding environmental commitments and diminishes international trust in the origins of Brazilian soy. This situation contradicts global regulations like the European Union Deforestation Regulation (EUDR), which mandates transparency and traceability in supply chains.
The effectiveness of the Soy Moratorium is recognized globally; between 2009 and 2022, deforestation in 76 municipalities responsible for 98% of soy production in the Amazon decreased by 69%. However, recent reports indicate ongoing deforestation linked to soy cultivation. Mighty Earth’s latest Soy Rapid Response report revealed alarming data connecting over 30,000 hectares of deforestation in the Amazon between September and December 2023 with major global traders’ soy production.
Mighty Earth emphasizes that instead of rolling back progress made over nearly two decades, it is imperative to strengthen and expand the Soy Moratorium to ensure lasting protection for both the Amazon rainforest and sustainable agricultural practices.
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