Financial mechanisms for conservation in Brazil

Abstract

I reviewed some of the financial mechanisms for biodiversity conservation activities in Brazil. There is a heavy dependence on the public sector, but macroeconomic policies aimed at reducing government spending have resulted in reduced budgets dedicated to public conservation measures. The financial constraints for environmental protection have also increased because of a reduction in foreign aid. Positive signs for the immediate future, however, come from new initiatives that create economic instruments to finance conservation. The most important initiatives include conservation criteria for tax redistribution; environmental compensation; water charges; royalties for electricity, petroleum, and natural gas; tradable obligations for forest reserves; and voluntary measures on the part of the business sector. Resources created from these initiatives have different origins and are managed by different public agencies according to varying laws and policies, so their efficient implementation will require that the institutions involved in biodiversity conservation in Brazil establish a minimum set of common priorities and objectives.