Brazil’s development bank blocks credit to 58 landowning deforesters

Brazil’s economic and social development bank BNDES has blocked BRL 25 million in funding directed at 58 landowners involved in illegal deforestation.

To identify violators, the bank has used data from MapBiomas since February. The georeferencing technology shows the coverage and use of the soil in each of Brazil’s biomes with state-of-the-art precision, and can spot trees being cut down on a daily basis.

In an interview to Agência Brasil and Rádio Nacional, BNDES head Aloizio Mercadante talked about the advantages of this method.

“It can’t be questioned, because they’re images. It’s much more efficient to use the technology than to have inspectors come down in the area, walk around, and look for issues. Satellite imaging is revolutionary. It’s disruptive technology,” he argued.

Mercadante went on to say that funding cuts will be the bank’s approach from now on. “BNDES will be implacable. We no longer accept criminal entrepreneurs who deforest and get funding from state-owned and private banks.”

Of all landowners who lost credit concessions, three appealed the decision. Their defense claim they were licensed to deforest. The bank will consider the documentation submitted in the appeals.

Mercadante underscored that the next step is to forge partnerships with state governments to receive relevant data.

To regain access to credit, landowners will be required to show compliance and to repair the damage to the devastated area.