The Amazonian rainforest is on the brink of an ecological tipping point. Relentless deforestation and degradation are to blame, mostly to make way for cattle, soy, palm, and to extract minerals and metals. Over 95% of the deforestation in the Brazilian Amazonia rainforest is illegal. The extraction of commodities and perpetration of environmental crimes is driven by market forces that value a cleared forest over one that is left standing. New report from the Inter-American Development Bank (IDB), in partnership with the Igarapé Institute, “Re-imagining Bioeconomy for Amazonia” explores how a shared understanding of the bioeconomy and creative economy– accompanied by enabling legislation, capital for rapid scaling-up, and support infrastructure – could contribute to a thriving regional bioeconomy that helps to slow and, eventually, reverse deforestation.
Amazonia spans eight countries and is a cornerstone of global climate stability. It is home to over 10% of the world’s biodiversity, 20% of surface freshwater, and 54% of its primary tropical forests. All told, the Amazonia Basin stores an astounding 150 billion metric tons of carbon— equivalent to over ten times annual global greenhouse gas emissions. But even as policy makers and scientists call for a drastic reduction in these emissions – 43% by 2030 and 60% by 2035 from 2019 levels – the Amazonia is under threat. Deforestation of the primary forest has already surpassed 13% of the original Amazonia biome, with up to 31% lost in the eastern region, signaling an alarming advance towards the estimated 20-25% deforestation threshold that could trigger die-back and irreversible ecological transformation.
If the Amazonia tipping point is reached, the consequences will be felt not just regionally, but globally. A recent study featured in Nature predicts that by 2050, water stress could cause between 10 and 47% of Amazonia to face critical disruptions that increase the chances of ecosystem collapse. The World Resources Institute, in turn, has determined that, if the current extraction oriented development model continues unabated across the region, global emissions could expand five times the Paris Climate Agreement targets by 2050: 57 million hectares of forest – equivalent to the size of France – could be destroyed.
The dire deforestation projections underline the urgent need to shift the economic paradigm in the Amazonia. The World Resources Institute, in turn, has determined that, if the current extraction oriented development model continues unabated across the region, global emissions could expand five times the Paris Climate Agreement targets by 2050: 57 million hectares of forest – equivalent to the size of France – could be destroyed. A new economic model is required, one that builds on the region’s key asset: biodiversity. The best way to ensure forests remain intact is by ensuring that economic value is attached to the sustainable use of biodiversity and other natural resources. Growing the region’s bioeconomy has the potential to reconcile meaningful and inclusive economic development with environmental sustainability, creating a win-win-win scenario for: the Amazonia, the people who live there, and the global climate.
What is bioeconomy?
Notwithstanding its potential, the definition of the “bioeconomy” is not universally shared or applied. In North America and Western Europe, for example, definitions typically center around economic growth and market competitiveness, and often cite biotechnology as a means to balance economic expansion with environmental sustainability. Given that capital to support bioeconomy development originates primarily from wealthy countries, “semantic asymmetries” can potentially affect access to investment, funding, and assistance for countries and entrepreneurs in the Global South.
It is important to recall that the Amazonia is home not just to extraordinary natural abundance, but also exceptional human diversity. Alongside large land-owners and smallholder farmers are traditional communities, including over 300 indigenous communities and traditional organizations. The complex needs of the 47 million people living in the Amazonia demands a nuanced and localized approach ton bioeconomy. Scholars have called for a research agenda that extends beyond the traditional focus areas of North America and Western Europe, integrating the scientific knowledge and vast practical experience of local actors in key biomes such as the Amazonia.
In an effort to bridge the gap between global concepts and local realities, the IDB and the Igarapé Institute, are mapping the epistemic community working on the bioeconomy across the Amazonia’s eight countries. By conducting close to 100 interviews and a two-stage survey with over 1,000 respondents, the study improves the conceptual clarity around the bioeconomy. A basic goal is to help governments, multilateral development banks, and private investors ensure that capital is aligned with the needs, priorities, and aspirations of local bioeconomies.
Despite differences in how bioeconomy is defined between Amazonian countries, there is a growing consensus among researchers that bioeconomy is critical to meet climate and development goals while also sustainably managing native biodiversity. There is also a deepening appreciation of the leap-frogging potential of technology and innovation to create value-added products and strengthen emerging economic sectors. However, the study suggests that regional economic approaches to supporting bioeconomy must consider each country’s distinct political, social, economic, and epistemic landscape. In some cases, like Bolivia, this may mean redefining or even abandoning the term “bioeconomy” to facilitate meaningful dialogue and progress with governments and local stakeholders.
A key takeaway is that the development of a single unitary definition of bioeconomy may not just be challenging, but also counterproductive. Indeed, many respondents interviewed over the course of the study suggested alternative terms such as “sociobioeconomy” and “indigenous economy“. There was widespread agreement that bioeconomy should honor and incorporate the rights and knowledge of indigenous peoples and local communities, not merely as an environmental imperative but also as a matter of social justice and cultural preservation. When it comes to the Amazonia, it is vital that these perspectives are woven into the fabric of bioeconomic models to ensure they are truly inclusive, equitable, and reflective of the diverse values and needs of all stakeholders.
Another central finding from the study is the need to align the aspirations of “bioeconomy” with the local political, economic and cultural contexts of the Amazonia region. Overall, 73% of respondents to the second questionnaire agreed that the term “bioeconomy” is aligned with local contexts, and just over half (55%) confirmed the use of other terms to describe their work in the region. In several countries, however, respondents observed that “bioeconomy” could be construed as a form of “green capitalism” that favors external interests. Additionally, others expressed doubts about whether the term adequately captured the many “social” dimensions of sustainable development, particularly the respectful inclusion of indigenous peoples.
The economic potential of bioeconomy
Bioeconomy is also compelling on economic grounds, with the potential to dramatically increase the dividends of standing forests. In Brazil alone, the Amazonian bioeconomy is projected to add $8 billion yearly to the region’s GDP by 2050, while generating over 300,000 jobs and conserving and restoring 81 million hectares of rainforest. The global shift toward green investments is also promising, opening up new channels of engagement and investment. Several pioneering companies (like Natura and Dengo) have already taken the lead in demonstrating how sustainable business practices in the Amazonia are both profitable and biodiversity preserving. Even so, the participation of more entrepreneurs and private capital is essential to scale up conservation and sustainable development initiatives.
Ultimately, the success of the Amazonia bioeconomy will be determined not just by sustainable economic investment, but by the alignment of progress with the region’s natural and cultural heritage. This push will likely continue to face strong resistance from extractive sectors that favor immediate profits over long-term sustainability. As a result, it will be crucial to involve local communities in adopting innovative production strategies and economic arrangements like those proposed by bioeconomy. No matter the specific term used, this vision is one of symbiotic growth, where economic growth, environmental stewardship, and social inclusivity converge to create a sustainable and prosperous future for all who call the Amazonia home.
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