"Green Climate Fund backs scheme financing farming corporations accused of destroying forests", 11 July 2023

"The United Nations’ flagship climate fund is giving nearly $190 million to an investment programme that finances some of the world’s biggest farm companies in a bid to preserve tropical forests.

The Green Climate Fund (GCF) approved the project at its board meeting on Tuesday despite opposition from civil society campaigners that accused the “highly dangerous” programme of greenwashing companies linked to deforestation.

The money will support the activities of the &Green Fund, a Dutch investment vehicle that aims to stop deforestation in the supply chains of products like livestock, palm oil and rubber...

The fund says it offers loans to producers on the condition that they adopt sustainable practices. But campaigners have criticised it for financing companies accused of destroying the environment...

Beneficiaries questioned

Brazilian meat processing giant Marfrig Group is among the seven companies currently listed in the &Green portfolio.

Investigations by journalists and campaigners have repeatedly found evidence of illegal tree cutting to make way for cattle grazing in Marfrig’s supply chain.

Last year the Inter-American Development Bank shelved plans to lead a $200 million financing round for Marfrig after talks reportedly broke off over environmental targets.

With support from the Dutch fund, the Brazilian company aims to rid its operations in the Amazon of deforestation by 2028.

But its commitment has come under question. Cassie Dummett from Global Witness told Climate Home that, despite Marfrig’s targets, civil society organisations report that the company is exposed to deforestation. “Time and again voluntary commitments by major meatpackers operating in the Amazon and Cerrado have been broken,” she added. “In our view, it is not lack of finance that is delaying the cleaning up of these dirty supply chains, it is lack of will.”...

The &Green Fund has also supported two Indonesian companies that have been accused of growing palm oil and rubber in protected forests.

Florencia Ortuzar, a lawyer at the Interamerican Association for Environmental Defense (AIDA), says the programme runs contrary to the GCF's principles.

“These companies should have changed their ways years ago, because of laws, regulations and national policies. But they haven’t,” she added. “It is not reasonable to believe the problem will stop by paying the companies behind it. It is paying the polluters instead of having them pay”...."