Will the Strategic Initiative of a Footwear Company Potentially Reverse Amazon's Forest Destruction?
In the heart of the Amazon rainforest, Da Silva Lima, a rubber tapper, harvests latex from a tree known as a seringueira. This traditional way of life, however, faces challenges due to deforestation, climate change, and exploitative market forces. One company, Veja, aims to change this narrative by making rubber tapping economically viable again.
Veja, a shoe company, sources 20% to 40% of the rubber in their sneaker soles from Amazonian rubber tappers like Da Silva Lima. By paying seringueiros up to five times the market value for rubber, depending on factors like forest care and quality, Veja contributes to the livelihoods of these families while preserving the Amazon's biodiversity.
The Chico Mendes Extractive Reserve, established in 1990, is the largest extractive reserve in Brazil and home to over 10,000 residents. This system of publicly owned lands permits sustainable natural resource extraction by traditional populations like rubber tappers. In addition to rubber, families can earn a living from harvesting other natural forest products like acai, Brazil nuts, wild bee honey, and medicinal products.
The well-being of the forest and its people in the Chico Mendes Extractive Reserve are intertwined. Compliance with deforestation laws in the reserve has increased from 60% to 86% since Veja began monitoring four years ago. While much of this may be credited to Brazilian President Lula's policies, the impact of initiatives like Veja's cannot be understated.
The debate on the effectiveness of the bioeconomy in preserving the Amazon centers on its potential to create sustainable, nature-positive economic models that support forest conservation, Indigenous Peoples, and local communities. Supporters argue that initiatives like the Living Amazon Mechanism (LAM) can help small rural producers develop environmentally sustainable businesses, thereby de-risking investments in biodiversity-rich areas and enabling scalable conservation-oriented enterprises.
However, critics and challenges highlight that despite efforts, deforestation remains significant in the Amazon. Brazil lost over 1.2 million hectares of native vegetation in 2024, with illegal activities such as cattle ranching and land invasions continuing to threaten forest integrity. Financing bioeconomy ventures also faces hurdles, including small transaction sizes, limited collateral, long return horizons, and complex land tenure issues.
Some experts argue that while bioeconomy models have promise, they need to be complemented by large-scale funding mechanisms such as high-integrity carbon markets and funds like the Tropical Forests and Forests Fund (TFFF), which could unlock billions annually for forest conservation if implemented effectively.
Brazil's government promotes a bioeconomy, which involves selling forest products like rubber, acai, and Brazil nuts traditionally harvested from the Amazon. However, the beef industry, which accounts for 72% of Brazil's and 24% of the world's tropical deforestation, remains a significant challenge. The government subsidizes the beef industry with 123 billion reis ($2.2 billion today) per year in tax incentives, credit, and debt relief.
Despite these challenges, some scientists argue that the bioeconomy is critical to meeting Brazil's Paris Agreement climate goals. President Lula is at the forefront of the conversation about bioeconomy, with a focus on sustainable socioeconomic development, climate mitigation, and biodiversity conservation. Partnerships between governments, multilateral organizations, Indigenous groups, and local stakeholders are considered essential to scale up bioeconomy initiatives that reduce deforestation and promote green development in the Amazon.
The Amazon had its biggest fire in two decades and its worst drought in half a century in 2024, fueled by climate change. It is clear that the future of the Amazon and its people depends on our ability to balance economic development with conservation efforts. Initiatives like Veja's offer a promising path towards sustainable development and forest conservation, but they must overcome significant ecological, financial, and social challenges to achieve their full potential. Effective implementation requires integrated approaches including innovative financing, governance support, and regional collaboration to both reduce deforestation and sustain the wellbeing of forest-dependent communities.
- Veja, a shoe company, sources a significant portion of the rubber for their sneaker soles from Amazonian rubber tappers, paying them up to five times the market value.
- The Chico Mendes Extractive Reserve, home to over 10,000 residents, permits sustainable natural resource extraction by traditional populations such as rubber tappers, also allowing them to harvest other forest products.
- Compliance with deforestation laws in the Chico Mendes Extractive Reserve has increased in recent years, with companies like Veja making a significant contribution to this improvement.
- The debate on the effectiveness of the bioeconomy in preserving the Amazon centers on its potential to create sustainable, nature-positive economic models that support forest conservation, Indigenous Peoples, and local communities.
- Initiatives like the Living Amazon Mechanism (LAM) can help small rural producers develop environmentally sustainable businesses, potentially de-risking investments in biodiversity-rich areas.
- Despite efforts, deforestation remains significant in the Amazon, with illegal activities like cattle ranching and land invasions continuing to threaten forest integrity.
- The Amazon's future depends on our ability to balance economic development with conservation efforts, with initiatives like Veja's offering a promising path towards sustainable development and forest conservation.
- Partnerships between governments, multilateral organizations, Indigenous groups, and local stakeholders are considered essential to scaling up bioeconomy initiatives that reduce deforestation and promote green development in the Amazon.
