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The Amazon rainforest faces heightened risk of deforestation as a landmark agreement aimed at curbing soy-related clearing unravels. The Brazilian Association of Vegetable Oil Industries (ABIOVE) has withdrawn from the Soy Moratorium, a two-decade-classic initiative that committed traders to avoid purchasing soy grown on land deforested after 2008. This move follows the passage of a law in the state of Mato Grosso that provides tax breaks to companies that do not adhere to stricter environmental standards, raising concerns about a rollback of conservation efforts.
The Soy Moratorium had been widely lauded as a successful voluntary measure, demonstrably reducing direct deforestation linked to soy production. Though, ABIOVE’s departure, spurred by the new state law, effectively undermines the agreement’s effectiveness. Greenpeace expert Harald Gross characterized the timing as “no coincidence,” suggesting a calculated effort to avoid scrutiny amidst broader environmental concerns. The decision comes just months after the UN Climate Change Conference in Belém, where the global community convened to discuss protecting the Amazon and mobilizing resources for its preservation.
The Collapse of a Key Conservation Effort
While the agreement remains formally in place, its practical impact is now severely diminished. According to Gross, this represents “a catastrophe for the Amazon rainforest.” ABIOVE, representing 13 major processors and exporters of soybeans, plays a significant role in shaping the industry’s practices and influencing government policy. The withdrawal signals a weakening commitment to zero-deforestation policies within the Brazilian soy sector.
Currently, approximately 17 percent of the Amazon rainforest has already been destroyed. Scientists warn that if deforestation reaches 20 to 25 percent, the ecosystem could reach a “tipping point,” leading to irreversible drying and collapse. Such a scenario would have far-reaching global consequences, as the Amazon plays a crucial role in stabilizing the global climate, influencing weather patterns and mitigating droughts, including in regions like Europe.
Industry Response and the Brazilian Forest Code
The agricultural industry defends its position, citing the existing Brazilian “Forest Code” as sufficient regulation. The Forest Code, the central environmental law for private land in Brazil, permits legal deforestation of up to 20 percent of land within the Amazon ecosystem on private properties. However, critics argue that the Moratorium sent a stronger market signal and operated beyond the minimum legal standards. A report from 2025 indicated that between 91 and 95 percent of deforestation in the Amazon is illegal, highlighting the limitations of the Forest Code alone in preventing forest loss. Reuters reported on the major grain traders quitting the Amazon conservation pact.
Since 1985, Brazil has lost over 110 million hectares of natural vegetation – an area three times the size of Germany – with the Amazon, Cerrado, and Pantanal regions being particularly affected. Enforcement of the Forest Code remains a significant challenge, with Greenpeace noting substantial backlogs in processing fines and a lack of accountability for many landowners.
The Role of the EU and Global Supply Chains
The European Union’s new Deforestation Regulation (EUDR), which aims to ban products linked to deforestation, including soy, beef, and palm oil, could potentially offer a replacement for the Moratorium. However, Gross cautions that the EUDR has weaknesses, as traders could divert soy from deforested areas to markets like China. “The Moratorium applied to the entire purchasing policy – that’s exactly why it was so effective,” he stated. The EUDR requires companies to demonstrate the origin and deforestation-free status of their products.
A significant portion of Brazilian soy ends up as animal feed in European supply chains, placing pressure on European consumers and companies to demand sustainable sourcing. Retail chains like Aldi, Rewe, and Kaufland have reportedly emphasized the success of the Moratorium and are advocating for its expansion to other vulnerable regions, such as the Cerrado. Some international traders have even threatened boycotts if supply chain transparency diminishes.
Looking Ahead
Whether deforestation rates will actually increase remains to be seen. However, the removal of the Moratorium as a protective mechanism places ecosystems, the climate, and local communities at risk. As Brazil navigates its environmental policies, the decision carries implications for the global climate for decades to approach. The situation underscores the complex interplay between economic interests, environmental protection, and international cooperation in the Amazon region.
What comes next will depend on the enforcement of existing regulations, the effectiveness of the EUDR, and the willingness of international markets to prioritize sustainable sourcing. Readers are encouraged to share their thoughts and engage in discussion about the future of the Amazon rainforest in the comments below.
