Formalization will reduce crime in the Amazon, says business leader

Reducing crime in the Amazon depends on increasing the presence of formal economy businesses in the region. This is the assessment of the president of , Marcelo Thomé da Silva de Almeida, 50 years old. According to him, this involves the organization of projects by business organizations and governments, including the federal government.

Almeida, a construction businessman, is president of the (Federation of Industries of the State of Rondônia) and one of the vice-presidents of the (National Confederation of Industry). The institute, based in São Paulo, was implemented by the CNI and business entities in the Amazon.

In an interview with Poder360 on December 11, 2024, the business leader said that the well-being of the majority of the Amazon population, around 30 million people, has worsened in recent years. Crime is growing in all states in the region.

Watch the interview (20min49s)

However, Almeida states that the outlook is positive due to the increased interest of banks in financing sustainable activities. It also assesses that the carbon market will increase the supply of financing. And he hopes that COP 30 (2025 United Nations Conference on Climate Change) in Belém in November next year will boost the visibility of the projects.

Economic gains, says the president of the institute, could eliminate interest in deforestation. He states that the reforestation of the Amazon could soon replace the loss of native vegetation.

Below are excerpts from the interview.

Poder360: How can people’s income in the Amazon and companies’ earnings be increased?

Marcelo Thomé da Silva de Almeida: “There is a great deal of struggle that needs to be done in the Amazon to overcome the high degree of informality, creating structured businesses, small or large, that promote economic inclusion within a sustainable logic. [É preciso] increase income and generate dignity and prosperity for the Amazonian population, 30 million Brazilians who today are forced to live with the lowest [Índice de Desenvolvimento Humano] of the country.

What economic activities can develop further in the region?

“Through the Amazônia+21 Institute, we identified traditional sectors [com] future: sustainable and responsible livestock farming, family and extensive farming. And new sectors linked to the green, low-carbon economy, a broader bioeconomy, which connects the possibilities of business development from the Amazon biome with industrial activities: cosmetics, pharmaceuticals, fabrics and many others identified as scalable. [Isso vale] also for the forestry sector. There is very strong pressure for forest recovery. The forest restoration agenda is central, as well as rescuing moisture in the Amazon region. And it requires a lot of labor. There is a lot of investment available. Brazilian science already has a reasonable grasp of the different techniques necessary for replanting the Amazon forest. [Há] appetite of the financial sector to increase it.

Is public money also needed for this?

“Undoubtedly [é necessária] the definition of appropriate public policies that look at the Amazon as a destination for investments for structural projects. And here I include the infrastructure. [Há] a discussion that has violated a centuries-old delay: whether or not there can be infrastructure in the Amazon. The discussion is ‘how to do it’ and whether or not it can be done. The role of the State is fundamental in promoting regular, formal, legal paths, attracting private investors, organizing the regulatory environment so that the business environment is favorable to the private sector.

Is it possible to reduce deforestation in the Amazon to zero?

“That’s a complicated question. [Há] illegal deforestation [e] legal deforestation is permitted. The vegetation suppression that the Forest Code authorizes in the Amazon region, in the order of 20% of the total land that [a pessoa] he has. By demonstrating that the standing forest is worth more, and actually managing to deliver this to the forest owner, I think we can replace the logic of plant suppression for transformation into pasture or low-quality agriculture, or even to sell [a madeira] at any price. That [pode ser]consortium with public policy and the mobilization of the private sector, bringing financial resources and innovation. We are approaching a time when deforestation in the Amazon will no longer be interesting from an economic point of view.

“What is illegal needs to be fought. The Brazilian State has not been enough to curb, to repress illegal deforestation in the region. This is a chronic problem that affects Brazil’s image in the external environment. How to resolve this? [Com] public policy, replacement of licit activity with legal activity, with structured enterprises facing the high degree of informality and recognition that the Amazon can have good business, that it is not a sanctuary.

“The environmentalist agenda or the traditional agenda of the Amazon has sought to strengthen forest conservation through isolation. This has created the space conducive to the advancement of illicit activities, the advancement of irregular activities. We need to replace this outdated agenda, which was fundamental in teaching us what can and cannot be done. We need to evolve towards another model of economic development that is sustainable and inclusive. This will help promote the inclusion of the Amazon population on a regular basis in good jobs, generating income, dignity and prosperity for the population. I include myself in that population. I have lived in Rondônia for over 25 years. Forest conservation will be achieved through economic allocation and no longer by seeing the forest as a sanctuary.

What is the prospect of having areas reforested, returning to a situation close to the original?

“In Rondônia, a study by Fiero identified that 70% of the areas opened in the past and which, from a land ownership point of view, are regular today, are underused or degraded. The increase in agricultural and livestock production can be done in these regular areas that are currently completely underutilized. Rondônia has experienced this movement: adding solutions in which science has already demonstrated that productivity gains, whether in the livestock or agricultural sector, have reasonable leverage [ao] combine these activities.

“Crop-livestock-forest integration is a great solution for a new agenda, both for livestock and agricultural production in the State, recovering areas that are currently underutilized, without requiring the advancement of a millimeter over the natural forest. The forest restoration agenda is financed, in particular by the definitive approval at a global level of the carbon market and by the National Congress of . The regulated carbon market depends only on regulation. Brazil has enormous potential to be a major global player, especially in the Amazon region.

Crime is a growing problem in the Amazon. How to resolve this?

“As a businessman, I see legal economic activity as a suitable way to reduce the space for crime. This is a role of the State and a command and control agenda. She needs to be more forceful and understand the challenges. Today, there is a major problem permeating the entire Amazon region, linked to criminal activities.

How will the carbon market be able to contribute to the preservation and economic development of the Amazon?

“There are already some good examples from the Amazon, especially from the hydroelectric plants on the Madeira River. They generate clean energy for Brazil and are selling their carbon credits. The Amazon has several possibilities for generating good carbon credits, whether forest-based or other possibilities.

What can be improved in this area?

“I think the biggest challenge is not the regulatory issue, because this is in place, both from the point of view of company certifiers and project origination. What we need is to improve the perception of Brazil’s credit quality. It is bought very cheaply in Brazil, it is sold expensive abroad. [É preciso] have a market that is fairer. There is still a somewhat colonialist logic in relation to carbon emitted in Brazil. The best projects in Brazil pay US$20 per ton, while in Europe a ton can be sold for US$100.

How to reduce this difference?

“[Por meio do] path of image, reputation, credibility. [É preciso] ensure that projects in Brazil are honest, comply with the rules, and are not developed on irregular land. Brazil needs to move forward so that, from a reputational point of view, carbon credit is perceived with the same quality as carbon credit in Europe or other regions.

What is your assessment of the demarcation of new indigenous lands?

“At the Amazônia+21 Institute, a few years ago, I received a call from an indigenous leader from Rondônia inviting me to visit their territory, asking for help in drawing up an economic development plan. And the sentence that stood out is the following: ‘I no longer want the guardianship of [Fundação Nacional dos Povos Indígenas]. I want to be able to generate income, develop from an economic point of view, my territory, to guarantee the needs of my people are met’. Demarcate land for what and for whom? In what sense? Without this being properly responded to, we may be creating more areas vulnerable to the expansion of crime in the Amazon region.

How soon will it be possible to have the Amazon in a different situation than the current one?

“This question is difficult. But I would say that today we have a very powerful convergence of forces favorable to a correct agenda for the Amazon. There is a federal government that demonstrates absolute commitment to the agenda for a low-carbon economy, for the Amazon, recognizing that the centrality of processes, projects and actions must be people, the 30 million Brazilians who are in the region.

“There is a repositioning of the Brazilian financial sector, understanding that it needs to make efforts to create good structuring projects in the Amazon region. And the understanding that the private sector has a role to play in this agenda. Therefore, we proposed the Amazônia+21 Institute. Possibly, in a short time we will be able to at least reverse the logic of destruction and worsening of people’s quality of life. I’ve been going back to some communities I knew many years ago and people’s lives are worse. This is unacceptable. It is urgent that we manage to reverse this downward curve of human development in the Amazon towards an agenda of sustainable and inclusive economic development, which promotes the well-being of the people there.

What are your expectations regarding COP 30, which will take place in 2025, in Belém?

“COP 30 has to take place in Belém. I have positioned myself in favor of this. There is already a great Brazilian mobilization for the COP to be a great success. [Precisamos] structure a portfolio of projects, whether in the industrial sector, sustainable tourism, city development, bioeconomy, carbon, forest restoration. We cannot miss the opportunity to capture the attention and commitment of the visitor who will come to Brazil, who will come to the Amazon, and demonstrate to them that Brazil is ready to receive large-scale investments to leverage a new economy.

There are doubts regarding people’s accommodation. What is your assessment of this?

“I’m sure everything will be fine. The State government is making a huge effort through the governor [MDB] to prepare the city of Belém. The private sector of Belém is also preparing to serve visitors. With our Brazilian way of resolving issues, [será possível] welcome visitors at a high level.”