Report: Banks Channel Nearly $600 Billion to Tropical Deforestation-Linked Firms
A Forests & Finance coalition report says banks and investment funds have provided $595 billion since 2020 to agribusiness and mining firms operating in tropical forest areas. The analysis, which now includes metal and mineral mining plus coffee and cocoa, warns of an accountability gap and weak bank policies. It calls for stronger financial regulation ahead of the UN Biodiversity Conference COP17.
A Forests & Finance coalition report estimates $595 billion in financing since 2020 to agribusiness and mining companies active in tropical forest regions. Its scope now covers nickel, lithium, cobalt and copper mining, plus coffee and cocoa. It highlights risks in Brazil and Indonesia, citing the Amazon Soy Moratorium’s collapse and plantation expansion. Average bank policy score for forest-risk agro-commodities is 25%.
Published before COP17 in Armenia and during the PRI conference in Amsterdam, it urges governments to require biodiversity and human rights due diligence and transparency. It also asks banks to tighten deforestation, ecosystem conversion and peatland rules, verify compliance independently, and stop financing repeat violators.
The report could intensify scrutiny of banks and investors, potentially affecting access to capital for some agribusiness and mining firms. Communities in tropical forest regions may see greater attention to land rights and environmental harms, while consumers and investors might face clearer information about supply-chain risks. If COP17 talks advance due-diligence rules, financial institutions could adjust lending and investment practices, though actual changes may depend on enforcement and market responses.