World Bank Arm Pulls Back Loan From Brazilian Agribusiness Linked to Forest Loss
The World Bank's private lending arm has dropped a planned loan for a feed mill in Brazil after environmental groups objected. Advocates say development banks have continued to support large livestock operations that add to climate pollution. The groups are calling the withdrawal a victory in efforts to curb Amazon deforestation.
The withdrawal concerns a planned feed mill in Brazil that environmental advocates linked to forest loss. The World Bank’s private lending arm had considered the loan but dropped it after objections from environmental groups.
Those groups say development banks have kept backing large livestock operations that contribute to climate pollution. They describe the canceled loan as a win for efforts to limit Amazon deforestation.
The withdrawal may signal that lenders face greater scrutiny over projects tied to deforestation, potentially affecting Brazilian agribusiness firms seeking finance and communities around forest regions. It could encourage environmental groups to press for similar decisions, while leaving uncertain whether such moves reduce emissions or simply shift financing elsewhere. Broader effects on food supply and rural livelihoods may depend on how lenders and producers respond.