Home to the world’s largest tropical forest, the Amazon is highly vulnerable to climate change impacts. The combination of increased temperatures and human-induced deforestation are creating adverse climate feedback loops. Increasingly warmer and drier conditions will further result in forest degradation and loss of ecological functions, ultimatelybringingtheAmazonforeststothepointofnoreturn. Known as the tipping point, there may come a time when the forests die and are replaced by dry savannah-like landscapes. This would have grave consequences on biodiversity, agriculture, human health and livelihood, and would also affect the Amazon’s key role in absorbing and storing the world’s carbon.

GCF's Amazon Bioeconomy Fund aims to reduce the impacts of climate change and greenhouse gas emissions and increase climate resilience in the region by promoting a paradigm shift to business models and technologies that sustainably use natural capital and forest assets. The programme will focus on prioritizing natural capital and delivering climate benefits in six countries (Brazil, Colombia, Ecuador, Guyana, Peru, Suriname). With a catalytic investment of USD 279 million from GCF, private investment will be encouraged in six key areas of the bioeconomy: sustainable agroforestry, native palm cultivation, non-timber natural forest products, growing native species timber, aquaculture, and community-led nature tourism.