World Bank arm withdraws loan to Brazilian agribusiness tied to deforestation

· Climate · Brazil

The World Bank's private lending arm has withdrawn funding for a controversial feed mill in Brazil, according to a coalition of environmental groups cited by Inside Climate News. Advocates called it a victory, though the same outlet notes that development banks continue to finance expansions of large, climate-polluting livestock operations. The decision affects a project linked to deforestation in a country where cattle and feed supply chains are a major driver of forest loss. It also puts attention on how multilateral lenders screen agricultural borrowers and the conditions attached to their loans.

Why it matters：Multilateral lenders' lending decisions signal how far development finance will police deforestation in agricultural supply chains, a test case for lenders and agribusiness globally.

Key points

  • The World Bank's private lending arm withdrew funding for a feed mill in Brazil.
  • Environmental groups called the withdrawal a victory.
  • Development banks continue to finance large livestock expansions, the outlet reports.

Sources (original reporting)

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