Bloomberg says the 100-nation pledge to end deforestation at COP26 has several shortcomings, which means it won’t have much impact on global agricultural production, according to Fitch Solutions.
The commitment to halt and reverse forest loss by 2030, signed by countries including Brazil, Colombia and Indonesia, is not legally binding and does not have mechanisms for monitoring and enforcement, the researcher said in a report. The proposed $19 billion in funding is also likely to be insufficient.
“The new pledge will not result in a significant impact on agricultural production,” Fitch Solutions said. “Instead we note it as a downside risk, while highlighting a number of uncertainties and shortcomings associated with the commitment.”
The company kept its agricultural production forecasts unchanged, including for commodities that tend to drive land clearing practices, such as livestock, soybeans, palm oil, coffee and cocoa.
It sees Brazilian beef and soybean production growing at an average rate of about 3 per cent a year through to 2025. Indonesia palm oil output will continue to expand at 3.7 per cent, while cocoa output in West Africa will also rise further.