Amazon deforestation footprint across global food and financial systems
Abstract
Agriculture-driven deforestation in the Amazon remains a major threat to ecosystem stability, biodiversity, and climate regulation1,2. Yet the role of global commodity consumption and finance in driving deforestation in the Amazon remains poorly understood and inadequately addressed3. We provide the first comprehensive assessment of the Amazon deforestation footprint embedded in global supply chains and commercial financial systems. Considering direct drivers, between 2001 and 2022, pasture expansion accounted for 83% of Amazon deforestation; however, crop-driven deforestation dominates in Bolivia, Ecuador, and Peru. While domestic consumption is indirectly linked to most deforestation, international demand remains an important driver, with China, the European Union, and the United States being major consumer markets. We also identify financial institutions that channelled at least US$1.9 trillion in financing to commodity exporters exposed to Amazon deforestation between 2010 and 2022. Most of these financial flows were attributed to institutions headquartered in Asia, Europe, and North America, while specific countries show disproportionately large financial exposure relative to their deforestation footprints. Our findings strengthen the case for a more coordinated strategy to reduce Amazon deforestation at scale by removing perverse incentives and incentivising and rewarding a shift towards sustainable agriculture.
Fields of Study & Subjects
Conservation
Biodiversity
and Resource Management
Oil Palm Production and Sustainability
Environmental Impact and Sustainability
Publication details
- Publication date
- 5 March 2026
- Language
- EN
- Document type
- Preprint