Amazon Dispute Yet to be Solved

A recent debate has arisen in the Amazon recently, where construction was approved to build one of two dams planned within the giant rainforest. Environmentalists are worried the dams, Jirau and Santo Antonio, will flood up to 494,200 acres of land, “dramatically changing the ecosystem.” (Stuart Grudgings, Reuters)

But the Brazilian government sees the dams on the Madeira River as “crucial to prevent energy shortages in its fast growing economy over the next decade.” The Madeira river, which is the Amazon’s biggest tributary, would have 2 dams built within it for millions of dollars, allowing Brazil’s agriculture exports easier to manage. Brazil’s environmental minister, Carlos Minc, attached 40 provisions onto Monday’s approval of the installation of the Santo Antonio dam, which slowed the process down.

Environmentalists claim the government has not provided enough safeguards for this type of work. They claim that Minc is bluffing in his provisions act, “pretending his agency is demanding a lot of rigorous measures” Glenn Switkes said, Director for a California-based group that protects rivers and communities around them. Activists claim the dams violate the Equator Principles on project financing.

But the government has threatened to reopen the auctions or take over the two projects through “state-controlled generator Electrobas” if no agreement is reached soon. Conservationists at this point have failed to hold up licensing on their part, creating more friction between the two opposing parties.

But Erasto Almeida, an energy analyst at Eurasia Group in New York, played down threats of delay. “The Brazilian government really wants to get these projects done because of concerns about potential power shortages,” he said. He says there may be legal action but the two dueling sides will come to an agreement.

The Amazon has the highest biodiversity of fish and among the highest of birds in the world.

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