Brazil banks to verify deforestation for rural loans

Brazil is implementing a significant shift in its environmental strategy by enlisting financial institutions to monitor and curb illegal land clearing in the Amazon. Starting Wednesday, a new regulation requires bank managers to verify if rural loan applicants have engaged in deforestation on their properties. This verification process utilizes government satellite data to identify any unauthorized clearing since 2019.

"We turned every bank manager who handles subsidized credit into an inspector of illegal deforestation," said Andre Lima, who leads efforts to fight deforestation in Brazils Environment Ministry.