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Cattle farmer fined $50 million for damaging Amazon rainforest

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London, UK
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A Brazilian rancher has been ordered to pay a whopping $50 million fine after destroying a large swathe of the Amazon rainforest to make space for cattle farming. He’s also been ordered to restore the area, which will be no small feat.

Last week, a Brazilian federal court froze the assets of cattle farmer Dirceu Kruger to pay for the damage he caused to the Amazon Rainforest and the global climate.

The rancher is responsible for causing widespread deforestation in the Amazon to make space for cattle farms. He used chainsaws to cut trees, then set fire to the area to clear the land, and planted grass intended for grazing cattle. This damage is visible from satellite images.

Brazil’s attorney general office brought the case to court, representing the Brazilian Institute of Environment and Renewable Natural Resources (IBAMA). This was not IBAMA’s first encounter with Kruger, having previously forced him to pay a fine after he destroyed 5,600 hectares of government-owned forestland in both the Boca do Acre and Lárea municipalities.

Building the most recent case, lawyers pointed out that Kruger had not only caused significant damage to the Amazon, but had also harmed the planet’s climate system. He did so firstly by burning vegetation, which emits carbon dioxide into the atmosphere, but also by eliminating part of a vital carbon sink.

Why is clearing the Amazon rainforest such a big deal?

The Amazon rainforest is famous for being the most biologically diverse place on Earth, but it also plays a key role in regulating our global climate. Despite this, it has continued to be threatened by human activity, including legal and illegal logging, farming, and ranching.

For each hectare of rainforest destroyed in the Amazon, an average 161 tons of carbon dioxide is released into the atmosphere. The amount of CO2 released by Kruger’s activity totalled a massive 901,600 tons.

To assess the financial cost of the rancher’s environmental destruction, the court consulted the ‘Social Cost of Carbon’ calculator created by the US Environmental Protection Agency and Organization for Economic Cooperation and Development (OECD).

It estimates that releasing just one ton of carbon results in $65 in damages, though other estimates suggest the figure is significantly higher. By this measurement, Kruger’s total damages reached 292m Brazilian reais – equal to $50 million USD.

Ouch.

A monumental case

The punishments given to Dirceu Kruger don’t stop there.

Once he pays the $50 million fine, it will be put towards Brazil’s national climate emergency fund. In addition, he will be prohibited from receiving government finance and tax benefits. He is also barred from selling cattle or agricultural goods and banned from purchasing tools like chainsaws and tractors.

Finally, Kruger will pay in the form of reparations. Alongside his legal and financial orders, has been ordered to restore the land he degraded. The court agreed that this two pronged approach is important, as damage caused by deforestation cannot ever be fully corrected.

Brazil’s attorney general’s office has stated that it will continue to take action which holds companies and individuals responsible for the destruction of the Amazon, as well as other Brazilian biomes.

This may be the biggest case the office ever brought to court, but with the rainforest being increasingly understood as vital for our planet’s survival, it will certainly not be the last.

Deputy Editor & Content Partnership Manager London, UK

I’m Jessica (She/Her). I’m the Deputy Editor & Content Partnership Manager at Thred. Originally from the island of Bermuda, I specialise in writing about ocean health and marine conservation, but you can also find me delving into pop culture, health and wellness, plus sustainability in the beauty and fashion industries. Follow me on Twitter, LinkedIn and drop me some ideas/feedback via email.

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