Unlocking the Amazon bioeconomy: infrastructure as the catalyst for sustainable growth – World Bank Blogs

Report on the Amazon Bioeconomy: Infrastructure Gaps and Alignment with Sustainable Development Goals

1.0 Introduction: The Bioeconomy as a Driver for Sustainable Development

The sustainable development of the Amazon region is intrinsically linked to the advancement of its bioeconomy. This model, which leverages biological resources and traditional knowledge, presents a significant opportunity to achieve multiple Sustainable Development Goals (SDGs). By creating value-added goods from resources such as açaí, Brazil nuts, and pirarucu fish, the bioeconomy can foster economic growth while ensuring environmental preservation. However, its potential is currently constrained by critical infrastructure deficits across the region.

2.0 Contribution of the Bioeconomy to the Sustainable Development Goals

A fully realized bioeconomy in the Amazon directly supports the achievement of several key SDGs:

• SDG 1 (No Poverty) & SDG 8 (Decent Work and Economic Growth): The bioeconomy promotes job creation and enhances local incomes for forest communities. Projections estimate the generation of approximately 42,000 new jobs by 2050, fostering inclusive and sustainable economic growth.
• SDG 10 (Reduced Inequalities): By expanding economic opportunities, the bioeconomy strengthens the livelihoods, traditions, and rights of Indigenous and local peoples, who are central to forest protection.
• SDG 12 (Responsible Consumption and Production) & SDG 15 (Life on Land): The model is founded on the responsible and sustainable use of biodiversity, creating an economic incentive to preserve the standing forest and protect terrestrial ecosystems.
• SDG 13 (Climate Action): Maintaining the integrity of the Amazon rainforest is critical for global climate regulation.

3.0 Analysis of Infrastructure Deficits Impeding SDG Progress

Significant infrastructure gaps in Brazil, Colombia, and Peru represent the primary barrier to scaling the Amazon’s bioeconomy and realizing its associated SDG benefits. These challenges exist across transport, energy, and digital connectivity.

3.1 Transport Infrastructure and its Impact on SDG 2 & SDG 9

Inadequate transport infrastructure severely limits market access and leads to significant post-harvest losses, undermining SDG 2 (Zero Hunger) and SDG 9 (Industry, Innovation and Infrastructure).

• The vast 380,000km river network is serviced by only 730 ports and docks, equating to one access point per 43,000 people.
• Dependence on small boats and precarious docks results in delays that cause substantial losses of perishable goods.

3.2 Energy Infrastructure and its Impact on SDG 7 & SDG 12

Unreliable energy access hinders processing and value-addition, directly conflicting with SDG 7 (Affordable and Clean Energy) and leading to production inefficiencies contrary to SDG 12.

• Many communities rely on costly and polluting diesel generators.
• Frequent power outages contribute to the spoilage of up to 50% of pirarucu catches and 40% of açaí production.
• Electricity outages are common, occurring 310 days per year in Caquetá, Colombia, and 114 days per year in Madre de Dios, Peru.

3.3 Digital Infrastructure and its Impact on SDG 8 & SDG 9

Limited digital connectivity isolates producers from markets and modern logistical tools, constraining progress toward SDG 8 and SDG 9.

• High-quality connectivity is available to only about 20% of the region’s population.
• This digital isolation prevents producers from coordinating logistics, ensuring product traceability, and accessing online markets.

4.0 Strategic Recommendations for Integrated Infrastructure Development

A forthcoming report from the World Bank, “A Place-Based Infrastructure Approach for Bioeconomies in the Amazon Region,” advocates for an integrated and tailored strategy to address these deficits. To unlock the Amazon’s potential and advance the SDGs, a place-based approach is required.

1. Enhance River Transport: Develop resilient and efficient ports and docks to improve connectivity and reduce product loss, supporting SDG 9 and SDG 12.
2. Promote Renewable Energy: Invest in sustainable energy solutions to ensure reliable power for cold storage and processing facilities, directly advancing SDG 7.
3. Expand Digital Connectivity: Increase access to high-quality internet to integrate remote producers into regional and global value chains, fostering progress on SDG 8 and SDG 9.

Implementing these integrated infrastructure solutions is essential to fostering sustainable development, improving livelihoods, and preserving the Amazon’s critical ecosystem in alignment with the global Sustainable Development Goals.

Analysis of SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 8: Decent Work and Economic Growth: The article directly addresses this goal by highlighting the bioeconomy’s potential to “create jobs, boost local income, and drive prosperity.” It specifically mentions a projection of “approximately 42,000 new jobs may be generated by 2050,” which aligns with promoting sustained, inclusive, and sustainable economic growth.
• SDG 9: Industry, Innovation and Infrastructure: This is a central theme of the article. The primary argument is that the Amazon’s bioeconomy is “constrained by a fundamental challenge: infrastructure gaps.” It details deficiencies in transport (ports, docks), energy (unreliable electricity), and digital connectivity, directly linking to the need for resilient and sustainable infrastructure.
• SDG 15: Life on Land: The article connects economic development directly to environmental preservation. The bioeconomy is presented as a strategy to “preserve the standing forest” and maintain the “rainforest’s ecological integrity,” which is the core objective of SDG 15, focusing on the sustainable management of forests and halting biodiversity loss.
• SDG 7: Affordable and Clean Energy: The article points to significant energy infrastructure challenges, noting that “unreliable electricity” and reliance on “costly diesel generators” lead to economic losses. The mention of the World Bank’s focus on “renewable energy” solutions connects the discussion to the goal of ensuring access to reliable, sustainable, and modern energy.
• SDG 1: No Poverty: By focusing on ways to “boost local income” and ensure “sustaining their livelihoods,” especially for Indigenous and local peoples, the article touches upon the fundamental goal of poverty eradication. Economic empowerment through the bioeconomy is presented as a pathway out of poverty for these communities.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure… to support economic development and human well-being. The entire article is framed around this target, detailing the lack of reliable transport (“makeshift docks”), energy (“frequent outages”), and digital infrastructure in the Amazon region.
2. Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation. The article’s focus on the bioeconomy as a driver for “expanding job opportunities” and creating “value-added goods” directly relates to this target.
3. Target 15.2: Promote the implementation of sustainable management of all types of forests, halt deforestation, restore degraded forests and substantially increase afforestation and reforestation globally. The article posits the bioeconomy as a viable economic alternative that incentivizes communities to “preserve the standing forest,” thereby contributing to this target.
4. Target 7.1: Ensure universal access to affordable, reliable and modern energy services. The article illustrates the failure to meet this target by citing frequent electricity outages (“310 days per year in Caquetá”) and the negative impact this has on local economies.
5. Target 9.c: Significantly increase access to information and communications technology and strive to provide universal and affordable access to the Internet. The article directly addresses this by stating that “limited digital connectivity” prevents producers from accessing markets and that “high-quality connectivity reaches only about 20% of the population.”

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Indicator for Job Creation (SDG 8): The article provides a specific projection that can be used as a benchmark: “approximately 42,000 new jobs may be generated by 2050.” The number of jobs created in the bioeconomy sector would be a direct indicator of progress.
• Indicator for Transport Infrastructure Access (SDG 9): The article provides a density metric: “one port/dock available per 43,000 people.” An improvement in this ratio would indicate progress towards Target 9.1.
• Indicator for Energy Reliability (SDG 7): The article gives concrete data on the lack of reliable energy: “Electricity outages are common, occurring 310 days per year in Caquetá (Colombia) and 114 days per year in Madre de Dios (Peru).” A reduction in the frequency and duration of power outages would be a key performance indicator.
• Indicator for Digital Connectivity (SDG 9): The article states that “High-quality connectivity reaches only about 20% of the population.” This percentage serves as a baseline indicator for Target 9.c, measuring the proportion of the population with access to digital networks.
• Indicator for Economic Loss due to Infrastructure Gaps: The article implies an indicator of economic efficiency by noting that infrastructure failures lead to the spoilage of “up to half of pirarucu catches and 40% of açaí production.” A reduction in these post-harvest losses would indicate improved infrastructure effectiveness.

4. Summary Table of SDGs, Targets, and Indicators

Source: blogs.worldbank.org