Cerrado deforestation threatens regional climate and water availability for agriculture and ecosystems.

The Brazilian Cerrado is one of the most biodiverse savannas in the world, yet 46% of its original cover has been cleared to make way for crops and pastures. These extensive land-use transitions (LUTs) are expected to influence regional climate by reducing evapotranspiration (ET), increasing land surface temperature (LST), and ultimately reducing precipitation. Here, we quantify the impacts of LUTs on ET and LST in the Cerrado by combining MODIS satellite data with annual land use and land cover maps from 2006 to 2019. We performed regression analyses to quantify the effects of six common LUTs on ET and LST across the entire gradient of Cerrado landscapes. Results indicate that clearing forests for cropland or pasture increased average LST by ~3.5°C and reduced mean annual ET by 44% and 39%, respectively. Transitions from woody savannas to cropland or pasture increased average LST by 1.9°C and reduced mean annual ET by 27% and 21%, respectively. Converting native grasslands to cropland or pasture increased average LST by 0.9 and 0.6°C, respectively. Conversely, grassland-to-pasture transitions increased mean annual ET by 15%. To date, land changes have caused a 10% reduction in water recycled to the atmosphere annually and a 0.9°C increase in average LST across the biome, compared to the historic baseline under native vegetation. Global climate changes from increased atmospheric greenhouse gas concentrations will only exacerbate these effects. Considering potential future scenarios, we found that abandoning deforestation control policies or allowing legal deforestation to continue (at least 28.4 Mha) would further reduce yearly ET (by -9% and -3%, respectively) and increase average LST (by +0.7 and +0.3°C, respectively) by 2050. In contrast, policies encouraging zero deforestation and restoration of the 5.2 Mha of illegally deforested areas would partially offset the warming and drying impacts of land-use change.

O Cerrado brasileiro é uma das savanas mais biodiversas do mundo. Apesar disso, 46% da sua cobertura original foi desmatada para dar lugar a cultivos agrícolas e pastos. Estas extensas transições de uso do solo (LUT) têm o potencial de influenciar o clima regional, reduzindo a evapotranspiração (ET), aumentando a temperatura da superfície terrestre (LST) e por fim reduzindo a precipitação. O objetivo deste estudo foi quantificar os impactos de LUTs sobre ET e LST no Cerrado, combinando dados do satélite MODIS com mapas anuais de uso e cobertura do solo de 2006-2019. Foram realizadas análises de regressão para quantificar os efeitos de seis LUTs usuais sobre ET e LST, ao longo de todo o gradiente de paisagens do Cerrado. Os resultados indicaram que a retirada de florestas para dar lugar à agricultura ou pastagem aumentou a LST média em ~3.5°C e reduziu a ET média anual em 44% e 39%, respectivamente. Transições de formações savânicas para agricultura ou pastagem aumentaram a LST média em 1.9°C e reduziram a ET média anual em 27% e 21%, respectivamente. A conversão de campos nativos para agricultura ou pastagem aumentou a LST média em 0.9 e 0.6°C, respectivamente. Em contrapartida, transições de formações campestres nativas para pastagens aumentaram a ET média anual em 15%. Até o momento, as mudanças de uso do solo causaram redução de 10% da água reciclada para a atmosfera anualmente e aumento de 0.9°C da LST média ao longo do bioma, em comparação com a linha de base histórica sob vegetação nativa. As mudanças climáticas globais decorrentes do aumento das concentrações atmosféricas de gases do efeito estufa irão exacerbar esses efeitos. Considerando potenciais cenários futuros, observou-se que o abandono das políticas de controle do desmatamento ou o avanço do desmatamento legal (ao menos 28.4 Mha) reduziriam a ET anual (em −9% e −3%, respectivamente) e aumentariam a LST média (em +0.7 e +0.3ºC, respectivamente) até 2050. Por outro lado, políticas que promovam desmatamento zero e restauração dos 5.2 Mha de áreas ilegalmente desmatadas compensariam parte dos impactos de aquecimento e seca causados por alterações de uso do solo.

Will farmers seek environmental regularization in the Amazon and how? Insights from the Rural Environmental Registry (CAR) questionnaires.

The future availability and quality of natural resources essential to life such as ecosystem services and biodiversity depend on the conservation and restoration of native vegetation. The Brazilian Native Vegetation Protection Law (NVPL) requires farmers to conserve a minimum percentage of native vegetation within their properties as Legal Reserves (LR) as well as riparian forests and hilltops as Permanent Preservation Areas (PPAs). To monitor the conservation and facilitate the compliance of these areas, the Rural Environmental Registry (CAR) and the Environmental Regularization Program (PRA) were created. However, so far, little is known about farmers' interest in joining the PRA and the actions they intend to take to correct their past illegal deforestation. This article explores a unique dataset comprising of the individual answers of 97 thousand farmers in the states of Pará and Mato Grosso given to the Brazilian Forest Service in the process of joining at the national rural environmental registry system. We found that the adherence to the PRA is positively correlated with recognition of the LR deficit and the size of the rural property. Also medium and large landowners and crop producers tend to seek compliance by taking actions outside the farm (compensation), while small farmers and squatters are more likely to act inside their own areas (restoration). Understanding farmers' interests and options for LR compliance can contribute for the formulation of more effective implementation strategies for PRA and NVPL.

Limits of Brazil's Forest Code as a means to end illegal deforestation.

The 2012 Brazilian Forest Code governs the fate of forests and savannas on Brazil's 394 Mha of privately owned lands. The government claims that a new national land registry (SICAR), introduced under the revised law, could end illegal deforestation by greatly reducing the cost of monitoring, enforcement, and compliance. This study evaluates that potential, using data from state-level land registries (CAR) in Pará and Mato Grosso that were precursors of SICAR. Using geospatial analyses and stakeholder interviews, we quantify the impact of CAR on deforestation and forest restoration, investigating how landowners adjust their behaviors over time. Our results indicate rapid adoption of CAR, with registered properties covering a total of 57 Mha by 2013. This suggests that the financial incentives to join CAR currently exceed the costs. Registered properties initially showed lower deforestation rates than unregistered ones, but these differences varied by property size and diminished over time. Moreover, only 6% of registered producers reported taking steps to restore illegally cleared areas on their properties. Our results suggest that, from the landowner's perspective, full compliance with the Forest Code offers few economic benefits. Achieving zero illegal deforestation in this context would require the private sector to include full compliance as a market criterion, while state and federal governments develop SICAR as a de facto enforcement mechanism. These results are relevant to other tropical countries and underscore the importance of developing a policy mix that creates lasting incentives for sustainable land-use practices.

The Amazon basin in transition.

Agricultural expansion and climate variability have become important agents of disturbance in the Amazon basin. Recent studies have demonstrated considerable resilience of Amazonian forests to moderate annual drought, but they also show that interactions between deforestation, fire and drought potentially lead to losses of carbon storage and changes in regional precipitation patterns and river discharge. Although the basin-wide impacts of land use and drought may not yet surpass the magnitude of natural variability of hydrologic and biogeochemical cycles, there are some signs of a transition to a disturbance-dominated regime. These signs include changing energy and water cycles in the southern and eastern portions of the Amazon basin.

Abrupt increases in Amazonian tree mortality due to drought-fire interactions.

Interactions between climate and land-use change may drive widespread degradation of Amazonian forests. High-intensity fires associated with extreme weather events could accelerate this degradation by abruptly increasing tree mortality, but this process remains poorly understood. Here we present, to our knowledge, the first field-based evidence of a tipping point in Amazon forests due to altered fire regimes. Based on results of a large-scale, long-term experiment with annual and triennial burn regimes (B1yr and B3yr, respectively) in the Amazon, we found abrupt increases in fire-induced tree mortality (226 and 462%) during a severe drought event, when fuel loads and air temperatures were substantially higher and relative humidity was lower than long-term averages. This threshold mortality response had a cascading effect, causing sharp declines in canopy cover (23 and 31%) and aboveground live biomass (12 and 30%) and favoring widespread invasion by flammable grasses across the forest edge area (80 and 63%), where fires were most intense (e.g., 220 and 820 kW ⋅ m(-1)). During the droughts of 2007 and 2010, regional forest fires burned 12 and 5% of southeastern Amazon forests, respectively, compared with <1% in nondrought years. These results show that a few extreme drought events, coupled with forest fragmentation and anthropogenic ignition sources, are already causing widespread fire-induced tree mortality and forest degradation across southeastern Amazon forests. Future projections of vegetation responses to climate change across drier portions of the Amazon require more than simulation of global climate forcing alone and must also include interactions of extreme weather events, fire, and land-use change.

Governance regime and location influence avoided deforestation success of protected areas in the Brazilian Amazon.

Protected areas in tropical countries are managed under different governance regimes, the relative effectiveness of which in avoiding deforestation has been the subject of recent debates. Participants in these debates answer appeals for more strict protection with the argument that sustainable use areas and indigenous lands can balance deforestation pressures by leveraging local support to create and enforce protective regulations. Which protection strategy is more effective can also depend on (i) the level of deforestation pressures to which an area is exposed and (ii) the intensity of government enforcement. We examine this relationship empirically, using data from 292 protected areas in the Brazilian Amazon. We show that, for any given level of deforestation pressure, strictly protected areas consistently avoided more deforestation than sustainable use areas. Indigenous lands were particularly effective at avoiding deforestation in locations with high deforestation pressure. Findings were stable across two time periods featuring major shifts in the intensity of government enforcement. We also observed shifting trends in the location of protected areas, documenting that between 2000 and 2005 strictly protected areas were more likely to be established in high-pressure locations than in sustainable use areas and indigenous lands. Our findings confirm that all protection regimes helped reduce deforestation in the Brazilian Amazon.

Dependence of hydropower energy generation on forests in the Amazon Basin at local and regional scales.

Tropical rainforest regions have large hydropower generation potential that figures prominently in many nations' energy growth strategies. Feasibility studies of hydropower plants typically ignore the effect of future deforestation or assume that deforestation will have a positive effect on river discharge and energy generation resulting from declines in evapotranspiration (ET) associated with forest conversion. Forest loss can also reduce river discharge, however, by inhibiting rainfall. We used land use, hydrological, and climate models to examine the local "direct" effects (through changes in ET within the watershed) and the potential regional "indirect" effects (through changes in rainfall) of deforestation on river discharge and energy generation potential for the Belo Monte energy complex, one of the world's largest hydropower plants that is currently under construction on the Xingu River in the eastern Amazon. In the absence of indirect effects of deforestation, simulated deforestation of 20% and 40% within the Xingu River basin increased discharge by 4-8% and 10-12%, with similar increases in energy generation. When indirect effects were considered, deforestation of the Amazon region inhibited rainfall within the Xingu Basin, counterbalancing declines in ET and decreasing discharge by 6-36%. Under business-as-usual projections of forest loss for 2050 (40%), simulated power generation declined to only 25% of maximum plant output and 60% of the industry's own projections. Like other energy sources, hydropower plants present large social and environmental costs. Their reliability as energy sources, however, must take into account their dependence on forests.

Committed carbon emissions, deforestation, and community land conversion from oil palm plantation expansion in West Kalimantan, Indonesia.

Industrial agricultural plantations are a rapidly increasing yet largely unmeasured source of tropical land cover change. Here, we evaluate impacts of oil palm plantation development on land cover, carbon flux, and agrarian community lands in West Kalimantan, Indonesian Borneo. With a spatially explicit land change/carbon bookkeeping model, parameterized using high-resolution satellite time series and informed by socioeconomic surveys, we assess previous and project future plantation expansion under five scenarios. Although fire was the primary proximate cause of 1989-2008 deforestation (93%) and net carbon emissions (69%), by 2007-2008, oil palm directly caused 27% of total and 40% of peatland deforestation. Plantation land sources exhibited distinctive temporal dynamics, comprising 81% forests on mineral soils (1994-2001), shifting to 69% peatlands (2008-2011). Plantation leases reveal vast development potential. In 2008, leases spanned ∼65% of the region, including 62% on peatlands and 59% of community-managed lands, yet <10% of lease area was planted. Projecting business as usual (BAU), by 2020 ∼40% of regional and 35% of community lands are cleared for oil palm, generating 26% of net carbon emissions. Intact forest cover declines to 4%, and the proportion of emissions sourced from peatlands increases 38%. Prohibiting intact and logged forest and peatland conversion to oil palm reduces emissions only 4% below BAU, because of continued uncontrolled fire. Protecting logged forests achieves greater carbon emissions reductions (21%) than protecting intact forests alone (9%) and is critical for mitigating carbon emissions. Extensive allocated leases constrain land management options, requiring trade-offs among oil palm production, carbon emissions mitigation, and maintaining community landholdings.

Lessons from the historical dynamics of environmental law enforcement in the Brazilian Amazon.

Here, we analyze critical changes in environmental law enforcement in the Brazilian Amazon between 2000 and 2020. Based on a dataset of law enforcement indicators, we discuss how these changes explain recent Amazon deforestation dynamics. Our analysis also covers changes in the legal prosecution process and documents a militarization of enforcement between 2018 and 2022. From 2004 to 2018, 43.6 thousand land-use embargoes and 84.3 thousand fines were issued, targeting 3.3 million ha of land, and totaling USD 9.3 billion in penalties. Nevertheless, enforcement relaxed and became spatially more limited, signaling an increasing lack of commitment by the State to enforcing the law. The number of embargoes and asset confiscations dropped by 59% and 55% in 2019 and 2020, respectively. These changes were accompanied by a marked increase in enforcement expenditure, suggesting a massive efficiency loss. More importantly, the creation of so-called conciliation hearings and the centralization of legal processes in 2019 reduced the number of actual judgments and fines collected by 85% and decreased the ratio between lawsuits resulting in paid fines over filed ones from 17 to 5%. As Brazil gears up to crack-down on illegal deforestation once again, our assessment suggests urgent entry points for policy action.

Indigenous lands, protected areas, and slowing climate change.

Recent climate talks in Copenhagen reaffirmed the crucial role of reducing emissions from deforestation and degradation (REDD). Creating and strengthening indigenous lands and other protected areas represents an effective, practical, and immediate REDD strategy that addresses both biodiversity and climate crises at once.

Modeling spatial decisions with graph theory: logging roads and forest fragmentation in the Brazilian Amazon.

This article addresses the spatial decision-making of loggers and implications for forest fragmentation in the Amazon basin. It provides a behavioral explanation for fragmentation by modeling how loggers build road networks, typically abandoned upon removal of hardwoods. Logging road networks provide access to land, and the settlers who take advantage of them clear fields and pastures that accentuate their spatial signatures. In shaping agricultural activities, these networks organize emergent patterns of forest fragmentation, even though the loggers move elsewhere. The goal of the article is to explicate how loggers shape their road networks, in order to theoretically explain an important type of forest fragmentation found in the Amazon basin, particularly in Brazil. This is accomplished by adapting graph theory to represent the spatial decision-making of loggers, and by implementing computational algorithms that build graphs interpretable as logging road networks. The economic behavior of loggers is conceptualized as a profit maximization problem, and translated into spatial decision-making by establishing a formal correspondence between mathematical graphs and road networks. New computational approaches, adapted from operations research, are used to construct graphs and simulate spatial decision-making as a function of discount rates, land tenure, and topographic constraints. The algorithms employed bracket a range of behavioral settings appropriate for areas of terras de volutas, public lands that have not been set aside for environmental protection, indigenous peoples, or colonization. The simulation target sites are located in or near so-called Terra do Meio, once a major logging frontier in the lower Amazon Basin. Simulation networks are compared to empirical ones identified by remote sensing and then used to draw inferences about factors influencing the spatial behavior of loggers. Results overall suggest that Amazonia's logging road networks induce more fragmentation than necessary to access fixed quantities of wood. The paper concludes by considering implications of the approach and findings for Brazil's move to a system of concession logging.

Role of Brazilian Amazon protected areas in climate change mitigation.

Protected areas (PAs) now shelter 54% of the remaining forests of the Brazilian Amazon and contain 56% of its forest carbon. However, the role of these PAs in reducing carbon fluxes to the atmosphere from deforestation and their associated costs are still uncertain. To fill this gap, we analyzed the effect of each of 595 Brazilian Amazon PAs on deforestation using a metric that accounts for differences in probability of deforestation in areas of pairwise comparison. We found that the three major categories of PA (indigenous land, strictly protected, and sustainable use) showed an inhibitory effect, on average, between 1997 and 2008. Of 206 PAs created after the year 1999, 115 showed increased effectiveness after their designation as protected. The recent expansion of PAs in the Brazilian Amazon was responsible for 37% of the region's total reduction in deforestation between 2004 and 2006 without provoking leakage. All PAs, if fully implemented, have the potential to avoid 8.0 +/- 2.8 Pg of carbon emissions by 2050. Effectively implementing PAs in zones under high current or future anthropogenic threat offers high payoffs for reducing carbon emissions, and as a result should receive special attention in planning investments for regional conservation. Nevertheless, this strategy demands prompt and predictable resource streams. The Amazon PA network represents a cost of US$147 +/- 53 billion (net present value) for Brazil in terms of forgone profits and investments needed for their consolidation. These costs could be partially compensated by an international climate accord that includes economic incentives for tropical countries that reduce their carbon emissions from deforestation and forest degradation.

How to balance land demand conflicts to guarantee sustainable land development.

Severe arable land loss and ecological problems raise attention to protect/develop land for food and ecology demand. Spatial conflict appears in front of multidemand for urbanization, food, and ecology. Our study took China as an example and explicitly outlined spatial preference of urbanization, food, and ecology. From the aspect of land amount, there are enough lands to support multidemand with a surplus of agriculture land of 45.5 × 106 ha. However, spatial conflict widely appears among the multidemands. We tested the impacts of different priorities on urban pattern, crop yield, and ecology and found the priority of food > ecology > urbanization gave the best outcome. Our results verified the importance of including priority of land multidemand to avoid confusion and increase efficiency in the implementation of land policies.

A near real-time web-system for predicting fire spread across the Cerrado biome.

Wildfires are aggravating due to climate change. Public policies need territorial intelligence to prevent and promptly fight fires, especially in vast regions like Brazil. To this end, we have developed a fire-spread prediction system for the Brazilian Cerrado, the biome most affected by wildfires in South America. The system automatically uploads hot pixels and satellite data to calculate maps of fuels loads, vegetation moisture, and probability of burning for simulating fire spread thrice a day for the entire Cerrado at 25 ha and for nine conservation units at 0.04 ha spatial resolution. In both versions, the model attains 65-89% of spatial match. Model results together with ancillary data, e.g., historical burned areas and annual CO2 emissions from fires, are available on an interactive web-platform that serves as a tool for fire prevention and fight, particularly in the selected conservation units where the platform is being used for daily operations.

Modelling conservation in the Amazon basin.

Expansion of the cattle and soy industries in the Amazon basin has increased deforestation rates and will soon push all-weather highways into the region's core. In the face of this growing pressure, a comprehensive conservation strategy for the Amazon basin should protect its watersheds, the full range of species and ecosystem diversity, and the stability of regional climates. Here we report that protected areas in the Amazon basin--the central feature of prevailing conservation approaches--are an important but insufficient component of this strategy, based on policy-sensitive simulations of future deforestation. By 2050, current trends in agricultural expansion will eliminate a total of 40% of Amazon forests, including at least two-thirds of the forest cover of six major watersheds and 12 ecoregions, releasing 32 +/- 8 Pg of carbon to the atmosphere. One-quarter of the 382 mammalian species examined will lose more than 40% of the forest within their Amazon ranges. Although an expanded and enforced network of protected areas could avoid as much as one-third of this projected forest loss, conservation on private lands is also essential. Expanding market pressures for sound land management and prevention of forest clearing on lands unsuitable for agriculture are critical ingredients of a strategy for comprehensive conservation.

Simulating fire regimes in the Amazon in response to climate change and deforestation.

Fires in tropical forests release globally significant amounts of carbon to the atmosphere and may increase in importance as a result of climate change. Despite the striking impacts of fire on tropical ecosystems, the paucity of robust spatial models of forest fire still hampers our ability to simulate tropical forest fire regimes today and in the future. Here we present a probabilistic model of human-induced fire occurrence for the Amazon that integrates the effects of a series of anthropogenic factors with climatic conditions described by vapor pressure deficit. The model was calibrated using NOAA-12 night satellite hot pixels for 2003 and validated for the years 2002, 2004, and 2005. Assessment of the fire risk map yielded fitness values > 85% for all months from 2002 to 2005. Simulated fires exhibited high overlap with NOAA-12 hot pixels regarding both spatial and temporal distributions, showing a spatial fit of 50% within a radius of 11 km and a maximum yearly frequency deviation of 15%. We applied this model to simulate fire regimes in the Amazon until 2050 using IPCC's A2 scenario climate data from the Hadley Centre model and a business-as-usual (BAU) scenario of deforestation and road expansion from SimAmazonia. Results show that the combination of these scenarios may double forest fire occurrence outside protected areas (PAs) in years of extreme drought, expanding the risk of fire even to the northwestern Amazon by midcentury. In particular, forest fires may increase substantially across southern and southwestern Amazon, especially along the highways slated for paving and in agricultural zones. Committed emissions from Amazon forest fires and deforestation under a scenario of global warming and uncurbed deforestation may amount to 21 +/- 4 Pg of carbon by 2050. BAU deforestation may increase fires occurrence outside PAs by 19% over the next four decades, while climate change alone may account for a 12% increase. In turn, the combination of climate change and deforestation would boost fire occurrence outside PAs by half during this period. Our modeling results, therefore, confirm the synergy between the two Ds of REDD (Reducing Emissions from Deforestation and Forest Degradation in Developing Countries).

Brazil's sugarcane embitters the EU-Mercosur trade talks.

The Brazilian government's decision to open the Amazon biome to sugarcane expansion reignited EU concerns regarding the sustainability of Brazil's sugar sector, hindering the ratification of the EU-Mercosur trade agreement. Meanwhile, in the EU, certain conventional biofuels face stricter controls, whilst uncertainty surrounding the commercialisation of more sustainable advanced-biofuels renders bioethanol as a short- to medium-term fix. This paper examines Brazil's land-use changes and associated greenhouse gas emissions arising from an EU driven ethanol import policy and projections for other 13 biocommodities. Results suggest that Brazil's sugarcane could satisfy growing ethanol demand and comply with EU environmental criteria, since almost all sugarcane expansion is expected to occur on long-established pasturelands in the South and Midwest. However, expansion of sugarcane is also driven by competition for viable lands with other relevant commodities, mainly soy and beef. As a result, deforestation trends in the Amazon and Cerrado biomes linked to soy and beef production could jeopardize Brazil's contribution to the Paris agreement with an additional 1 ± 0.3 billion CO2eq tonnes above its First NDC target by 2030. Trade talks with a narrow focus on a single commodity could thus risk unsustainable outcomes, calling for systemic sustainability benchmarks, should the deal be ratified.

Deforestation reduces rainfall and agricultural revenues in the Brazilian Amazon.

It has been suggested that rainfall in the Amazon decreases if forest loss exceeds some threshold, but the specific value of this threshold remains uncertain. Here, we investigate the relationship between historical deforestation and rainfall at different geographical scales across the Southern Brazilian Amazon (SBA). We also assess impacts of deforestation policy scenarios on the region's agriculture. Forest loss of up to 55-60% within 28 km grid cells enhances rainfall, but further deforestation reduces rainfall precipitously. This threshold is lower at larger scales (45-50% at 56 km and 25-30% at 112 km grid cells), while rainfall decreases linearly within 224 km grid cells. Widespread deforestation results in a hydrological and economic negative-sum game, because lower rainfall and agricultural productivity at larger scales outdo local gains. Under a weak governance scenario, SBA may lose 56% of its forests by 2050. Reducing deforestation prevents agricultural losses in SBA up to US$ 1 billion annually.

Proposed Legislation to Mine Brazil's Indigenous Lands Will Threaten Amazon Forests and Their Valuable Ecosystem Services.

A recent proposal to regulate mining within Indigenous Lands (ILs) threatens people and the unique ecosystems of Brazil's Legal Amazon. Here, we show that this new policy could eventually affect more than 863,000 km2 of tropical forests-20% more than under current policies-assuming all known mineral deposits will be developed and impacts of mining on forests extend 70 km from lease boundaries. Not only are these forests home to some of the world's most culturally diverse communities, they also provide at least US $5 billion each year to the global economy, producing food, mitigating carbon emissions, and regulating climate for agriculture and energy production. It is unclear whether new mines within ILs will be required to compensate for their direct and indirect environmental and social impacts but failing to do so will have considerable environmental and social consequences.

Local conditions and policy design determine whether ecological compensation can achieve No Net Loss goals.

Many nations use ecological compensation policies to address negative impacts of development projects and achieve No Net Loss (NNL) of biodiversity and ecosystem services. Yet, failures are widely reported. We use spatial simulation models to quantify potential net impacts of alternative compensation policies on biodiversity (indicated by native vegetation) and two ecosystem services (carbon storage, sediment retention) across four case studies (in Australia, Brazil, Indonesia, Mozambique). No policy achieves NNL of biodiversity in any case study. Two factors limit their potential success: the land available for compensation (existing vegetation to protect or cleared land to restore), and expected counterfactual biodiversity losses (unregulated vegetation clearing). Compensation also fails to slow regional biodiversity declines because policies regulate only a subset of sectors, and expanding policy scope requires more land than is available for compensation activities. Avoidance of impacts remains essential in achieving NNL goals, particularly once opportunities for compensation are exhausted.