Norway has warned Brazil to stop chopping down the Amazon rainforest - or risk a significant cut in funding.

Prime Minister Erna Solberg announced on Friday that Norway would cut its contribution to the Amazon Fund by half if Brazil failed to curb deforestation.

Managed by the Brazilian Development Bank, the Amazon Fund raises money from international donors to prevent, monitor and combat deforestation.

And while Norway has donated billions to support conservation of rainforests, official Brazilian figures indicate that they are being cut down at their fastest rate in more than a decade.

Speaking after an Oslo meeting with Brazilian President Michel Temer, Ms Solberg said that Norway's contribution was "based on results" and would be reconsidered according to deforestation figures for the year.


"If preliminary figures about deforestation in 2016 are confirmed, it will lead to a reduced payout in 2017," she said.

Image: Norwegian Prime Minister Erna Solberg (R) and Brazilian President Michel Temer in Oslo

The last decade has seen environmental gains in the Amazon, and between 2011 and 2015 there was a significant slowdown in forest depletion.

But Brazil's efforts in fighting the destruction of rainforests come under serious scrutiny more recently.

Last year deforestation in the Amazon jumped by 29% compared to 2015, with 8,000 square kilometres thought to have been lost - an area equivalent to the Greek island of Crete.

And this year Brazil's parliament voted in favour of legislation that would allow 1.4 million acres of land, currently under environmental protection, to be used for logging, mining and agriculture.

Mr Temer said he had vetoed the legislation, but the rainforests still are not safe: Brazil's Environment Minister is reportedly working on passing a similar law.

Mr Temer declined questions from the media but told journalists that Norwegian funding had strengthened the fight against deforestation.

He said the country was working to protect the Amazon by developing national parks, describing Brazil as "one of the biggest, if not the biggest, environmental reserves in the world."