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Itaipu is nestled in a rich ecosystem of great biological diversity, albeit threatened by the action of man. On the Brazilian side, it is located between two national parks: Iguazu and Ilha Grande.

Located on the dam's area, the Iguazu National Park is one of the last remaining reserves of Atlantic Forest of the semideciduous stationary type in Brazil and the world's largest subtropical rain forest.

Located at the entrance to the reservoir in Guaíra, the Ilha Grande National Park makes the transition between the semideciduous stationary forest, the Cerrado and Pantanal.

The reservoir banks, especially on the Brazilian side, started suffering the effects of agriculture and cattle breeding even before Itaipu was built.

In 1976, a study conducted on the remaining forests in the area of the Paraná River showed that the Brazilian bank had only 23% of forests and 24.7% of exploited woods undergoing natural rehabilitation, while agriculture already covered 50.3% of the land.

Still according to that survey, urban areas and pine tree- and eucalyptus-based reforestation projects accounted for only 2% of the total Brazilian river bank.

A bold reforestation project promoted by Itaipu on the reservoir banks has changed that picture. Today, a vegetation strip protects over 98% of the reservoir.

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