Overview
- Unveiled Nov. 6 in Belém ahead of COP30, the Tropical Forests Forever Facility reported more than $5.5 billion in initial pledges, including $3 billion from Norway and $1 billion each from Brazil and Indonesia.
- Participating countries can receive up to $4 per hectare of standing forest annually, with penalties reaching $800 per hectare of deforestation that can rapidly erode payouts.
- A minimum of 20% of each country’s allocation must go to Indigenous and local communities, with national governments deciding the distribution approach rather than defaulting to direct cash transfers.
- Disbursements require demonstrated forest retention and depend on fund performance, as capital will be invested largely in high‑yield emerging‑market bonds and the per‑hectare rate is reduced if profits fall short.
- More than 50 civil society organizations warn the structure could shift financial risk onto developing countries, exacerbate debt, and permit harmful projects unless exclusion rules, oversight, and governance are strengthened; fossil fuel investments are barred, with other limits still being negotiated.