Overview
- President Luiz Inácio Lula da Silva unveiled the Tropical Forest Forever Facility with Brazil committing $1 billion and an initial public target of $25 billion plus up to $100 billion sought from private investors.
- Norway signaled up to $3 billion over ten years and France $500 million, while Germany backed placing the facility under the World Bank but offered no concrete funding as Chancellor Friedrich Merz arrived without a pledge.
- The fund would invest its capital and pay annual premiums of about $4 per hectare to countries that keep annual forest loss under 0.5%, with a $140 per hectare charge proposed for areas destroyed.
- At least 20% of disbursements are slated to go directly to Indigenous peoples and local communities under the proposal.
- Diplomats and NGOs question verification procedures, creditworthiness to attract investors, and the risk of greenwashing, highlighting uncertainty over whether projected returns can sustain promised payouts.