Overview
- Brazil unveiled the Tropical Forest Forever Facility at a leaders’ summit before COP30, with more than 50 countries endorsing the initiative to pay for conserving tropical forests and penalize verified losses.
- The facility targets a $125 billion endowment after an initial public seed—starting around $10 billion—to finance annual per-hectare premiums of about $4 based on satellite monitoring, with one fifth of funds aimed at indigenous and local communities.
- Early pledges include $1 billion each from Brazil and Indonesia and up to 30 billion Norwegian kroner from Norway over coming years, while France is considering €500 million and Germany promised a “substantial” contribution without specifying an amount.
- Economists and policy experts question the reliability of returns-funded payouts given market volatility, and Brazilian officials acknowledge payments could be paused in exceptional financial crises, leaving governance and technical design still to be finalized.
- The launch lands as new analysis from Climate Analytics and PIK outlines a highest-ambition path that could lower warming to roughly 1.2°C by 2100 after a multi-decade overshoot, and as the EU’s revised NDC allowing limited international credits draws criticism.