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9h ago

Brazil Launches Tropical Forests Forever Fund at COP30 as India Joins as Observer

The endowment-style fund will invest in high-yield bonds to generate returns for results-based payments to tropical forest countries.

FILE - Cows roam an area recently deforested in the Chico Mendes Extractive Reserve, Acre state, Brazil, Dec. 6, 2022. (AP Photo/Eraldo Peres, File)
TFFF roundtable in Belém, Brazil on Nov. 6. Image courtesy of Fernando Donasci/MMA.
The rainforest in Gabon. A new proposal, led by Brazil, aims to raise billions annually to pay countries like Gabon for protecting their tropical forests.
A general view of the Leaders’ Round Table during the launch of the Tropical Forest Forever Facility (TFFF) in the framework of the COP30 UN Climate Change Conference in Belem, Para State, Brazil, on Thursday. (AFP)

Overview

  • More than 53 nations endorsed the facility and initial pledges exceed $5.5 billion, including $3 billion from Norway and $1 billion each from Brazil and Indonesia, with the World Bank named trustee and interim host.
  • Countries can earn up to $4 per hectare per year for standing forest, with steep discounts tied to deforestation rates and fire-related degradation verified by satellite monitoring.
  • At least 20% of each country’s payout must be directed to Indigenous and local communities, though governments may choose the delivery channel rather than direct cash transfers.
  • The facility prioritizes investor repayments and interest, invests largely in emerging‑market bonds, and reduces per‑hectare payments if market returns fall short.
  • Civil society groups warn the design could shift financial risk to developing nations and finance harmful ‘clean’ projects as exclusion lists and governance details continue to be negotiated.