Brazil Says Tropical Forest Fund Could Exceed $10 Billion as Germany Weighs Pledge

Overview

• Finance Minister Fernando Haddad said US$5.5 billion is already committed toward the Tropical Forests Forever Fund, which targets US$10 billion.
• He said German representatives signaled a “considerable” investment and are expected to announce their contribution by year-end, potentially pushing totals past the target.
• Industry group CNSeg argued the fund’s low risk, positive returns and liquidity position it to attract “billions and billions” in private capital.
• The insurance sector urged Brazil’s National Treasury to issue green bonds domestically, noting the Treasury has so far issued such bonds only in overseas markets.
• Experts described the fund as a payment-for-results mechanism that compensates developing countries for conserving tropical forests, a concept Brazil advanced in Dubai two years ago.