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Brazil Says Tropical Forests Fund Draws Positive Reception, Targets $10 Billion Next Year

Brazil pitches an investment-style fund to reward countries with near-zero deforestation.

Overview

  • Finance Minister Fernando Haddad called the Tropical Forests Forever Fund the flagship of Brazil’s COP30 presidency.
  • He said some governments could issue initial expressions of support as soon as next week, setting up a year of fundraising.
  • The plan seeks about US$10 billion in public capital by next year to finance payments to forest-preserving nations.
  • The fund would borrow at low rates, lend at higher rates, and use the spread to pay countries keeping annual deforestation at or below 0.5%.
  • Haddad said the World Bank indicated willingness to help launch operations as an implementing agent, and he urged creation of a structured carbon market and legislative incentives and penalties.