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5h ago

Brazil’s Tropical Forests Forever Fund Launches With $5.5 Billion Pledged as India Joins as Observer

The World Bank will serve as interim trustee for an endowment-style facility targeting $125 billion that ties payments to verified forest retention with steep penalties for deforestation.

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.
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)
Brazilian Environment Minister Marina Silva at a Nov. 6 press conference. Image courtesy of Fernando Donasci/MMA.

Overview

  • Fifty-three countries endorsed the launch, including 34 tropical forest nations covering over 90% of developing-country tropical forests.
  • Eligible countries can earn up to $4 per hectare of standing forest per year, with discounts that can reach $800 per hectare cleared and verification based on annual satellite data.
  • The fund prioritizes repayment to private investors before distributing remaining profits to forest countries, and per-hectare payments can be reduced if investment returns fall short.
  • Initial pledges exceed $5.5 billion, led by Norway’s $3 billion commitment and $1 billion each from Brazil and Indonesia, with additional smaller contributions and conditional signals from several donors.
  • At least 20% of each country’s payout must go to Indigenous and local communities, though civil society groups warn about investor-first risk, indirect access for frontline stewards, and the need for tighter investment exclusions.