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Germany Pledges €1 Billion to New Tropical Forest Fund as COP30 Backs World Bank-Run Facility

The facility aims to channel market returns to countries that keep deforestation low under satellite-verified rules.

Overview

  • Roughly 50 countries at the Belém climate summit agreed to establish the Tropical Forests Forever Facility, to be managed by the World Bank as an investment fund.
  • Germany will contribute €1 billion over ten years, joining pledges of about $1 billion each from Brazil and Indonesia, roughly $3 billion from Norway, €500 million from France, and $1 million from Portugal.
  • The financing model envisions around $25 billion in public risk capital to mobilize about $100 billion from private investors, who would receive priority on returns.
  • Eligible nations must keep annual deforestation below 0.5%, with payments withheld or clawed back for noncompliance based on satellite monitoring.
  • Diplomats, experts and NGOs question verification, credit ratings and achievable yields, even as groups such as Greenpeace and Germanwatch welcomed Germany’s move and WWF labeled the sum disappointing.