World Bank Board Approves Role Administering Brazil-Led Tropical Forests Fund
The move gives the new conservation finance vehicle governance and fiduciary oversight as it begins raising a $125 billion blend of sovereign and private capital.
Overview
- The Bank will act as the fund’s administrator and temporarily host its secretariat following board approval.
- Its mandate includes fiduciary supervision, transparency reporting and managing disbursements to governments under the fund’s guidelines.
- The Brazil-led mechanism aims to incentivize countries to maintain forest conservation efforts.
- Brazil has pledged $1 billion, announced by President Luiz Inácio Lula da Silva in September at the United Nations, to help attract additional contributors.
- Finance Minister Fernando Haddad said the decision turns the initiative from an idea into an operational reality and adds institutional credibility.