Overview
- Brazil unveiled the Tropical Forests Forever Facility in Belém with more than $5.5 billion in initial pledges, including $3 billion from Norway over ten years and $1 billion each from Brazil and Indonesia, and endorsements from 53 countries.
- The fund targets $125 billion in capital—$25 billion in sovereign seed money plus $100 billion from private investors—to be invested largely in bonds, with the World Bank serving as trustee and interim host.
- Payments of up to $4 per hectare per year are tied to annual satellite verification and can be reduced if investment returns fall short, with deforestation penalties reaching $800 per hectare and fire-related degradation counted as 35 hectares lost.
- At least 20% of each participating country’s allocation must go to Indigenous and local communities, though national authorities decide the channels and these transfers may not be direct cash.
- NGOs and Indigenous groups express guarded support but warn the investor-first design could shift financial risks to developing countries; key next steps include finalizing investment exclusion rules and appointing external asset managers.