A new ambitious strategy to safeguard tropical forests is in progress at the COP30 UN climate conference in Brazil. The initiative, known as the Tropical Forests Forever Facility (TFFF), aims to raise $125 billion US to incentivize developing countries to cease deforestation activities.
Under the leadership of Brazil, the TFFF will reward nations that successfully limit deforestation within their borders while also funding clean energy projects in developing nations. The facility functions as an investment fund, with contributions from donor countries and the private sector.
Norway’s environment minister, Andreas Bjelland Eriksen, emphasized the importance of transitioning from reducing deforestation to permanently protecting tropical rainforests. Norway has pledged $3 billion US, leading the contributions to the forest facility, followed by Brazil with $1 billion, Indonesia with $1 billion, and France with $500 million.
Brazil anticipates raising an initial $10 billion US in the first year of the fund proposal, with over half of that amount already pledged. The TFFF aims to drive investments into developing countries with tropical forests to make it financially advantageous to preserve forests rather than cut them down.
As tropical forest loss reached record levels in 2024, the need to protect these biodiverse regions and vital carbon sinks has become more urgent. The TFFF’s innovative financing model involves investing in bonds issued by developing countries for clean energy projects, using the interest earned to compensate countries for preserving tropical forests.
In an impassioned speech at COP30, Brazilian President Luiz Inácio Lula da Silva emphasized the global significance of the Amazon rainforest and called for international action to prevent its collapse. Brazil’s experience with the Amazon Fund, which incentivizes reduced deforestation, will inform the operation of the new forest facility.
The new fund aims to garner $25 billion US from donor countries as an initial investment, leading to a total of $125 billion US from various sources. It will provide support to over 70 tropical countries hosting more than one billion hectares of forest, with 20% of funding directed towards Indigenous communities. Once fully operational, the forest facility is projected to generate around $4 billion US annually for conservation efforts.
While Canada has not yet committed to contributing to the forest facility, Environment Minister Julie Dabrusin will be present at COP30.