A new initiative at the COP30 UN climate conference in Brazil is shaping up to protect tropical forests by raising $125 billion US and providing direct payments to developing countries to stop deforestation. The Tropical Forests Forever Facility, spearheaded by Brazil, is designed to incentivize countries that can reduce deforestation while also generating funds for clean energy projects in developing nations. Norway’s environment minister, Andreas Bjelland Eriksen, emphasized the need to transition from merely reducing deforestation to permanently safeguarding tropical rainforests.
Key contributions to the facility include $3 billion US from Norway, $1 billion each from Brazil and Indonesia, and $500 million from France. Brazilian officials aim to secure an initial $10 billion US for the fund in its first year, with optimistic prospects as more than half of the target has already been pledged. The concept behind the Tropical Forests Forever Facility is to create a sustainable revenue stream that makes preserving forests more financially attractive than clearing them.
The fund is structured as an investment mechanism, with donor countries and the private sector providing capital. The goal is not only conservation but also investment in developing countries, leveraging the same forests it seeks to protect. This initiative comes as tropical forest loss reached record levels in 2024, highlighting the urgent need for innovative solutions to combat deforestation and mitigate climate change impacts.
The proposed model involves investing in bonds issued by developing countries for clean energy projects, with returns used to compensate nations based on the extent of tropical forest preservation. Brazilian President Luiz Inácio Lula da Silva stressed the global significance of the Amazon rainforest and urged collective action to prevent its destruction. The initiative aims to support over 70 tropical countries, allocating 20% of funds directly to Indigenous communities within those regions. Once fully operational, the Tropical Forests Forever Facility is projected to generate approximately $4 billion US annually for conservation efforts.
While several countries have made substantial pledges, specific operational details and fund allocation strategies are still being finalized. Brazil’s experience with the Amazon Fund, which has raised $853 million US since 2008, provides a foundation for the new, more ambitious forest protection fund. The ultimate goal is to secure an initial $25 billion US investment from donor countries, with additional funding expected from philanthropic and private sectors. The success of this initiative relies on global cooperation and commitment to preserving vital tropical ecosystems.