At a climate summit in Belem, Brazil, world leaders unveiled the Tropical Forests Forever Facility, securing over $5 billion in initial pledges to reward tropical countries for preserving forests.
The facility, championed by Brazil's President Luiz Inacio Lula da Silva, aims to grow into a $125 billion fund. It will reward eligible developing countries1020—over 70 identified so far—for each hectare of forest they keep standing, while offering returns to private investors through bonds in emerging markets.
Initial commitments include $1 billion each from Brazil and Indonesia, a 30 billion kroner loan pledge from Norway, 500 million euros from France, and contributions from Portugal and Germany. Organizers hope to raise $10 billion in government funds within a year and expand to $25 billion to unlock an additional $100 billion in private investment.
“Things can change—this is a long-term project,” said Mauricio Lyrio, Brazil's chief climate negotiator. Finance Minister Fernando Haddad added that they have already surpassed 50% of their interim goal ahead of the next UN climate conference in 2026.
Advocates say the fund creates a reliable revenue stream, offering tropical regions an alternative to deforestation-driven growth and tackling climate change and biodiversity loss in one stroke.
Reference(s):
World leaders launch fund to save forests, get first $5 billion
cgtn.com
