Tropical Forest Forever Facility reaches USD 5.5B in funding
The Tropical Forest Forever Facility (TFFF) is a financing model that combines public and private investments and allocates resources to countries with tropical forests that work to preserve these areas.
In addition to Brazil, which made an initial contribution of USD 1 billion, Norway (USD 3 billion), Indonesia (USD 1 billion), and France (USD 500 million) also announced their contributions during the Climate Summit preceding COP30.
In practice, countries that succeed in recovering and maintaining their forests will be financially rewarded for their efforts. They will receive funds only after satellite imagery confirms that deforestation levels remain below predefined limits. Conversely, deductions will be applied for each hectare that is deforested or degraded.
The rationale behind the TFFF is that tropical forests in countries such as Brazil, Colombia, Peru, Indonesia, the Democratic Republic of Congo, and Ghana regulate the global climate, provide fresh water, and harbor biodiversity essential to life on Earth. They generate benefits that extend far beyond the territories where they are located, contributing to the well-being and very survival of humanity.
Initiative
“The idea was announced by President Luiz Inácio Lula da Silva in 2023, during COP28 in Dubai, with the support of five countries with tropical forests - Colombia, Ghana, the Democratic Republic of Congo, Indonesia, and Malaysia. The fund will become operational this year, following its official launch on Thursday (Nov. 6) at the Climate Summit preceding the United Nations Climate Change Conference (COP30), which begins on Monday (Nov. 10) in Belém, northern Brazil.
Brazil made its first contribution of USD 1 billion to the fund during the UN General Assembly in New York in September. The TFFF has been a central topic of debate at the Climate Summit, which concludes this Friday (7).
Operation
The TFFF differs from traditional models, such as donation-based funds, because it pays for results rather than financing projects and rewards the preservation of standing forests.
Furthermore, it envisions a leading role for indigenous peoples and traditional communities, who play a direct role in protecting forests. The mechanism proposes allocating at least 20 percent of national payments to these populations.
Expectations
The proposal aims to raise USD 25 billion from investing countries during COP30. This contribution is expected to attract private sector capital and, consequently, raise a total of USD 125 billion to be invested in the conservation of tropical forests.
According to the Brazilian Ministry of the Environment, the goal is to mobilize approximately USD 4 billion per year to be distributed among countries with tropical forests. This amount representes three to four times the discretionary budgets of the Environment Ministries of the main forest-producing countries.
Therefore, the TFFF is expected to have a transformative impact on national forest conservation policies.
