Tropical countries from Cameroon to Colombia could earn tens of millions of dollars annually under a new initiative aimed at preserving the world’s rainforests, set to be unveiled at the COP30 climate summit in Brazil.
The Tropical Forests Forever Facility (TFFF) is scheduled to be launched on Thursday as world leaders gather in the Brazilian Amazon for this year’s UN climate negotiations. The facility forms part of Brazil’s ambitious plan to raise $125 billion from governments and private investors to support rainforest conservation.
Why is the fund needed?
Most of the world’s primary rainforests are located in developing tropical nations, where economic incentives to cut down trees often outweigh those to protect them. Despite some progress, global deforestation remains alarmingly high — with the equivalent of 18 football fields of primary forest lost every minute in 2024.
Rainforests play a vital role in maintaining biodiversity and regulating global temperatures. Their destruction releases vast amounts of stored carbon, accelerating climate change.
How will the fund work?
The initiative’s structure relies on a $25 billion contribution from “sponsor” governments, which would absorb potential losses and encourage private investors to participate. By sharing the risk, Brazil hopes to attract an additional $100 billion from institutional investors such as pension and sovereign wealth funds.
The pooled capital will be invested in emerging markets to generate returns. After investors are repaid with interest, the remaining profits will be distributed to tropical countries that maintain low deforestation rates, verified through satellite monitoring.
Who will benefit?
Brazil projects that the fund could generate around $4 billion annually for conservation efforts, benefiting 74 forest-rich nations that meet the eligibility criteria. Only countries with an annual deforestation rate below 0.5 percent would qualify, and continued compliance would be required to sustain payments.
Major forested nations — including Brazil, Indonesia, and the Democratic Republic of Congo — could potentially earn hundreds of millions of dollars each year if they successfully curb deforestation.
Will it work?
So far, Brazil is the only country to have pledged funds, committing $1 billion to the facility. Indonesia has announced plans to invest but has yet to specify an amount. Finance Minister Fernando Haddad expressed optimism that Brazil would raise about $10 billion by the end of next year.
However, some diplomats remain cautious, citing concerns over monitoring mechanisms and whether the fund can achieve the high credit rating required to attract large-scale private investment.
“If successful, this will be operating forever — protecting forests forever,” said Voivodic, one of the initiative’s architects. “It’s much better to do that than keep waiting for another solution that is perfect. There is no silver bullet.”
