A new ambitious initiative has emerged at the COP30 UN climate conference in Brazil, aiming to secure $125 billion US to protect tropical forests. The Tropical Forests Forever Facility, led by Brazil, seeks to incentivize countries to curb deforestation within their borders while also generating funding for clean energy projects in developing nations. This facility functions as an investment fund, with contributions from donor countries and the private sector.
Norway’s environment minister, Andreas Bjelland Eriksen, emphasized the need to transition from reducing deforestation to permanently safeguarding tropical rainforests. The Tropical Forests Forever Facility aims to establish a sustainable revenue stream that makes preserving forests more lucrative than clearing them.
Major contributions to the fund include $3 billion US from Norway, $1 billion US each from Brazil and Indonesia, and $500 million from France. Brazilian officials are optimistic about raising an initial $10 billion US within the first year of the proposal, with over half already committed.
The initiative comes in response to record levels of tropical forest loss in 2024, despite past efforts to combat deforestation. The current proposal involves investing in bonds issued by developing countries for clean energy projects, with interest earnings used to compensate countries for forest preservation.
Brazil, a country with experience in forest protection mechanisms, has operated the Amazon Fund since 2008, receiving donations from countries like Norway, Germany, and the U.S. The new forest facility aims to scale up conservation efforts significantly, with a target of $25 billion US from donor countries and additional funding from philanthropic and private sectors.
The Tropical Forests Forever Facility is set to support over 70 tropical nations hosting more than one billion hectares of forest, with a commitment to allocate 20% of funds directly to Indigenous communities. Once fully operational, the facility is projected to generate approximately $4 billion US annually for conservation initiatives. Norway’s Eriksen highlighted the global significance of forest preservation, stressing the mutual benefit for countries like Brazil and Norway.
While several countries have made substantial pledges, Canada has yet to declare any contribution to the initiative. Environment Minister Julie Dabrusin is expected to participate in COP30 discussions this week.
