Brazil has proposed the Tropical Forests Forever Fund (TFFF), a mechanism to reward countries that conserve tropical forests and penalize forest loss, verified by satellite. The fund could provide up to $4 billion a year, paying $4 per hectare preserved and charging $140 per hectare lost, and aims to support around 70 developing nations with up to 20% of resources for indigenous communities. An initial voluntary $25 billion from wealthy countries — potentially including Germany, UAE, France, Norway and the UK — would be used to attract an estimated $100 billion from private investors; Brazil pledged $1 billion. Environmental groups welcomed the move but warned the fund must avoid investing in activities that harm nature; UN leaders stressed urgency on climate targets.
Lula Unveils 'Tropical Forests Forever Fund' to Reward Forest Protection Ahead of COP30
Brazil has proposed the Tropical Forests Forever Fund (TFFF), a mechanism to reward countries that conserve tropical forests and penalize forest loss, verified by satellite. The fund could provide up to $4 billion a year, paying $4 per hectare preserved and charging $140 per hectare lost, and aims to support around 70 developing nations with up to 20% of resources for indigenous communities. An initial voluntary $25 billion from wealthy countries — potentially including Germany, UAE, France, Norway and the UK — would be used to attract an estimated $100 billion from private investors; Brazil pledged $1 billion. Environmental groups welcomed the move but warned the fund must avoid investing in activities that harm nature; UN leaders stressed urgency on climate targets.
Brazilian President Luiz Inácio Lula da Silva on Thursday unveiled the Tropical Forests Forever Fund (TFFF), a multibillion-dollar proposal designed to financially reward countries that conserve tropical forests. The announcement came as leaders gathered in Belém ahead of next week’s UN Climate Change Conference (COP30).
How the fund would work: The TFFF could channel up to $4 billion per year to support forest protection. Participating countries would receive a premium of $4 per hectare per year for standing forest. By contrast, countries would face a penalty of $140 for every hectare lost, with compliance and losses verified through satellite imagery and monitoring systems.
Under the plan, roughly 70 developing nations that host tropical forests could qualify for payments. Up to one-fifth of the fund's resources would be earmarked for indigenous peoples and local communities who protect and depend on forests.
Financing and founding partners: Wealthier nations would be asked to provide an initial, voluntary public contribution of $25 billion. Potential early donors named include Germany, the United Arab Emirates, France, Norway and the United Kingdom. That public seed is intended to help leverage an estimated $100 billion from private investors over the coming years. Founding member countries besides Brazil include Colombia, Ghana, the Democratic Republic of Congo, Indonesia and Malaysia. Brazil pledged $1 billion at the UN General Debate in New York.
Responses and concerns
Environmental groups welcomed the political signal but urged safeguards. Greenpeace said the fund should not be allowed to invest in activities that damage nature or drive climate pollution merely to chase higher returns. "That would be counterproductive," said Greenpeace expert Jannes Stoppel, who also called on COP30 to adopt a binding action plan to end deforestation by 2030.
UN Secretary-General António Guterres, speaking separately, criticized the world's failure to limit warming to the Paris Agreement target of 1.5°C as a "moral failure" and "deadly negligence," warning that continued reliance on fossil fuels makes breaching that limit by the early 2030s increasingly likely.
The TFFF proposal represents a prominent effort to shift more leadership and financing toward Global South countries that host the world’s most important tropical forests. If implemented, the fund would pair financial incentives with satellite verification and targeted support for indigenous communities — but details on governance, safeguards and investment rules will determine its long-term effectiveness and credibility.