Germany's €1 billion ($1.15 billion) contribution to Brazil's newly created rainforest fund was described as "very well invested money" by Environment Minister Carsten Schneider on the sidelines of the UN Climate Change Conference (COP30) in Belém.
Schneider confirmed the payment will be made as a direct capital transfer and emphasized it is a grant—not a loan or guarantee. "We are not giving any credit here, nor are we giving any guarantees. We are giving money, real capital," he said, underscoring the German government's commitment.
The pledge supports President Luiz Inácio Lula da Silva's Tropical Forest Forever Facility (TFFF), a mechanism designed to financially reward countries that conserve their rainforests and to impose penalties for forest loss measured by satellite monitoring. Brazilian Environment Minister Marina Silva announced the size of Germany's commitment, which will be spread over a ten-year period.
"Without tropical forests, humanity would be in a poor state," Schneider said, warning that a degraded Amazon would have serious consequences beyond the region: "If the Amazon is in bad shape, we will feel dramatic effects in Germany."
Brazil estimates the TFFF could eventually reach a target volume of $125 billion. After an initial start-up phase, the fund might disburse roughly $4 billion a year—nearly three times current international forest finance—providing sustained incentives to protect standing forest instead of clearing it.
Rainforests act as the planet's "green lungs," absorbing large amounts of greenhouse gases, cooling the atmosphere through evaporation, and supporting extraordinary biodiversity. Despite their importance, they remain under pressure from land conversion for agriculture and pasture, as well as from illegal activities such as gold mining.
Schneider and other proponents say the TFFF aims to change economic incentives so that sustainable livelihoods from intact forests become more attractive than revenue from deforestation. The combination of direct finance, satellite monitoring and financial penalties is intended to align conservation outcomes with global climate and biodiversity goals.
