More than $5.5 billion in new commitments were announced at COP30 as world leaders launched the Tropical Forest Forever Facility, a first-of-its-kind mechanism designed to finance the protection and restoration of tropical forests permanently.
Hosted by President Luiz Inácio Lula da Silva at the Belém Climate Summit, the high-level event drew leaders from over 30 countries, the UN Secretary-General and the World Bank, which will serve as interim host and trustee.
Fifty-three nations have endorsed the TFFF Launch Declaration, including 34 tropical forest countries that together represent over 90 percent of the world’s developing-country tropical forests.
Historic Commitments Signal Shift in Global Forest Finance
Norway pledged $3 billion over ten years, subject to conditions, while Brazil and Indonesia reaffirmed $1 billion each.
France said it would consider committing up to €500 million ($578 million) by 2030, Portugal announced $1 million, and the Netherlands pledged $5 million for the secretariat.
Germany expressed full support and will confirm its contribution after talks between President Lula and Chancellor Friedrich Merz.
The TFFF’s $5.5 billion launch total marks the first stage of an ambitious plan to build a $125 billion blended finance fund combining $25 billion in sovereign sponsor capital with $100 billion from institutional investors.
A New Global Mechanism to Reward Forest Protection
Led by Brazil in partnership with countries including Indonesia, Ghana, Malaysia and the Democratic Republic of Congo, the TFFF aims to pay countries for maintaining forest cover rather than clearing it.
The facility will use satellite-based monitoring to verify annual performance and make results-based payments to participating nations.
At least 20 percent of payments will go directly to Indigenous Peoples and local communities. “The TFFF boldly and justly acknowledges the essential role of Indigenous Peoples and traditional communities in forest protection,” said Brazilian Minister of Indigenous Peoples Sonia Guajajara.
Backed by the World Bank and Designed for Longevity
The TFFF will operate through two entities: the Tropical Forest Forever Facility, which manages performance monitoring and disbursement, and the Tropical Forest Investment Fund, which raises and invests capital through a diversified fixed-income portfolio.
The World Bank will serve as the trustee and interim secretariat.
The TFIF’s investment model is designed to be self-sustaining. Returns from global bond investments will finance annual “forest payments” to tropical forest countries, ensuring long-term stability beyond political and budgetary cycles.
According to the facility’s concept note, the mechanism could support over 1 billion hectares of tropical forests in more than 70 developing countries and nearly triple current international finance for forests.
“A Turning Point for Tropical Forest Conservation”
President Lula hailed the launch as “an unprecedented initiative” that places the Global South in the lead on forest protection. “It is symbolic that this celebration is taking place here in Belém, in the heart of the Amazon rainforest,” he said.
Brazil’s Environment Minister Marina Silva called the initiative “a turning point in the history of tropical forest conservation,” while Finance Minister Fernando Haddad said it “combines climate ambition with international cooperation” by merging sovereign and private capital in a new international financial architecture.
Norwegian Prime Minister Jonas Gahr Støre added that the facility can provide “stable, long-term funding” to tropical nations, emphasizing the urgency of halting deforestation to curb climate change and biodiversity loss.
Next Steps Toward Implementation
With the World Bank confirmed as trustee, the next milestone will be the creation of the Tropical Forest Investment Fund under a national jurisdiction, enabling operations to begin.
Future steps include credit rating assessments, finalizing governance structures and expanding partnerships with investors.
According to UNEP, global forest protection and restoration require $66.7 billion annually. The TFFF aims to fill a critical gap in the environmental finance landscape by valuing ecosystem services and rewarding forest stewardship at scale.
“The Tropical Forest Forever Facility is a once-in-a-generation opportunity,” Silva said. “It creates a new cycle of prosperity that binds climate action and forest protection in one shared global mission.”
