Pay to Protect: Brazil Pitches New Forest Fund at COP30

AFP/APP

Paris: Tropical nations from Cameroon to Colombia could soon earn millions annually under a new plan to protect the world’s rainforests, to be launched at the COP30 summit in Brazil.

The Tropical Forests Forever Facility (TFFF) — Brazil’s flagship proposal — will be unveiled this Thursday as global leaders gather in the Amazon for this year’s UN climate talks.

Brazil aims to raise $125 billion from governments and private investors to create a global fund that rewards developing countries for every hectare of forest they preserve.

Why It’s Needed

Most of the planet’s primary rainforests lie in poorer tropical nations where cutting trees is often more profitable than conserving them.

Decades of pledges from wealthy nations to finance anti-deforestation efforts have largely failed to materialize, said Joao Paulo de Resende, special climate advisor at Brazil’s finance ministry.

Despite national-level improvements — including in Brazil — global deforestation remains alarming: in 2024, the world lost the equivalent of 18 football fields of primary forest every minute.

These forests are vital to biodiversity and climate regulation. Their destruction releases vast amounts of carbon, accelerating global warming.

How the Fund Works

The proposed TFFF would create a steady, long-term revenue stream to make conservation economically viable.

It plans to first raise $25 billion from “sponsor” governments willing to take on higher financial risk. This backing would help attract an additional $100 billion from private investors such as pension and sovereign funds.

The combined capital will be invested in emerging markets to generate profits. After paying investor returns, the remaining proceeds will go to tropical countries with low deforestation rates, verified via satellite data.

Unlike traditional carbon markets or aid-based models, the fund aims to be self-sustaining and profitable for both forest nations and investors, said Pakhi Das from the non-profit Plant-for-the-Planet.

Who Benefits

Brazil estimates the fund could generate $4 billion annually for conservation, benefitting up to 74 forest-rich nations.

However, only countries with deforestation rates below 0.5% — and maintaining that level — will qualify for payments.

“It’s straightforward: if deforestation isn’t reduced, no payment,” said Mauricio Voivodic, executive director of WWF Brazil.

Experts say the potential earnings could double or triple current national and donor spending on forest conservation. Brazil, Indonesia, and the Democratic Republic of Congo could each earn hundreds of millions of dollars annually by halting deforestation.

Will It Work?

Resende said the initiative could begin even without the full $25 billion in startup capital.

“What we need from COP30 is a political signal that this is the way forward,” he noted.

Some diplomats remain cautious, citing uncertainties over monitoring methods and whether the fund can achieve a high enough credit rating to attract private investors.

Still, conservationists argue the plan is worth pursuing.

“If successful, this could protect forests forever,” said Voivodic. “It’s better to act now than wait for a perfect solution — there is no silver bullet.”