Brazil Pioneers $1B Forest Fund to Protect Tropics Ahead of COP30

Brazil has positioned itself at the forefront of global forest conservation by making the first commitment to the Tropical Forests Forever Facility (TFFF). President Luis Inácio Lula da Silva confirmed the country’s $1 billion investment during the UN General Assembly in New York, signalling Brazil’s leadership role as it prepares to host COP30 later this year.

Capuchin monkey sitting on a moss-covered branch with colorful macaws flying above the Brazilian rainforest. AI generated picture. 

‘Brazil will lead by example and become the first country to commit to investment in the $1 billion fund’, said Lula.

The TFFF seeks to raise $125 billion from governments and private investors, creating a steady flow of financing to protect tropical forests. Instead of focusing on carbon emissions reductions, the fund introduces area-based incentives, offering around $4 per hectare of preserved forest each year. The mechanism is intended to reward nations that keep their forests intact while also recognising their critical economic value.

‘The TFFF will change the role of tropical forest countries in confronting climate change through real economic incentives’, Lula added.

While designed to complement existing frameworks like REDD+, the TFFF marks a shift from carbon-credit market models by prioritising long-term ecosystem protection. Advocates suggest this approach could provide a more predictable, durable form of finance for safeguarding vital rainforests and biodiversity.

First floated at COP28 in Dubai, the facility is expected to become operational at COP30 in Belém, deep in the Amazon. By launching the initiative in the region, Brazil underscores both the global significance of the Amazon rainforest and the urgency of channelling sustainable financial flows to tropical forest protection.