Brazil will contribute $1 billion to launch the Tropical Forests Forever Fund, a financing mechanism that pays countries to conserve their forests.
The Tropical Forests Forever Fund represents a shift in how the world finances forest conservation. First presented at the United Nations headquarters in New York in September 2025, the initiative entered implementation at COP30 in Belém, where Brazil urged other nations to match its ambition and help reshape global forest finance.
The fund will pay countries up to four dollars per hectare of preserved tropical forest each year. More than 70 developing nations with tropical forests qualify for funding. Brazil’s Minister of Environment and Climate Change, Marina Silva, stated that the fund marks a turning point away from relying solely on public funds for conservation.
The fund has now secured over US$5.5 billion in initial funding from governments and partners. Early contributors include Brazil, Norway, Indonesia, and France. The target remains to mobilize US$25 billion from public sources and philanthropies, leveraging an additional US$100 billion from private investors, a structure designed to create a US$125 billion endowment-style fund.
By using a blend of public and private capital, governments take on junior-capital positions that encourage greater private-sector participation. Once fully capitalized, the mechanism could generate US$4 billion annually for forest conservation, triple today’s combined global investments in tropical forest protection. Unlike donation-based approaches, this operates as an investment mechanism with returns distributed between investors and forest countries.
Countries joining the fund must submit annual reports proving forest conservation through satellite monitoring. Brazil already conducts such monitoring through its National Institute for Space Research and could serve as a model for other nations. Transfers may be reduced if deforestation exceeds 0.5% annually.
Five tropical forest countries have joined Brazil’s initiative so far: Colombia, Ghana, the Democratic Republic of the Congo, Indonesia, and Malaysia. Five potential investor nations are participating in the development of the mechanism: Germany, the United Arab Emirates, France, Norway, and the United Kingdom.
The Tropical Forests Forever Fund includes specific protections for Indigenous peoples and traditional communities. Countries must allocate 20% of the received funds specifically to these groups. They must also have transparent financial management systems to qualify. Indigenous territories in Brazil experience deforestation rates that are 2.5 times lower than those in other areas, according to government data.
Beneficiary countries decide how to use the funds. Brazil projects that the money could strengthen its Green Grant Program, National Policy for Payment for Environmental Services, and bioeconomy initiatives. The fund prohibits investments in fossil fuel projects. Priority is given to stocks and bonds from emerging economy governments and companies, as well as products classified as green.
Rafael Dubeux, Deputy Executive Secretary at Brazil’s Ministry of Finance, explained that the fund addresses the opportunity costs for landowners. Standing forests become economically valuable rather than just a conservation slogan. The mechanism gives material value to ecosystem services that tropical forests provide globally.
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Tropical forests contain more than 80% of the world’s terrestrial biodiversity. They regulate the climate by storing carbon and maintaining water cycles. The Amazon’s flying rivers, for example, distribute moisture across South America. These forests span 1.1 billion hectares across 73 developing countries.
Brazil has led the development of the Tropical Forests Forever Fund since COP28 in Dubai in 2023. Ambassador Mauricio Lyrio from Brazil’s Ministry of Foreign Affairs said consolidating the fund at COP30 strengthens multilateralism. The initiative originated from the Global South rather than being imposed by developed nations.
Sonia Guajajara, Brazil’s Minister of Indigenous Peoples, emphasized that Indigenous communities have always protected forests without dedicated resources. The fund will provide autonomy and structure for implementing projects directly in territories. A 2021 UN report confirms that lands managed by Indigenous and traditional peoples suffer less deforestation and emit less carbon.
China endorsed the proposal in September 2024, expressing interest in its potential impact. BRICS leaders and Amazon nations have signaled support. Brazil has engaged countries worldwide through its embassies to build momentum for the fund’s launch.
The fund complements other climate finance mechanisms rather than replacing them. While carbon credit markets compensate actors who capture greenhouse gases through activities like reforestation, the Tropical Forests Forever Fund pays sovereign states for maintaining intact forests. Both approaches can work together to protect tropical ecosystems.
If projections prove accurate, this will become one of the largest multilateral funds ever created, second only to the World Bank. The fund operates as a trust, similar to endowments that support major universities. Returns from investments compensate both investors and forest countries that meet conservation targets.
The fund addresses a gap in long-term, predictable financing for forest conservation. Current concessional resources remain extremely limited. Countries will receive additional payments to their existing conservation budgets, providing capacity for expanded public policies and programs.
The official launch at COP30 in Belém carried symbolic weight. The conference took place in the heart of the Amazon, highlighting the urgent need to protect tropical forests. The location demonstrates Brazil’s commitment to leading conservation efforts from within the world’s most biodiverse region.
