Brazil is set to unveil an ambitious $125 billion fund to protect tropical forests during the COP30 climate summit in November 2025. The initiative, named the Tropical Forests Forever Facility (TFFF), aims to reward nations for preserving their forests by paying a fee for every hectare maintained. The fund, developed with the World Bank’s assistance, is expected to attract contributions from countries like Germany, France, the UAE, and Singapore.
The summit, hosted in the Amazonian city of Belém, coincides with the 10th anniversary of the Paris Agreement. Brazil hopes to make COP30 a landmark event by addressing climate challenges and accelerating the implementation of existing agreements. Plans include discussions on a multilateral carbon market and a framework for sustainable investments.
Despite progress in reducing deforestation in the Brazilian Amazon under President Luiz Inácio Lula da Silva, global deforestation remains a concern, with 6.4 million hectares lost in 2023. Brazil expects $25 billion in loans from wealthy nations to kickstart the fund, aiming to attract an additional $100 billion from private investors.
The initiative comes amid geopolitical distractions, including the U.S. withdrawal from the Paris Agreement under President Donald Trump and Europe’s focus on defense spending due to the Ukraine conflict. Brazilian officials, including COP30 CEO Dr. Ana Toni, emphasize the urgency of addressing climate change as global warming surpasses critical thresholds.
Brazil also plans to innovate carbon markets by forming a coalition of countries adopting emissions ceilings based on per-capita income. The integration of carbon markets and a common taxonomy for sustainable investments are seen as potential legacies of COP30, aiming to combat greenwashing and enhance targeted investments.
The summit represents Brazil’s effort to demonstrate that multilateralism can still address climate change, even as global commitments face challenges.