Brazil Proposes Global Tropical Forest Finance Fund

Brazil is rallying international support to establish a Tropical Forest Finance Facility aimed at preserving tropical forests globally. The fund, supported by both governmental and private contributions, aims to raise substantial financial resources, with plans to be officially launched at COP30 in 2025.

Brazil is mobilizing global backing for a new fund designed to channel resources to nations with tropical forests, according to Finance Ministry officials at the G20 finance leaders' meeting in Rio de Janeiro. The proposed Tropical Forest Finance Facility will be funded by participating governments and private sectors. Proceeds from the fund's investments will support countries committed to forest conservation.

Finance Ministry official João Paulo de Resende disclosed that an initial $25 billion contribution from various countries is anticipated, potentially leveraging up to $100 billion in private bonds. Resende highlighted, "This is a substantial sum, significantly exceeding current efforts. If Brazil could eliminate deforestation, it would receive $4 per hectare of forest, yielding approximately $1.3 billion annually."

The fund will include mechanisms to penalize deforestation, according to Resende. The Brazilian government aims to officially launch the fund during the United Nations Climate Change Conference (COP30) in Belem in November 2025.

To date, the initiative has garnered support from the US, the UK, France, Germany, Norway, Singapore, Colombia, and the United Arab Emirates.