MercoPress. South Atlantic News Agency

TFFF reaches US$5.5 billion in funding

The TFFF is expected to have a transformative impact on national forest conservation policies

Brazilian authorities have confirmed that the Tropical Forest Forever Facility (TFFF), a financing model combining public and private investments to preserve these areas, had reached US$5.5 billion in funding following contributions from Norway (US$3 billion), Indonesia (US$1 billion), and France (US$500 million) in addition to the South American country's US$1 billion disbursement during the UN General Assembly in New York in September.

In practice, countries that succeed in recovering and maintaining their forests will be financially rewarded for their efforts. They will receive funds only after satellite imagery confirms that deforestation levels remain below predefined limits. Conversely, deductions will be applied for each hectare deforested or degraded.

The rationale behind the TFFF is that tropical forests in countries such as Brazil, Colombia, Peru, Indonesia, the Democratic Republic of Congo, and Ghana regulate the global climate, provide fresh water, and harbor biodiversity essential to life on Earth. They generate benefits beyond their locations, contributing to the well-being and very survival of humanity.

”The idea was announced by President Luiz Inácio Lula da Silva in 2023, during COP28 in Dubai, with the support of five countries with tropical forests - Colombia, Ghana, the Democratic Republic of Congo, Indonesia, and Malaysia. The fund will become operational this year, following its official launch on Thursday at the Climate Summit preceding the United Nations Climate Change Conference (COP30), which begins on Monday in Belém, it was explained.

The TFFF differs from traditional models, such as donation-based funds, because it pays for results rather than financing projects and rewards the preservation of standing forests. Furthermore, it envisions a leading role for indigenous peoples and traditional communities in protecting forests directly. The mechanism proposes allocating at least 20% of national payments to these populations.

The proposal hopes to raise US$25 billion from investing countries during COP30. This contribution is expected to attract private sector capital and raise a total of US$125 billion to be invested in the conservation of tropical forests.

According to the Brazilian Environment Ministry, the goal is to mobilize approximately US$4 billion per year to be distributed among countries with tropical forests. This amount represents three to four times the discretionary budgets of the Environment Ministries of the main forest-producing countries. Therefore, the TFFF is expected to have a transformative impact on national forest conservation policies. (Source: Agencia Brasil)