Known as the Forever Tropical Forests Fund, the fund will reward countries that manage to stop deforestation. With the goal of making standing forests worth more than felled ones, it could channel up to $4 billion a year to up to 74 countries.
Tropical forests are vital for climate stability
Under the fund, countries that conserve their forests will receive $4 per hectare per year, adjusted based on performance verified through satellite monitoring.
A total of 74 countries are eligible and together host more than one billion hectares of tropical and subtropical forests. Priority areas include the Amazon, the Atlantic Forest, the Congo Basin, the Mekong region and the island of Borneo in Southeast Asia.
A fisherman navigates a passage through a forest in northern Thailand.
Supporting local communities
During the UN General Assembly high-level week last September, Brazilian President Lula da Silva announced the inaugural investment in the fund: $1 billion.
talking to UN News COP30 Executive Director Ana Toni then confirmed that 20 per cent of each country’s payments would go directly to local communities, reinforcing the focus on Indigenous Peoples and others who protect forests in their communities and beyond.
“This demonstrates the determination of the Brazilian government not only to keep the forests standing but also to reward those who protect them, with special attention to indigenous peoples.”
Building an international coalition
The creation of the fund began at COP28 in Dubai in 2023 and culminated with its official launch at COP30.
So far, five tropical forest nations have joined: Colombia, Ghana, the Democratic Republic of the Congo, Indonesia and Malaysia.
Potential investor countries include Germany, the United Arab Emirates, France, Norway and the United Kingdom, contributing to a blended investment mechanism in which dividends are shared between investors and forestry nations.
Mobilizing billions for forests
Investing governments are expected to contribute $25 billion in the coming years, mobilizing more than $100 billion from private sources. Brazil estimates that the fund could generate around $4 billion a year, almost triple the current concessional financing available for forest protection.
However, global forestry financing remains insufficient.
According to the United Nations Environment Program (UNEP), Annual investment must increase from $84 billion in 2023 to $300 billion in 2030 and $498 billion in 2050.which leaves an annual deficit of 216 billion dollars.
Why is it important
By linking financial rewards with forest conservation, the Forever Tropical Forests Fund aims to transform global efforts to address climate change and biodiversity loss.
The initiative also signals a shift towards fair, inclusive and predictable funding, ensuring that support reaches those who protect forests with their hands, their hearts and their assets.
COP30 will run until November 21. The conference brings together world leaders, negotiators and stakeholders to accelerate action on climate change, focusing this year on tropical forests, finance and nature-based solutions.