BRICS leaders endorse Tropical Forests Forever Fund as new model for climate finance

Addis Ababa, July 10, 2025 (FMC) — At the 17th BRICS Summit held in Rio de Janeiro, the heads of state and government officially endorsed the Tropical Forests Forever Fund, a Brazilian initiative designed to deliver large-scale, predictable, and performance-based payments to countries conserving tropical forests.

The fund aims to expand global forest cover while securing long-term environmental and climate stability, TB BRICS reported, citing the official website of the 2025 Brazil BRICS Presidency.

The Tropical Forests Forever Fund is set for official launch at COP30, scheduled for November 2025 in Belem, Brazil, under the country’s presidency.

The BRICS Leaders’ Framework Declaration on Climate Finance, also released during the summit, highlighted the Tropical Forests Forever Fund as a promising blended finance instrument capable of generating predictable, long-term financial flows for forest protection.

Speaking at the summit, Brazil’s Minister of the Environment and Climate Change, Marina Silva, emphasised that the Global South is constructing a strategic mechanism that leverages public resources to attract private investment at a ratio of 1 to 4.

According to the source, unlike traditional mechanisms, the Tropical Forests Forever Fund functions as a revenue-generating investment fund rather than relying on donations. It pays for measurable results, rewards preserved forests instead of avoided deforestation, and integrates indigenous and traditional communities into decision-making processes. At least 20 per cent of national payments will be allocated to these groups, in recognition of their essential role in forest stewardship.

Participating countries will receive payments proportionate to the area of preserved tropical and subtropical moist forest, with satellite-based verification ensuring deforestation remains below agreed thresholds. Penalties will be applied for degraded or cleared land.