Brazil pledges US$1 billion to global tropical forest protection fund

Addis Ababa, September 24, 2025 (FMC) – Brazilian President Luiz Inacio Lula da Silva has pledged a landmark investment of US$1 billion into the newly created Tropical Forests Forever Facility (TFFF), an international fund designed to protect and preserve the world’s tropical forests.

The TFFF is designed to reward tropical forest nations for keeping their ecosystems intact by providing real economic incentives, TV BRICS reported citing Brazilian news agency Agencia Brasil..

The fund will operate as a blended finance mechanism, attracting contributions from governments and private investors, with annual dividends shared between investors and countries that successfully conserve their forests.

Lula underlined that without the leadership of those who live in and depend on tropical forests, there can be no sustainable solution to climate change. He also urged other nations to match Brazil’s ambition so the fund can be formally launched at the UN Climate Change Conference (COP30) in Belem in November 2025.

By COP30, the initiative aims to raise US$25 billion in junior capital from governments, which would then be leveraged to attract senior private capital of up to US$125 billion. According to environmental analysts, this could generate an average annual payment per hectare of preserved forest.