Food & Climate
The Tropical Forests Forever Facility (TFFF) will not be able to pay $4 per hectare of forest in countries that have managed to protect trees from deforestation, due to the failure of the COP30 climate summit in Brazil to raise enough money to start immediately, under numerous pretexts, the strangest of which was that it is a mechanism that reinforces new colonial structures.
Brazil’s big climate finance bet, the Tropical Forests Forever Facility (TFFF), attracted $6.7 billion in sponsor capital at COP30, below the $25 billion initially required to roll out the initiative at full scale.
Global North countries have been hesitant to commit funds, often alleging domestic budget constraints. Yet, Brazilian officials insist the fund can begin operating on a smaller scale and a prolonged timeline.
TFFF, led by the Brazilian government and hosted by the World Bank, offers an innovative proposal to finance the conservation of tropical forests.
The idea is to raise $125 billion in public and private capital to invest in capital markets — primarily in long-term sustainable bonds issued by developing countries.
The plan initially requires $25 billion in junior “sponsor” capital, mostly from Global North governments. These funds would function as a safety net to attract an additional $100 billion from private investors. Profits generated by the fund would first pay dividends to investors, then reimburse sponsors, and the remaining balance would be distributed to eligible forest nations.
The goal is to pay tropical forest countries $4 per hectare (2.5 acres) of preserved forest each year, based on satellite monitoring — an amount that could be reduced based on degradation or deforestation. Of that total, 20% would go to Indigenous peoples and local communities, although how those funds would be distributed locally is still unclear, according to a report seen by Food & Climate.
52 countries support TFFF initiative at COP30
The TFFF initiative received strong political support in Belém. Fifty-two countries and the EU signed the TFFF Launch Declaration, of which 34 were tropical forest nations set to receive funds.
The initiative also secured some surprising donor contributions. Portugal’s Prime Minister, Luís Montenegro, announced an unexpected $1 million investment.
Indonesia, a developing country that will benefit from the fund, confirmed a $1 billion pledge to help kick-start the initiative. A few days later, Australian billionaire Andrew Forrest promised $10 million to the sponsor capital pool. Forrest is the founder of Fortescue Metals Group, one of the world’s largest iron-ore producers.
Britain’s Prince William attends the opening of the General Plenary of Leaders during the COP30.
The British government, which long supported TFFF, declined to announce a financial contribution during the summit, citing domestic economic pressures.
It reinforces new colonial structures
Germany announced its contribution at the tail end of COP30, after withholding a figure for weeks, even during a one-on-one meeting between Brazil’s President Lula and German Chancellor Friedrich Merz. The country finally announced a $1.15 billion grant to be disbursed over 10 years in $110 million yearly installments. The format of a “grant” differs from other countries’ contributions because the fund would not need to make interest payments to Germany. However, there’s a risk that it could constrain additional commitments to climate funding.
German federal parliament member Charlotte Neuhäuser, of Die Linke (Left Party), who was attending COP30, told Mongabay the government is facing budget cuts driven by a stagnating economy.
As a member of the opposition and the Left Party’s speaker for global justice, Neuhäuser supports the channeling of funds to the Global South, but through different mechanisms. “I do not support TFFF because it reinforces new colonial structures,” she said. “I would like to see Indigenous people and affected groups come to the table, express what is needed and the money going directly to them.”
The U.K. is in a similar bind. In a bilateral meeting in Belém, Prince William and Prime Minister Keir Starmer praised TFFF, a finalist in the Royal Earthshot Prize. The British government has long supported the initiative and even helped shape its design. But officials declined to announce a financial contribution during the summit, citing domestic economic pressures.
Michael Jacob, a visiting senior fellow at the British think tank ODI Global, who moderated a panel at the U.K. pavilion at COP30, said he believes the country would need to see changes in the fund’s setup. “The sad truth is that the U.K. government didn’t feel quite comfortable enough at a technical level to invest in the fund,” he said.
John Nordbo, head of climate advocacy for the nonprofit CARE Denmark, sees a broader trend in Europe scaling back development assistance, in part due to increased military spending.
“There are new NATO obligations in Ukraine, and we are seeing the consequences in climate finance”.
Brazil’s President Luiz Inácio Lula da Silva told Ambassador Mauricio Carvalho Lyrio, Brazil’s secretary for climate, energy and environment he is willing to get on the phone with global leaders to secure the rest of the funding we need,” he said.