Tropical Forests Forever Facility (TFFF) Initiative

• The TFFF is a blended-finance mechanism aimed at incentivising countries to prevent deforestation and degradation of tropical forests by providing results-based payments funded through investment returns rather than traditional aid.

Proposed in: First proposed by Brazil during COP28 (Dubai, 2023) and formally launched at COP30 (Belém, Brazil, 2025).

Origin:

• A Global South-led initiative spearheaded by Brazil in coordination with other tropical forest nations such as Colombia, Ghana, Indonesia, Malaysia, and the Democratic Republic of Congo, with support from partner countries like Germany, France, UAE, Norway, and the UK.

Aim:

• To create a permanent, self-sustaining global fund that monetises the ecological value of tropical forests—ensuring that “standing forests are worth more than felled ones”—while strengthening multilateral climate cooperation and equity in global finance.

Key Features:

1. Blended-finance model: Combines public (junior) and private (senior) capital to generate sustainable financial returns.
2. Scale and funding: Expected initial contributions of USD 25 billion from investors, leveraging USD 100 billion in private funds to generate USD 4 billion annually for forest conservation.
3. Results-based payments: Forest nations will receive predictable, performance-linked funding for long-term conservation outcomes.
4. Ecosystem valuation: Recognises tropical forests as vital for carbon storage, biodiversity, and hydrological cycles—treating them as global public goods.
5. Innovation in finance: Operates as a trust fund/endowment model, ensuring perpetual returns rather than one-time grants.
6. Equity and multilateralism: Rooted in Common but Differentiated Responsibilities (CBDR-RC), it seeks to empower developing forest nations while upholding climate justice.