Tropical Forest Forever Facility aims to raise 125 billion dollars to curb deforestation
Summary and headline written by AI from the source article. How we work
More than 65 countries have endorsed the Tropical Forest Forever Facility (TFFF), an initiative designed to protect biodiversity by making it financially profitable for nations to keep forests standing.
The fund aims to raise USD 125 billion to provide tropical forest countries with the capital needed for reforestation, agroforestry, and conservation. While many nations have signed on, only eight countries have pledged money so far, totaling USD 7.8 billion.
The facility operates by using a mix of government loans and private investment. Governments and philanthropic groups plan to provide USD 25 billion in long-term loans, while private investors would provide USD 100 billion by purchasing bonds. The fund will invest this total amount into fixed-income assets. If these investments earn more than the interest owed on the loans, the surplus will be paid to tropical forest countries.
Eligible nations could receive up to USD 4 per year for every hectare of standing forest measured by satellite, with at least 20% of those payments going to Indigenous peoples and local communities. The World Bank currently hosts the secretariat for the fund, which expects to become operational in 2027 with the first payments starting in 2028. However, several rules remain under negotiation, including how the fund will monitor and penalize forest degradation.
Some experts warn that the current plan only penalizes fire-based degradation, which accounts for only about a third of all forest loss. Additionally, some advocates express concern that the fund may still invest in companies involved in mining or other extractive industries, which could contradict its environmental goals.
