Brazil's ambitious new initiative to pay nations for preserving their tropical forests has taken centre stage at COP30, as the government unveiled final details of its ‘Tropical Forests Forever' (TFF) plan — a vast funding mechanism aimed at curbing deforestation while rewarding environmental protection.
First proposed last year, the plan seeks to flip the economics of deforestation by making forest conservation more profitable than clearing land for cattle, mining or logging. Officials hope the new fund will demonstrate that keeping forests standing yields global benefits by absorbing billions of tonnes of carbon dioxide.
Under the proposal, the fund will issue about $25 billion (€21.6 billion) in debt in its early years, leveraging that into a $125 billion (€108 billion) pool of capital to pay developing countries that successfully limit forest loss. More than 70 forest-rich nations, including Congo, Indonesia and Colombia, will qualify for payments if they keep deforestation below a fixed threshold. Countries that exceed those limits will see their payouts sharply reduced.
In a significant move, 20% of the funds will be directed to Indigenous peoples and local communities — groups long recognised as vital stewards of the world's forests.
"These initiatives mark a major and overdue recognition of the leadership of Indigenous, Afro-descendant and local communities in safeguarding the ecosystems that sustain us," said Wanjira Mathai, managing director for Africa and Global Partnerships at the World Resources Institute (WRI). "But commitments will only matter if they're followed by action."
European nations lead with early pledges
Norway announced a $3 billion (€2.6 billion) contribution — the largest single pledge to date — though it is conditional on Brazil securing an additional $9.8 billion (€8.5 billion) in other international commitments. France pledged $500 million (€432 million), while the Netherlands and Portugal offered smaller sums of $5 million (€4.3 million) and $1 million (€865,000) respectively to help launch the fund.
Germany's contribution is expected to be announced soon, and UK Prime Minister Keir Starmer expressed support but withheld a financial commitment.
Brazilian officials said they also expect private sector participation once the fund reaches around $10 billion (€8.6 billion) — a level they say would allow it to begin issuing green bonds.
Norwegian Climate Minister Andreas Bjelland Eriksen said the fund's potential risks were "manageable," noting broad support from nearly 50 countries. "From the Amazon to the Congo to Southeast Asia, the forests that sustain us all are under a global red alert," said Mirela Sandrini, interim executive director of WRI Brasil. "If enough countries join, this mechanism could change the economics of deforestation by making preservation pay."
Praise and pushback
Environmental groups largely welcomed the plan as a breakthrough for financing nature protection, though several warned that progress must be swift.
"Climate and biodiversity are at breaking point — we must seize every opportunity to channel finance into credible, nature-based solutions," said Zoe Quiroz Cullen of Fauna & Flora. "There are details to refine, but the biggest danger now is delay."
Others, however, accused the initiative of commodifying nature and deepening economic dependency in the Global South.
"While the TFFF recognises traditional peoples, it still fits within the failed model of financialising nature — one that puts profit before people," said Lise Masson of Friends of the Earth International. "Rather than paying off historical climate debts or securing land rights, it hands environmental control to banks and international institutions."
Eduardo Raguse of Amigas da Terra Brasil was even more critical: "Putting a price tag on forests is colonialism in a new suit," he said. "The TFFF gives control back to the same powers that caused deforestation, forcing the Global South to guarantee returns for the North."
As world leaders gather in Brazil, the TFFF represents both hope and controversy — a bold experiment in using global finance to protect what remains of the planet's tropical forests. Whether it can deliver justice as well as results may define its legacy.