Brazil has introduced the groundbreaking Tropical Forest Finance Facility (TFFF) to conserve tropical forests globally, aiming to mobilize $125 billion to protect one billion hectares of forests. The plan is to operationalize the fund by COP 30 in 2025, with significant attention received at COP 16 in Cali.
Key figures like Susana Muhamad and Marina Silva are expected to join, emphasizing the global effort required. The TFFF focuses on paying for conserved forest hectares, not just avoided carbon emissions, to incentivize sustained forest preservation.
By offering a fixed price per hectare for standing forests, TFFF simplifies monitoring through satellite imagery. The initiative seeks stable financing sources by creating an investment-grade fund and combining resources from institutional and sovereign investors.
The fund operates independently, attracting investments from wealthy nations and sovereign wealth funds globally. Minister Fernando Haddad named TFFF as the “forest bank,” highlighting its unique approach to forest conservation.