A new way to finance conservation
The Tropical Forest Forever Facility (TFFF) creates a new climate finance model: countries that conserve their tropical forests will be financially rewarded through a global investment fund. Instead of destruction, conservation becomes economically advantageous, creating social and economic development.
Unlike traditional funds, the TFFF will raise R$700 billion in the international market at low interest rates as a low-risk asset. These funds will be reinvested in projects with a higher rate of return, making a profit (spread). The proceeds will be donated to countries with tropical forests, in proportion to the area conserved, while the money borrowed will be returned to the investor at a profit. This will ensure sustainable development for local communities and economic viability for countries with forests to generate foreign exchange by conserving them, as well as financial return for those who lent the money. It is only fair to financially compensate for the environmental services provided by forests.
The model allows investors to recover their funds, at a market rate of return, while at the same time contributing to forest conservation and reducing carbon emissions.
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