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.
| Monitoring will be carried out via satellite with international standardization, with public and easy-to-access data. The focus is on ensuring transparency and efficiency in verifying forest cover. |
| Besides boosting conservation, the TFFF will stimulate demand for sustainable debt securities, such as green and blue bonds. The Fund does not compete with the carbon market, but acts in a complementary way. For countries or private investors, the model is more advantageous than traditional donations: the money invested is returned in 30 to 40 years, with attractive interest. |
Launch at COP 30 | The TFFF is due to be launched at COP 30 in November in Belém (PA). Fundraising is already underway with support from governments and international institutions. The Fund represents an innovative solution to protect tropical forests and create positive impacts on the environment, the economy and society. |
