The move comes ahead of COP30, the UN climate talks where countries will present updated plans to cut planet-warming emissions, alongside measures to protect forests and boost funding for renewable energy.
Known as the Tropical Forests Forever Facility, the fund will reward countries that succeed in halting deforestation. Aiming to make forests worth more standing than cleared, it could channel up to $4 billion a year to as many as 74 nations.
Tropical forests vital to climate stability
“Tropical forests breathe life into our planet. Yet they remain under relentless assault – treated as short-term profit, not long-term value,” said UN Secretary-General António Guterres, underscoring the urgency of the launch, which he saw as “a statement of solidarity and hope.”
Under the fund, countries conserving their forests will receive $4 per hectare per year, adjusted according to verified performance using satellite monitoring.
A total of 74 countries is eligible, collectively hosting over one billion hectares of tropical and subtropical forests. Priority areas include the Amazon, the Atlantic Forest, the Congo Basin, the Mekong region, and the island of Borneo in Southeast Asia.
“The Tropical Forest Forever Facility is a bold mechanism to make standing forests more valuable than cleared land – aligning conservation with opportunity, and solidarity with shared prosperity,” said Mr. Guterres, adding that “tropical forests are vital to climate stability.”
“Together, we can ensure tropical forests stand forever – as living pillars of climate stability, biodiversity, resilience, and peace,” he underlined.
A fisher navigates a passage through a forest in northern Thailand.
Supporting local communities
During the UN General Assembly’s high-level week this past September, Brazil’s President Lula da Silva announced the inaugural investment in the fund – $1 billion.
Speaking to UN News then, COP30 Executive Director Ana Toni confirmed that 20 per cent of each country’s payments would go directly to local communities, reinforcing the focus on Indigenous Peoples and others protecting forests in their communities and beyond.
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“This demonstrates the Brazilian Government’s determination not only to keep forests standing but also to reward those who are protecting them, with special attention to Indigenous Peoples.”
Building an international coalition
The fund’s creation began at COP28 in Dubai in 2023 and culminated in its official launch at COP30.
So far, five tropical forest nations have joined: Colombia, Ghana, the Democratic Republic of Congo, Indonesia, and Malaysia.
Potential investor countries include Germany, the United Arab Emirates, France, Norway, and the United Kingdom, contributing to a blended investment mechanism where dividends are shared between investors and forest nations.
Mobilising billions for forests
Investor governments are expected to contribute $25 billion over the coming years, leveraging more than $100 billion from private sources. Brazil estimates the fund could generate around $4 billion annually, nearly triple the current concessional financing available for forest protection.
Yet global forest finance remains insufficient.
According to the United Nations Environment Programme (UNEP), annual investment must rise from $84 billion in 2023 to $300 billion by 2030 and $498 billion by 2050, leaving a yearly shortfall of $216 billion.
Why it matters
By linking financial rewards to forest conservation, the Tropical Forests Forever Facility aims to transform global efforts to tackle climate change and biodiversity loss.
The initiative also signals a shift towards fair, inclusive, and predictable finance, ensuring that support reaches those protecting forests with their hands, hearts, and heritage.
COP30 will run until 21 November. The conference brings together world leaders, negotiators, and stakeholders to accelerate action on climate change, with a focus this year on tropical forests, finance, and nature-based solutions.