Brazil Launches $125 Billion Global Forest Fund to Combat Deforestation“Tropical Forests Forever” initiative secures $5.5 billion in pledges, including $3 billion from Norway, with performance-based payments to over 70 nations.
Brazil – November 7, 2025 — Brazil has unveiled the Tropical Forests Forever Facility, a landmark climate finance initiative designed to pay countries for preserving tropical forests, with the goal of curbing global warming and reversing deforestation trends. The fund was launched during the COP30 Leaders’ Summit, hosted on the edge of the Amazon rainforest.
The initiative has already secured $5.5 billion in initial pledges, including a $3 billion commitment from Norway, and aims to scale up to $125 billion through interest-bearing debt instruments, rather than traditional donations Yahoo News Australia BusinessMirror.
🌳 A New Model for Climate Finance
The fund introduces a pay-for-canopy model, offering financial incentives to over 70 eligible nations that maintain deforestation rates below agreed thresholds. Countries failing to meet targets will face payment reductions or penalties, creating a performance-based framework for forest conservation Evrim Ağacı.
Brazilian President Luiz Inácio Lula da Silva described the fund as a “turning point in global climate action,” emphasizing that protecting forests must become economically viable for developing nations.
“We are flipping the logic of deforestation. Forests must be worth more standing than cut,” Lula said at the summit.
🌍 Global Support and Indigenous Inclusion
The fund has drawn support from Indonesia, France, and other nations, with 20% of proceeds earmarked for Indigenous communities who serve as frontline guardians of forest ecosystems Evrim Ağacı. The initiative also aligns with broader UN climate goals and is backed by World Bank representatives and UN leadership.
Commissioned assessments will monitor compliance, and payments will be disbursed annually based on verified forest cover data.
🔍 Accountability and Transparency
To ensure credibility, the fund will use satellite monitoring, third-party audits, and community-based reporting. Participating countries must submit baseline deforestation data and agree to independent verification protocols.
Environmental groups have cautiously welcomed the initiative, calling for robust safeguards to prevent greenwashing and ensure equitable distribution of funds.
In short: Brazil’s new Tropical Forests Forever Facility aims to mobilize $125 billion to reward nations for preserving tropical forests. With $5.5 billion already pledged, including $3 billion from Norway, the fund introduces a performance-based model to combat deforestation and support climate resilience.
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