COP30 Debuts Forest Fund, Absent from Final Declaration

In one of the few concrete outcomes from the COP30 summit in Belem, Brazil, the Tropical Forests Forever Facility (TFFF) emerged as one of the largest forest-conservation funding commitments ever announced at a UN climate conference. Launched at the leaders’ summit ahead of COP30, the TFFF secured US$6.7 billion in public and private investments. Despite this progress, the initiative was left out of the final COP30 declaration, which ultimately omitted both a deforestation roadmap and the financial architecture proposed by Brazil, even though the proposal had broad support.

Brazil presented the TFFF as a long-term investment mechanism designed to raise US$125 billion from public and private sources to reward countries for maintaining standing tropical forests. The model calls for an initial US$25 billion in “sponsor” capital—primarily from Global North governments—to attract an additional US$100 billion from private investors. The fund would invest in sustainable bonds issued by developing countries, generating returns to cover dividends, repay sponsors, and provide annual payments to forest nations. Brazil proposed paying US$4 per hectare of preserved forest each year, with 20% allocated to Indigenous peoples and local communities.

At COP30, the TFFF secured US$6.7 billion in sponsor capital, less than one-quarter of what is needed for a full launch. Brazilian officials nonetheless described the commitments as a milestone and shifted expectations toward raising US$10 billion by the end of Brazil’s COP presidency in 2026. Ambassador Maurício Carvalho Lyrio, Secretary of Climate, Energy, and Environment at Brazil’s Foreign Ministry, said reaching the US$10 billion threshold could leverage roughly US$40 billion in private capital, creating a US$50 billion operating fund. Environment Minister Marina Silva added that President Luiz Inácio Lula da Silva was prepared to personally reach out to heads of state to close the remaining financing gap.

Work on the TFFF unfolded alongside efforts to incorporate a deforestation roadmap into the formal COP30 agreement. Brazil intended the roadmap to outline steps for fulfilling the COP26 Glasgow pledge to halt and reverse deforestation. However, negotiations broke down after the roadmap became tied to language on transitioning away from fossil fuels. Some critics argue this link may have been intentional, given Brazil’s interest in expanding its oil exports.

The separation of the TFFF from the core UNFCCC process sparked debate. Brazil secured support from 52 countries and the EU—including 34 tropical forest nations—through a standalone launch declaration. But high-income countries were split on funding. The UK declined to commit public resources, citing budget constraints and pending fiscal decisions, though it encouraged private-sector participation. “An announcement of spending a large sum on rainforests was regarded as politically not very appropriate,” said Michael Jacob of ODI Global, who added that London still had questions about the fund’s technical design.

Several European countries nonetheless made major pledges. Norway committed US$3 billion, conditioned on improvements to fund governance and progress toward the US$10 billion target by 2026, with disbursement spread over a decade. France pledged US$577 million, tied to independent evaluations, transparency measures, and scientific assessments, with funding to be delivered by 2030. After internal deliberations, Germany pledged US$1.15 billion as a grant—an approach that does not require repayment but could limit future fiscal space for climate spending.

In one of the largest commitments ever made by a developing country, Indonesia pledged US$1 billion. China expressed political support but did not make a financial commitment. In a summit address, Vice Premier Ding Xuexiang urged developed countries to “take the lead in cutting emissions,” prompting speculation about China’s willingness to contribute. Brazilian officials later expressed optimism that Beijing would eventually participate.

Although the TFFF was excluded from the final COP30 declaration, another forest-related initiative advanced. Support for a global roadmap to end deforestation reached 92 backers through the COP30 Action Agenda, a voluntary platform outside formal negotiations. Observers noted the growing importance of such parallel initiatives as consensus within UNFCCC talks becomes harder to achieve.

In August, Mexico’s Environment Minister Alicia Bárcena signaled  the country’s interest in integrating the Biocultural Corridor of the Great Mayan Forest (CBGSM)—jointly managed by Mexico, Guatemala, and Belize—into the TFFF. COP30 President André Corrêa do Lago welcomed the potential inclusion of the CBGSM, which aims to conserve 5.7 million hectares of forest and protect roughly 7,000 species, including 200 at-risk and 250 endemic species.

For tropical forest nations, the urgency is clear. “There is no path to 1.5°C that does not involve ending deforestation this decade,” said Dr. Fernando Barrio of Queen Mary University of London.