Tropical Forests Forever Facility:
Brazil will become the first country to announce an investment in the Tropical Forests Forever Facility.
- Tropical Forests Forever Facility is an innovative multilateral global permanent fund dedicated to supporting tropical forest conservation over the long-term.
- It is a global initiative led by the Government of Brazil.
- The idea for the fund was presented by the Brazilian government in 2023, at COP28 in the United Arab Emirates.
- The TFFF is a blended finance structure that seeks to mobilize US$125 billion in capital from public and private sector sources.
- The fund would be used to pay the tropical forest countries (TFC) a fixed amount of money per hectare of standing forest.
- It aims to raise capital from two main sources, sponsors and market investors through financial markets by issuing debt instruments such as bonds
- Sponsors would be the ‘high income’ countries as classified by the World Bank, along with philanthropies. (account for 20 per cent of the total corpus)
- Institutional investors, sovereign wealth funds, and endowments (account for 80 per cent of the total corpus) investing through debt instruments.
- Funds are managed via a Multilateral Development Bank (MDB), e.g., World Bank.
