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Brazil is the biggest investor in Tropical Forest Forever Facility

Brazil has announced that it would be the first nation to commit in the Tropical Forests Forever Facility (TFFF) a novel multilateral fund that would help in conservation of endangered tropical forests. The project will be officially unveiled at a United Nations event in New York and the project will take center stage during COP30 that will be hosted by Brazil in Belem next November.

About the TFFF

  • Introduced as a 125 billion fund around the world.
  • Incorporates government and private-sector funding.
  • Works as an endowment, making annual payments, depending on the amount of tropical forest left standing.
  • Also ties financial rewards to conservation results.

Brazil's Role

  • Brazil will invest heavily in the first place creating a precedent.
  • Brazil will receive the biggest payouts since it is the home to the greatest tropical forest in the world Amazon.
  • Brazil wants to win over others with the first contribution to make them invest.

International Support

  • China has already made a pledge as an early mover, which is an indication of change in climate financing outside of the usual Western donors.

  • Other possible competitors: UK, France, Germany, Norway, Singapore, and the UAE.

  • First objective: raise 25 billion dollars in governments and philanthropies to lure another 100 billion dollars of private funds.

Significance

  • TFFF produces a performance-based climate finance framework, which compensates forest conservation.
  • Fills the gap between the developed and developing countries.
  • Empowers the tropical forest countries to play a bigger role in climate solution negotiations in the world.

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