With a guaranteed $5.5 billion in investments so far in the Tropical Forest Forever Facility (TFFF), an initiative by Brazil and 11 partners to mobilize financial incentives for countries with tropical forests, Brazilian diplomats and Finance Ministry officials are seeking resources from other countries in the coming months, including China, India, Japan, Canada, Australia, and Scandinavian countries. The TFFF has raised just over 20% of the Brazilian government’s announced goal of $25 billion in public investments, showing enthusiasm among those involved in fundraising efforts, but with a long way to go.
Conversations with China began approximately two weeks ago, with the country being a priority for the Brazilian task force led by Maurício Lyrio, Brazil’s ambassador and chief negotiator at COP30. Trips have been made to Berlin, London, and Washington to engage with potential state investors. An official source mentioned ‘The UK and Germany will join, it’s just a matter of time.’
The UK delegation faced constraints in announcing a concrete investment at the Belém Summit due to domestic issues, primarily related to budget discussions that are expected to cut social spending. On the other hand, Germany, whose Chancellor Friedrich Merz confirmed a ‘significant’ investment, still needs to overcome obstacles within its Development and Finance ministries.
The TFFF discussions started with a group of 12 countries around two years ago, involving key players such as Brazil, Norway, Germany, and the UK. Despite some delay in the announcements from Germany and the UK, it was deemed ‘highly positive’ by Brazilian sources when both countries expressed their intention to participate in the fund. Other countries, like Indonesia with a $1 billion commitment, found the processes simpler.
In a surprising turn of events, Portugal, which had not previously engaged with the TFFF, announced a $1 million investment towards operational expenses, while France unexpectedly pledged $500 million. The initiative of India approaching the Brazilian government after learning about China’s discussions to join the TFFF added more weight to the involvement of major Brics countries, potentially influencing other Global South nations.
Simultaneously, meetings are being held with banks like Bank of America, Barclays, HSBC, and Citibank to discuss the involvement of the private sector. The TFFF aims to attract institutional investors such as pension funds, insurers, and other long-term, low-risk investment funds. The interest rate on the bonds to be issued in the markets is projected to be close to US Treasury bonds, around 1%.
Furthermore, the fund hopes to secure investments from billionaires and philanthropic foundations. During the Belém Summit, Australian billionaire Andrew Forrest, founder of the Minderoo Foundation, decided to invest $10 million in the TFFF. The goal is for countries to represent 20% of the fund’s investment, with the private sector contributing the remaining 80%. Once the $25 billion target is reached, according to an official source, ‘the support of countries will no longer be needed. It will be the private sector’s turn.’
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