Germany Disappoints Brazil and Unlikely to Announce Funding for Forest Fund at Belem Summit

One of the most important bilateral meetings on Friday, the second day of the Belem Summit, is between Brazilian President Luiz Inácio Lula da Silva and German Chancellor Friedrich Merz. The Brazilian government expects Germany to follow Norway’s lead and make a substantial investment in the Tropical Forest Forever Facility (TFFF), an initiative by Brazil and 11 partners to mobilize financial incentives for countries with tropical forests. However, European sources suggest that this expectation may be disappointed.
The situation could change during the meeting between the two heads of state, but European sources say the chances are low. Merz arrived in Belem with the intention of announcing Germany’s commitment to join the TFFF and provide financial resources to the fund in the future. However, on this Friday in Belem, no specific amount was announced, unlike Norway’s $3 billion commitment.
Merz told European officials that there would be a political commitment to investment, which is seen as a guarantee of future financial support. However, Brazil was hoping for a more substantial figure to strengthen the TFFF.
Behind-the-scenes criticisms circulate among European officials regarding what one EU source describes as a delay on the part of the Lula government in informing potential partners about the TFFF details. The decision for the World Bank to act as the fund’s trustee was made less than a month ago and was a key element in convincing potential partners like European countries.
The EU still needs to study the details as it is a new mechanism. Within the bloc, Germany is currently perceived as the most likely investor in the TFFF. The question remains about the approved amount by the Germans, with the Ministry of Development in Berlin being the main obstacle, according to another source. The Foreign Affairs and Environment Ministries are fully convinced of the importance of supporting Brazil and global forest preservation.