Brazil expects $10 billion for tropical forest fund — Climate Home News
In New York, United States, Brazil’s Environment Minister João Paulo Capobianco said that the Tropical Forest Forever Facility (TFFF) could reach its target of $10 billion in public seed capital by the end of 2026. Governments have already secured $7.3 billion, leaving a $2.7 billion gap to the target, Climate Home News reports.
According to Capobianco, raising more than $7 billion in less than a year after the official launch could encourage new participants to contribute. Brazil is holding talks with China, South Korea and Japan and hopes for new commitments during COP conferences on biodiversity and climate change in October and November.
How the fund will work
Brazil launched the TFFF at COP30 in the Amazon in November 2025, and Norway is a co-leading party in the initiative. The fund is designed as an alternative to traditional grant financing for forest protection. It is intended to raise $125 billion in public and private capital, invest the funds in bonds, and direct annual returns to countries that preserve their forests.
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Supporters of the project believe that every dollar of public funding will make it possible to attract four dollars of private capital. At the same time, critics say that $10 billion will barely cover the fund’s costs and will not enable substantial payments to countries with tropical forests. Experts expect that payments to developing countries are unlikely to begin before 2028, as time is needed to establish the financial structure, raise seed capital and make the first investments.
Contributions and Norway’s conditions
Brazil and Indonesia have each pledged $1 billion. In September, the United Kingdom pledged to provide a loan of £400 million, or about $540 million. Norway, currently the largest donor, announced last year its intention to provide $3 billion on condition that the fund raises $10 billion in capital by the end of 2026 and that the Norwegian contribution does not exceed 20% of the total amount. To fully unlock the Norwegian funds, the fund must raise $15 billion from governments.
In July, the TFFF board adopted a charter under which 20% of payments to tropical countries must go directly to Indigenous peoples and local communities. The board also formally incorporated the Tropical Forest Investment Fund into the fund’s structure — the TFFF’s investment arm, based in Luxembourg, which will trade bonds on financial markets.
