At the 17th BRICS Summit held from 6 to 7 July in Rio de Janeiro, BRICS leaders endorsed the Tropical Forests Forever Fund (TFFF), a Brazilian initiative aimed at providing large-scale, predictable, and performance-based payments to countries with tropical forests. The fund is designed to preserve and expand forest cover while serving as a blended finance mechanism capable of generating long-term financial flows for the conservation of standing forests. The BRICS Leaders’ Framework Declaration on Climate Finance emphasized the TFFF’s potential role in mobilizing significant private capital and called on developed nations to meet climate finance targets set by the Paris Agreement, including the goal of raising USD 300 billion annually by 2035, with a longer-term target of USD 1.3 trillion.
The TFFF seeks to leverage public funding to attract private investment at a 1:4 ratio and aims to be fully operational by COP30. It has already received international support, including from donor countries, the private sector, and multilateral institutions during the recent London Climate Action Week. President Lula da Silva highlighted the fund during the summit, framing it as a vehicle to compensate countries for the ecosystem services provided by their forests, and a critical part of the broader climate finance strategy.
With a goal of generating approximately USD 4 billion annually, the fund will allocate payments to countries based on the extent of preserved tropical and subtropical moist forests, using satellite verification to ensure deforestation remains below a set threshold. Deductions will be made for deforestation or degradation. Compared to current national budgets and voluntary carbon market contributions, the TFFF offers a potentially transformative impact on forest conservation funding.
Unlike traditional grant-based mechanisms, the TFFF functions as a revenue-generating investment vehicle, delivering results-based payments for preserved forests rather than for avoided deforestation. It prioritizes engagement with Indigenous Peoples and traditional communities, with at least 20 percent of national payments designated for their benefit, recognizing their crucial role in forest protection.
Tropical forests are vital for global climate stability, biodiversity, water systems, and human livelihoods. The TFFF offers a scalable, equitable solution to support countries in preserving these ecosystems, marking a significant step forward in global efforts to address climate change through targeted, performance-driven financial support.
