June 5, 2026 — Global — Tropical forests are disappearing at alarming rates, releasing billions of tons of carbon dioxide, destroying habitats, and disrupting the livelihoods of nearly one billion people who depend on them. Despite their critical role in regulating rainfall, safeguarding water, preventing floods, and hosting biodiversity, forests remain severely underfunded in global economic models.
Currently, less than 2% of mitigation-related development finance reaches forests, even though they act as irreplaceable carbon sinks. The annual shortfall in forest financing is estimated at $216 billion, compared to the trillions invested in clean energy infrastructure.
The REDD+ framework, enshrined in the Paris Agreement, offers a proven mechanism to channel climate finance into forest conservation. Since 2008, the UN-REDD Programme has supported 66 countries, deploying over $500 million in REDD+ finance and enabling results-based payments through the Green Climate Fund and the LEAF Coalition. The recently launched Tropical Forests Forever Facility (TFFF) aims to mobilize $4 billion annually for countries protecting tropical forests.
Indigenous Peoples and local communities, who steward 36% of the world’s intact forests, are recognized as the most effective guardians. Direct grants and community-based REDD+ initiatives have shown high returns in carbon avoidance, income generation, and biodiversity protection. Ensuring finance reaches these groups is essential for equitable and effective conservation.
Examples from Costa Rica, Ecuador, Brazil, and Indonesia demonstrate how REDD+ payments strengthen local economies, empower communities, and promote sustainable supply chains. With 96% of national climate plans (NDCs) referencing forests, and carbon markets gaining traction, opportunities to scale forest finance are expanding.
Forests are not just ecosystems — they are economic infrastructure. Treating them as such means massively scaling up investments from both public and private sources. Protecting forests ensures climate resilience, food security, and sustainable development for generations to come.
