UN Rolls Out $4 Bn Fund To Protect Tropical Forests
The Tropical Forests Forever Facility will reward countries for conserving forests, providing USD 4 per hectare annually, as world leaders prepare for COP30 climate talks
The United Nations has launched a global fund aimed at rewarding tropical forest nations for halting deforestation, in a move ahead of COP30 where countries will present updated plans to cut emissions and boost renewable energy.
Known as the Tropical Forests Forever Facility, the fund will provide payments of USD 4 per hectare per year to countries that successfully conserve forests, with performance verified through satellite monitoring. The initiative aims to make forests more valuable standing than cleared, potentially directing up to USD 4 billion annually to 74 eligible nations.
“Tropical forests breathe life into our planet. Yet they remain under relentless assault – treated as short-term profit, not long-term value,” said United Nations Secretary-General António Guterres. He described the initiative as “a statement of solidarity and hope,” adding that it seeks to align conservation with shared prosperity.
Eligible countries collectively hold over one billion hectares of tropical and subtropical forests, including key ecosystems such as the Amazon, the Congo Basin, the Mekong region and Borneo.
Raising Finance For Forests
During the UN General Assembly in September, Brazil’s President Lula da Silva announced the first investment of USD 1 billion into the fund. COP30 Executive Director Ana Toni said that 20 per cent of each country’s payments would go directly to local communities, ensuring benefits reach Indigenous Peoples and forest stewards.
The facility, first proposed at COP28 in Dubai, has so far drawn participation from Colombia, Ghana, the Democratic Republic of Congo, Indonesia and Malaysia. Potential investor nations include Germany, the United Arab Emirates, France, Norway and the United Kingdom.
Investor governments are expected to contribute USD 25 billion over the coming years, leveraging an estimated USD 100 billion from private sources. Brazil has projected that the mechanism could mobilise around USD 4 billion annually — nearly three times the current concessional finance available for forest protection.
According to the United Nations Environment Programme (UNEP), total forest finance must rise from USD 84 billion in 2023 to USD 300 billion by 2030 and USD 498 billion by 2050 to close a USD 216 billion yearly shortfall.
By linking verified conservation results to financial incentives, the Tropical Forests Forever Facility aims to reshape global efforts to curb climate change and biodiversity loss. The mechanism also seeks to establish a more equitable and predictable model of forest finance ahead of the COP30 negotiations in Belém, which will continue until 21 November.
