Brazil is making a bold bid to save the world’s rainforests, proposing a new fund that would pay 74 developing nations to halt deforestation. The “Tropical Forests Forever Facility,” unveiled by President Luiz Inácio Lula da Silva at the Belem climate summit, is built on a novel financial model.
Instead of relying on donations, the fund will be financed by interest-bearing debt. Wealthy nations and commercial investors would provide loans, creating a sustainable economic incentive for governments to protect their forests.
The goal is to make preservation more profitable than destruction. Currently, cattle ranchers, miners, and loggers profit from clearing forests, but Brazil argues the whole world reaps “richer rewards” from a preserved forest that absorbs carbon dioxide.
The plan has already attracted $5.5 billion in pledges, including a major $3 billion contribution from Norway. Germany is also expected to pledge its support.
A key provision of the fund allocates 20 percent of its resources to Indigenous communities, recognizing their crucial role as forest guardians. This proposal comes amid a challenging political climate, with the US, China, and India skipping the talks and the UN warning of “moral failure.”