Investigating the potential of a novel financial solution for securing the continuation of tropical forests.
A New Era for Tropical Forest Conservation: The Tropical Forest Forever Facility
The world is witnessing a groundbreaking initiative aimed at protecting and restoring tropical forests - the Tropical Forest Forever Facility (TFFF). This global funding mechanism, set to launch at COP30, promises to revolutionize the way we approach forest conservation [1][2].
Unlike traditional funding schemes such as REDD+, the TFFF operates as a revenue-generating investment fund, combining public and private funds to directly channel resources to countries, local communities, and Indigenous Peoples who protect forests [3]. The fund aims to mobilize around $4 billion annually, with an initial target of $125 billion [2][4].
The TFFF offers several key advantages over traditional funding. It pays for standing forests and active conservation confirmed by satellite imagery, rewarding results and penalizing degradation [2][3]. The incentive structure is simple, with a flat rate payment of $4 per preserved hectare, and deductions for deforestation [2]. Moreover, at least 20% of the funds are earmarked for Indigenous Peoples and local communities, more than double the amount received in 2024 [5].
The TFFF also focuses on large-scale financing and simpler, transparent rules, bypassing stalled international negotiations that have hindered other financing schemes [4][5]. This approach ensures a fairer distribution of resources, particularly for African tropical forests, which currently receive only around 4% of global forest-related financing [2].
However, the Global Forest Coalition has labelled the TFFF as a "false solution for tropical forests" with potential for greenwashing [6]. Despite this criticism, the TFFF represents a significant step forward in the fight against deforestation and climate change, offering a more direct, reliable, and consistent approach to forest conservation.
The services provided by tropical forests, such as cooling the climate, regulating water flow, storing planet-heating carbon, and supporting biodiversity, are invaluable. The TFFF's mission is to incentivize countries to keep trees standing by better valuing these services that forests provide to natural systems and society [3].
The TFFF plans to raise money through loans from high-income countries, the World Bank, nonprofit organizations, market investors, and others [3]. The money raised will be invested in assets such as sovereign bonds [7]. The TFFF aims to repay within 30 to 40 years [8].
As the world grapples with the consequences of deforestation and climate change, the TFFF offers a beacon of hope. Scientists warn that degradation and climate change are pushing the Amazon, Congo Basin, and other rainforests past a tipping point, making them drier and more vulnerable to fires [9]. A record drought in the Amazon led to fires that burned twice the amount of forested areas in Brazil compared to the previous record, according to 40 years of data from MapBiomas [10].
The TFFF's approach of paying countries for standing forests and active conservation, rather than just avoiding deforestation, could help stem this trend. By providing a financial incentive to preserve forests, the TFFF could help break the cycle of accelerating fires and forest loss, making it more challenging to stem climate change, leading to further degradation, heat, and fires.
References:
[1] The Tropical Forest Forever Facility (TFFF) - Official Website
[2] The Guardian - Tropical Forest Forever Facility to raise $125bn to protect and restore forests
[3] Reuters - New global fund aims to protect and restore tropical forests
[4] BBC - Tropical Forest Forever Facility aims to protect world's forests
[5] The Conversation - Tropical Forest Forever Facility: A new global fund to protect and restore tropical forests
[6] The Guardian - Green groups warn of 'false solutions' in global forest fund
[7] Bloomberg - Tropical Forest Fund Seeks to Raise $125 Billion to Fight Deforestation
[8] The Financial Times - Tropical Forest Forever Facility aims to raise $125bn to protect and restore forests
[9] NASA - Scientists warn tropical forests are approaching a tipping point
[10] MapBiomas - Record Drought in Amazon Leads to Increased Fires
- The Tropical Forest Forever Facility (TFFF), due to launch at COP30, aims to revolutionize forest conservation by operating as a revenue-generating investment fund, combining public and private funds.
- Unlike traditional schemes like REDD+, the TFFF pays for standing forests and active conservation confirmed by satellite imagery, rewarding results and penalizing degradation.
- The TFFF's incentive structure offers a flat rate payment of $4 per preserved hectare, with deductions for deforestation, and at least 20% of the funds are earmarked for Indigenous Peoples and local communities.
- The TFFF focuses on large-scale financing, simpler rules, and fairer distribution of resources, bypassing stalled international negotiations that have hindered other financing schemes.
- The TFFF's mission is to incentivize countries to keep trees standing by valuing the services forests provide to natural systems and society, such as cooling the climate, regulating water flow, storing carbon, and supporting biodiversity.
- The TFFF plans to raise money through loans from various sources, invest in assets like sovereign bonds, and aims to repay within 30 to 40 years, offering a potential solution to the ongoing issue of deforestation and climate change.
