India joined the Tropical Forests Forever Facility (TFFF) as an Observer, supporting its innovative, market-based model to conserve tropical forests globally.

About Tropical Forests Forever Facility (TFFF)

• The TFFF is a blended-finance mechanism designed to reward countries for preventing deforestation through results-based payments funded by investment returns rather than traditional aid.
• It offers a new, budget-neutral model of nature financing that rewards countries yearly with $4 per hectare of forest protected.
• Proposed in: COP28 (Dubai, 2023)
• Launched at: COP30 (Belém, Brazil, 2025)
• Global South–led initiative: Spearheaded by Brazil with nations like Colombia, Ghana, Indonesia, Malaysia, and the DRC, supported by Germany, France, UAE, Norway, and the UK.
• Aim: To establish a permanent, self-sustaining global fund that monetises the ecological value of tropical forests, ensuring “standing forests are worth more than felled ones.”
  • It also promotes climate justice and equitable global finance.
• Funding: Over USD 5.5 billion Announced at COP 30.
• Endorsements: The TFFF Launch Declaration received endorsements from 53 countries, including 19 potential sovereign investors and 34 tropical forest nations representing over 90% of developing-world tropical forests.
  • Norway pledged USD 3 billion, while Brazil and Indonesia reaffirmed USD 1 billion each, and France, Portugal, the Netherlands, and Germany announced conditional or support commitments.

Key Features of TFFF

• Blended-finance model: Mixes public (junior) and private (senior) capital for sustainable returns.
• Results-based payments: Predictable, performance-linked funding for forest-rich nations.
• Ecosystem valuation: Treats forests as global public goods vital for carbon storage and biodiversity.
• Trust fund model: Ensures perpetual, not one-time, financial flows.
• Equity focus: Anchored in CBDR-RC, empowering developing forest nations in global climate governance.

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Conclusion

The TFFF marks a transformative step in global climate finance, aligning economic incentives with forest conservation to ensure lasting, equitable protection of tropical ecosystems.

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