COP30: Germany commits €1bn to Brazil’s tropical forest conservation fund
Germany has announced it will commit €1bn to the Tropical Forest Forever Facility (TFFF). The commitment, spread over a decade and subject to parliamentary approval, adds to the $5bn of seed commitment TFFF has attracted thus far.
The facility is aimed at establishing a $125bn investment fund, returns from which will be used to finance tropical forest conservation.
“Without what tropical forests provide for us all, humanity would be much poorer. That's why I'm so grateful for President Lula's magnificent initiative for the global protection of tropical forests. I'm convinced that this is money very well spent. We're using the market to protect the forest”, said Germany’s environment minister Carsten Schneider.
To generate returns, the fund is seeking to combine $25bn of junior tranche sovereign capital with $100bn of senior tranche private capital to be invested in emerging market debt securities.
“Rainforests are the green lungs of our world. And the climate doesn't stop at borders. That's why, together with international partners, we are supporting the development of this innovative financing initiative with strong private sector participation”, said Alabali Radovan, Germany's minister for Economic Cooperation and Development.
Speaking alongside President Lula at a press conference at the end of COP30’s 10th day of negotiations, Brazil’s environment minister Marina Silva highlighted Germany’s announcement.
“This contribution is the result of ongoing efforts and demonstrates that this global financing instrument is very well designed, very well structured, and is beginning to deliver results”, she commented.
Germany’s €1bn participation in TFFF matches commitments made by Brazil and Indonesia. Norway, the TFFF’s largest backer, has committed €3bn.
