Brazil Commits US$1 Billion to Tropical Forests Forever Facility

Brazil Leads with a Landmark Commitment

At the UN General Assembly in September, Brazil made a landmark move. President Lula announced that his country will commit US$ 1 billion to the newly proposed Tropical Forests Forever Facility (TFFF), a new global mechanism designed to provide long-term, predictable funding for the protection of tropical forests and the communities that sustain them.

This is a bold signal of leadership, and it underscores just how urgent it is to close the yawning gap in forest finance.

Why Forest Finance Needs a Rethink

For too long, global climate and nature finance has under-invested in forests. Forests currently receive less than 4% of international climate finance flows even though they offer enormous returns in carbon sequestration, biodiversity, water regulation, and livelihoods.

TFFF is designed to mobilise sustainable, predictable, long-term support for tropical forest protection, not just piecemeal or short-term funding.

More is needed to be done to protect tropical forests around the world. Pictured here is a Cool Earth forest monitor in the dense Peruvian Amazon forest.

Beyond Carbon – A Broader Vision for Forest Protection

It’s heartening that the TFFF, unlike earlier models, is shifting the frame beyond only emissions reduction (REDD+), acknowledging that intact forests are much more than just carbon. This is a conceptual advance and the real measure of success will be how those resources are used on the ground.

Putting Indigenous Peoples at the Heart of Governance

A central concern is governance and voice. Indigenous peoples and local communities must have a driving seat at the decision-making table. In many existing forest finance instruments, their participation has been limited or conditional.

We urge that the TFFF’s governance structure embed their representation not as an afterthought, but as a core pillar, with decision rights, accountability mechanisms, and grievance redress built in from day one.

Some Indigenous leaders have already spoken to this:

“We are particularly interested in influencing the mechanisms that will govern the allocation of the 20% of resources designated for IP&LCs, to ensure that Indigenous Peoples and Local Communities play a meaningful role in the governance of the fund and that these financial flows reach those who protect the tropical forests directly, effectively, and in culturally appropriate ways.” – Global Alliance of Territorial Communities

Their stewardship is the foundation of forest protection; providing them with the leading role isn’t just fair, it’s necessary for legitimacy and impact.

Indigenous peoples have to be at the heart of decision making when it comes to rainforest protection. Poeple like Adelaida, pictured here, from an Ashaninka Indigenous community in the Peruvian Amazon.

Funding Is Only the First Step

The headline dollar figure, while important, is not the whole story. The challenge isn’t simply raising capital, it’s deploying it in a way that delivers real impacts for forests and communities. That means embracing models that are transparent, accountable, and anchored in local agency.

At Cool Earth, our tried-and-tested approach of direct and unconditional cash supports communities, giving them the flexibility to act on what they know works. We hope TFFF’s implementation will allow space and dialogue with trust-based models, rather than imposing overly rigid conditions.

Turning Ambition into Action

As Brazil steps forward, we hope more governments, philanthropies and investors will join. But ambition must be matched with strong safeguards, inclusive governance, local agency, measurable outcomes and accountability. If realised well, the TFFF could become more than just a grand headline, but a vehicle for transformative change.

Cool Earth stands ready to partner and advocate in support of that promise.