World leaders in Brazil are considering a $5.5 billion lifeline for the planet’s tropical rainforests. The “Tropical Forests Forever Facility,” proposed by Brazilian President Luiz Inácio Lula da Silva, is a new fund designed to provide massive, sustained financing to halt deforestation.
The proposal, a major topic at the Belem summit, aims to pay 74 developing countries to keep their trees standing. This is a crucial climate strategy, as these forests absorb vast quantities of carbon dioxide, the greenhouse gas heating the planet.
The fund has already received significant backing. Norwegian officials pledged $3 billion, the largest commitment of the day, bringing the total announced to $5.5 billion. Germany’s Chancellor Friedrich Merz is also expected to meet with Lula and announce a contribution.
A key innovation of the fund is its financing. Instead of relying on donations, it will be capitalized by interest-bearing loans from wealthy nations and commercial investors. This aims to make preservation a more lucrative choice for governments than destruction.
A significant 20 percent of the money is also earmarked for Indigenous peoples, recognizing their millennia-long role as the most effective guardians of these lands. This financial push comes as the UN chief warns of “moral failure” if the world’s climate goals are not met.