Forest fire in Brazil. (Archive) New fund led by Brazil will put forest protection at the center of the global climate agenda Climate and Environment
Tropical forests, which play a critical role in protecting the planet from climate change, are disappearing at an alarming rate. To try to reverse the trend, Brazil launched a new initiative on Thursday in Belém, a city dubbed the gateway to the Amazon, ahead of the COP30 climate summit to be held there from November 10 to 21.
The initiative aims to place forest protection at the center of global climate action. The Eternal Rainforest Fund will reward countries that reduce deforestation. Thus, preserving forests will become more economically profitable than cutting them down. $4 billion will be allocated annually to 74 states.
Rainforests are the key to climate stability
“Rainforests breathe life into our planet. But they continue to be mercilessly destroyed – and seen as a source of quick gain rather than a long-term resource,” said UN Secretary-General António Guterres at a ceremony launching the initiative.
Under the fund, states will receive $4 per hectare of forest preserved per year. Payments will be adjusted depending on actual results confirmed by satellite monitoring.
Eligible countries include 74 countries, covering more than a billion hectares of tropical and subtropical forests. Priority areas are identified as the Amazon, the Atlantic Forest, the Congo Basin, the Mekong region and the island of Borneo in Southeast Asia.
“The Eternal Rainforest Fund is a bold concept to make conserved forests more valuable than cleared areas. It combines conservation with new opportunities,” Guterres said, adding that tropical forests are critical to climate stability.
Climate meetings in Belem
On Monday, November 10, the official UN Climate Conference (COP 30) kicks off in Belém, Brazil. And on November 6-7, Brazil is hosting its own climate summit, aimed at reminding the international community of the critical role of the Amazon rainforest and building momentum for the upcoming UN conference.
Speaking at the opening of the summit on Thursday, the UN chief said the climate crisis is getting worse.
“Record wildfires, fatal floods, extreme storms… destroying lives, economies and decades of progress. Last year, emissions reached another record level. And today, as we have seen, the World Meteorological Organization has confirmed that emissions continue to rise this year,” Guterres said.
He called for decisive action by countries to reduce harmful emissions and stressed that COP30 should usher in a “decade of delivery” on climate promises.
Support local communities
During UN General Assembly High-Level Week in September, Brazilian President Luiz Inácio Lula da Silva announced the first investment in the $1 billion fund.
COP30 Executive Director Ana Toni confirmed in an interview with UN News Service that 20 percent of the amount earmarked for each country will go directly to local communities, which will support indigenous peoples who actively protect the rainforests in their regions.
“This demonstrates the commitment of the Brazilian government not only to preserve forests, but also to reward those who protect them, with special attention to indigenous peoples,” said Tony.
Formation of an international coalition
Work on the creation of the fund began on RC-28 in Dubai in 2023. To date, five countries with tropical forests have joined the initiative: Colombia, Ghana, Democratic Republic of Congo, Indonesia and Malaysia.
Germany, the UAE, France, Norway and the UK are being considered among potential investor countries. They will participate in a mixed investment mechanism where dividends are shared between investors and forest states.
Mobilizing billions for forest protection
Investor governments are expected to contribute about $25 billion in the coming years, which will attract more than $100 billion in private investment. Brazil estimates that the fund could generate about $4 billion annually, almost triple the current level of concessional funding for forest protection.
However, international funding in this area remains insufficient. According to the United Nations Environment Program (UNEP), annual investment needs to increase from $84 billion in 2023 to $300 billion by 2030 and $498 billion by 2050.
Why it matters
Linking financial incentives to forest conservation, The Everlasting Rainforest Fund will help transform the approach to combating climate change and biodiversity loss.
The initiative also reflects a shift to a more equitable, inclusive and predictable financial model that ensures resources reach those who work to protect forests.
COP 30 runs until November 21. It will bring together world leaders, civil society and experts to accelerate climate action, with a focus on tropical forests, finance and nature-based solutions.