In a move that could reshape global climate finance, Brazil unveiled the details of its much-anticipated Tropical Forests Forever Facility on Thursday, November 6, 2025, announcing an impressive $5.5 billion in pledges to pay countries for preserving their tropical forests. The initiative, which President Luiz Inácio Lula da Silva has championed as his flagship project, was launched at the edge of the Amazon during the United Nations annual climate summit in Belém. The timing and setting were no accident—Brazil aimed to spotlight the Amazon’s plight and the crucial role rainforests play in curbing global warming.
Unlike previous efforts that relied heavily on donations, the new fund is financed by interest-bearing debt. This innovative approach seeks to upend the traditional economic logic that often favors deforestation for short-term profit. As reported by the Associated Press, the facility is designed to make it more lucrative for governments to keep their forests standing rather than giving in to the economic temptations of cattle ranching, mining, and illegal logging. By absorbing vast amounts of planet-warming emissions, these forests provide a service that benefits the entire world.
Senior Brazilian officials took reporters through the inner workings of the fund, revealing ambitious plans to issue $25 billion in debt within the first few years. Through investments in fixed-rate assets, the hope is to leverage this into a massive $125 billion pot, which can then be used to pay developing countries for protecting their tropical rainforests. More than 70 heavily forested nations, including the Democratic Republic of Congo and Colombia, are eligible for payments—as long as they keep deforestation below a predetermined rate. If countries fail to protect their forests, their payouts will be reduced at a punitive rate for every hectare destroyed.
Norway stepped up with the largest pledge of the day, committing $3 billion. However, there’s a catch: Norway’s contribution is contingent on Brazil raising an additional $9.8 billion from other sources. This stipulation has put added pressure on Brazil to rally further international support. Other commitments include $1 billion from Indonesia, $500 million from France, $5 million from the Netherlands, and $1 million from Portugal to help with setup costs. Brazil itself has already contributed $1 billion to kick-start the fund, and officials expressed hope that Germany would announce its contribution on Friday.
While these pledges are significant, it remains to be seen how many other countries will join the effort. According to the Associated Press, UK Prime Minister Keir Starmer voiced support for the initiative but stopped short of making a financial commitment. Brazil is also banking on attracting private sector investment once the fund reaches $10 billion, a threshold considered sufficient to begin preparing bond issuances. This blend of public and private finance is central to the fund’s long-term sustainability and scale.
Brazilian Finance Minister Fernando Haddad didn’t hide his enthusiasm. “I was already very excited about this, but now even more so,” he said during a press conference, as reported by the Associated Press. His optimism was echoed by Norwegian Climate Minister Andreas Bjelland Eriksen, who described the risks associated with the fund as “manageable.” Eriksen also highlighted the urgency of the moment, stating, “There is perhaps an even bigger risk of not participating. Rainforests are disappearing before our eyes.”
The fund’s rules are clear: 20% of the money will go directly to Indigenous peoples. This provision recognizes the critical role that Indigenous communities play in safeguarding forests. Wanjira Mathai, managing director for Africa and Global Partnerships at the World Resources Institute, underscored this point, telling the Associated Press, “These initiatives demonstrate a massive and welcome shift in recognizing the central role that Indigenous peoples, Afro-descendants and local communities play in protecting the forests that sustain us.” Mathai also offered a note of caution: “These commitments could be transformative, but only if governments turn these words into action.”
At its core, the Tropical Forests Forever Facility is about flipping the script on deforestation. Historically, the economic incentives for cutting down forests have been powerful—land cleared for cattle or crops, timber sold for profit, and minerals extracted for global markets. But as Brazil’s new plan makes clear, there’s growing recognition that the world’s forests are worth far more alive than dead. By absorbing carbon dioxide, they act as a vital brake on climate change. Losing them, on the other hand, would accelerate global warming and threaten communities worldwide.
The facility’s structure is both novel and ambitious. By relying on interest-bearing debt rather than traditional aid, the fund aims to attract a broader range of investors, including those in the private sector. Once the fund amasses $10 billion, preparations for bond issuances will begin, opening the door to even greater financial leverage. This could prove to be a game-changer for climate finance, offering developing countries a reliable stream of income tied directly to their conservation efforts.
The list of eligible countries is extensive—over 70 nations with significant tropical forests stand to benefit if they meet the fund’s criteria. This includes not just Brazil, but also countries across Africa, Southeast Asia, and Latin America. The payments are performance-based: keep deforestation below the agreed threshold, and the money flows in. Fail to do so, and the financial penalties are steep. This approach is designed to ensure accountability and maximize impact.
Still, the path ahead is not without obstacles. The fine print of Norway’s pledge—requiring nearly $10 billion in additional commitments—means that Brazil must work hard to secure further backing. The response from other major economies remains uncertain, and the success of the plan will hinge on whether enough countries and private investors are willing to get on board. There’s also the challenge of ensuring that funds reach Indigenous and local communities, who have often been sidelined in past conservation efforts.
Yet, the mood in Belém was one of cautious optimism. With the world’s eyes on the Amazon and the climate crisis growing more urgent by the day, Brazil’s bold new plan has injected fresh hope into global efforts to protect the planet’s remaining rainforests. As Mathai of the World Resources Institute put it, the commitments made this week “could be transformative”—provided, of course, that they are followed by real action on the ground.
As the climate summit continues and more countries weigh their options, the fate of the Tropical Forests Forever Facility will be closely watched. For now, Brazil has set a new standard in climate finance, signaling that the world’s forests—and the people who protect them—are finally getting the attention, and investment, they deserve.
