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$4 Billion Fund to Pay Countries for Preserving Tropical Forests
5 Nov
Summary
- Brazil to launch fund to pay countries $4 billion annually to protect rainforests
- Fund aims to monetize value of standing forests as global public good
- Deforestation remains a major threat, with 11 million hectares lost yearly
On November 5th, 2025, Brazil is poised to unveil an innovative $4 billion annual fund designed to pay countries for keeping their tropical forests intact. The Tropical Forest Forever Facility, as it is called, represents a bold attempt to monetize the inherent value of standing forests as a global public good.
The fund aims to provide financial incentives for up to 74 countries with tropical forests to preserve their natural resources. By offering payments of around $4 per hectare, or $1.60 per acre, of standing forest, the initiative seeks to make conservation a more lucrative option than deforestation.
Deforestation has long been a major threat, with the world losing an estimated 11 million hectares of forest ecosystems annually, according to the United Nations' Food and Agriculture Organization. Brazil, in particular, has struggled to curb the rapid clearing of its Amazon rainforest in recent decades.
The new fund, if fully financed, would nearly triple the current volume of international forest financing. However, critics caution that the fund's structure has some flaws, including the daunting task of raising the initial $25 billion from governments and philanthropies to kickstart the program.
Nonetheless, the Tropical Forest Forever Facility represents a significant step forward in the global effort to protect the world's vital tropical forests, which play a crucial role in regulating the climate, supporting biodiversity, and sustaining local communities.
