'Almost utopian': how protecting the environment is boosting the economy in Brazil

"The goal sounds almost utopian: by 2050, Brazil aims to double income per capita, slash emissions of every greenhouse gas to attain 'net zero', and distribute wealth more fairly to achieve a 20% reduction in the Gini index - a metric that reflects income inequality. There has already been substantial progress. For example, deforestation has substantially decreased since the start of President Luiz Inácio Lula da Silva's latest term in 2023, and is now at its lowest rate for 11 years (see go.nature.com/442bqtp)."

"The first is the Tropical Forest Forever Facility (TFFF), a fund ran by participating nations, with support from the World Bank, to help low- and middle-income countries (LMICs) to preserve their tropical forests. The fund aims to reach US$125 billion in the coming years. An initial investment of $25 billion should come from nations and philanthropic organizations. Brazil has pledged to invest the first $1 billion, and other countries, including Norway, Indonesia, France and Germany, have announced substantial contributions."

"Another $100 billion is expected to come from capital markets, through the issuing of bonds that pay interest at the market rate. The fund is made up of investments rather than donations - the distinction matters. Experience shows that aid flows are volatile and are subject to political winds and fiscal constraints in donor countries. The TFFF breaks this cycle."

Brazil hosts the United Nations climate summit COP30 in Belém and pursues simultaneous economic growth and environmental protection. The country aims to double income per capita by 2050, reach net-zero greenhouse-gas emissions, and cut the Gini index by 20%. Deforestation has decreased since President Luiz Inácio Lula da Silva's 2023 term began, reaching the lowest rate in 11 years. The Tropical Forest Forever Facility (TFFF) aims to mobilize US$125 billion to help low- and middle-income countries preserve tropical forests, with an initial $25 billion from governments and philanthropies and $100 billion from capital markets through bonds. The fund issues investments rather than donations to reduce volatility in climate finance.

Read at Nature