"Though tropical rainforests contain some of the world's richest biodiversity, regulate climate and hold vast stores of carbon dioxide, humans often see greater value in destroying them. The vast Amazon rainforest has typically suffered extreme exploitation, losing 3,000 football fields of forest daily during its 2022 deforestation peak to make way for cattle and crops like soya beans. Numerous international treaties and environmental laws aimed at protecting these forests have had limited success."
"Initiated by the Brazilian government, the TFFF aims to create a global forest facility, or fund, via national contributions totalling $25 billion (21.5b) that will, it is hoped, be quadrupled by private investors taking the kitty to $125 billion. The plan is to invest these funds in high-yielding bonds, with investors receiving an annual fixed interest rate return from the roughly $4 billion of expected annual profit."
"After interest is paid to investors, the rest will be distributed among developing countries that commit to preserving or restoring their rainforests. Paid on a per-hectare basis, these funds will nearly triple the current financing available for tropical forest protection. In some cases, the monies could be well above the entire national budgets for environment and forestry ministries. National commitments to the facility will be sought when the TFFF is launched at the November UN climate summit, or COP30."
Tropical rainforests host exceptional biodiversity, regulate climate and store vast amounts of carbon yet face intense destruction for cattle and crops. The Amazon lost the equivalent of 3,000 football fields daily at its 2022 deforestation peak. Numerous international treaties and environmental laws have achieved limited success in halting losses. The Tropical Forests Forever Facility (TFFF) aims to create a global fund seeded by $25 billion in national contributions and potentially quadrupled to $125 billion by private investors. Planned fund investments in high-yield bonds are expected to generate about $4 billion annual profit, with returns used to pay investors and distribute remaining funds to developing countries that commit to preserve or restore rainforests. Per-hectare payments would nearly triple current tropical forest protection financing and could exceed environment ministry budgets in some countries. National commitments will be sought at the November UN climate summit, COP30, in Belem, Brazil.
Read at www.dw.com
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