Current Context : Brazil has become the first country to invest in the Tropical Forests Forever Facility (TFFF), a permanent global fund created to protect tropical forests.

ABOUT TFFF

Origin

• Proposed by Brazil at COP28 (UAE, 2023).
• Designed as a long-term multilateral fund for forest conservation.

Goal

• Mobilise US $125 billion from public and private sources.
• Provide fixed payments per hectare of protected forest to tropical forest countries.

Financial Structure

• Sponsors (20%): High-income countries + philanthropies.
• Market Investors (80%): Sovereign wealth funds, institutional investors, endowments.
• Fund Management: To be managed by a Multilateral Development Bank such as the World Bank.

Mechanism: Raises money via debt instruments like bonds.