RIO DE JANEIRO: Brazil is gathering support from other countries for the creation of a fund that will send resources to nations with tropical forests in order to preserve them, Finance Ministry officials said at the sidelines of the G20 meeting of finance leaders in Rio de Janeiro.
The so-called Tropical Forest Finance Facility will be financed by the governments that join the initiative and will also rely on private funds. Income from investments by the fund will be passed on to countries committed to forest preservation.
Finance Ministry official João Paulo de Resende said an initial contribution of $25 billion by the countries is expected, which would allow the fund to leverage $100 billion in private bonds.
“It’s a significant amount, much greater than what exists today. We estimate that if Brazil managed to eliminate deforestation, it would receive $4 per forest hectare, which would total around $1.3 billion a year,“ Resende said.
The fund would have rules penalizing deforestation, he noted.
The Brazilian government expects the fund to be officially launched at the United Nations Climate Change Conference (COP30) in the Brazilian city of Belem in November 2025.
So far, Resende said, the initiative has received signs of support from the US, the UK, France, Germany, Norway, Singapore, Colombia and the United Arab Emirates.
