BRASILIA (Reuters)-Brazil will announce on Tuesday an investment of $ 1 billion in the fund tropical forests forever (TFFF), a multilateral financing mechanism proposed by the country to support the conservation of threatened forests worldwide, according to two people with knowledge of the plans informed Reuters.
The investment will be announced by President Luiz Inacio Lula da Silva on Tuesday, in a United Nations event in New York, making Brazil the first country to contribute to the Forest Fund.
The measure aims to obtain more contributions from both rich and developing economies, which have disagreements to the financing of global climate policy.
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The intention of the Brazilian government, according to sources, is to show that Brazil has confidence in the results of the idea it is presenting and will “practice what it is preaching”. The country, besides being an investor, is among the 72 that can receive funds from the fund.
The Brazilian government negotiates contributions already with several countries, both developed and emerging. In July, during a BRICS meeting in Rio de Janeiro, China’s Finance Minister Lan Foan told Finance Minister Fernando Haddad that his country would make one of the initial contributions in the background, as Reuters showed.
Others emerging, such as the United Arab Emirates, have also shown interest, while Germany, Norway and the United Kingdom, who participate in the TFFF formulation, also talk about making contributions. According to the sources, Brazilian government heard that it would facilitate the attraction of resources from other partners if Brazil itself made their own investment.
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Policy formulators plan the TFFF as a $ 125 billion fund that combines contributions from sovereign funds and the private sector, managed as a endowment fund that pays for annual stipipe countries based on the amount of tropical forests that remain standing.
But to reach this ambitious goal, Brazil needs governments and large philanthropic institutions to contribute to the first $ 25 billion, which could attract another $ 100 billion of private investors, according to preliminary estimates.
