The mechanism has already reached half of the resources initially foreseen by the Ministry of Finance, that is, 50% of US$ 10 billion coming from countries, in this first moment
The Minister of Finance, Fernando Haddad, confirmed this Thursday, 6th, France’s contribution of 500 million euros to the Tropical Forests forever Fund (TFFF). He also said that the government has already spoken to “half a dozen” countries and the announcements, in the minister’s analysis, are auspicious.
The mechanism has already reached half of the resources initially foreseen by the Ministry of Finance, that is, 50% of US$ 10 billion coming from countries, in this first moment. The sovereign contribution target is US$25 billion, but the government is not setting a deadline for reaching this amount. It is the resources of countries that will serve as leverage for the entry of private money.
Leverage should be $4 private for every public dollar. In other words, US$10 billion boosts US$40 billion. The US$25 billion in sovereign resources leverage US$100 billion from private investors.
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The idea is to have a significant number of resources to encourage other countries to enter and continue the fundraising process throughout the Brazilian presidency of the Conference, which continues for 12 months after the event. The fundraising is led by Brazil.
Haddad reinforced that the Ministry of Finance never declared that there would be US$25 billion in the TFFF during COP30. A lunch was promoted this Thursday by President Luiz Inácio Lula da Silva, with world leaders and authorities on the topic. Haddad reported that the Brazilian president would call heads of state to mobilize resources.
Brazil has already announced that it will be the first to invest 1 billion dollars in this fund. The head of the Treasury declared that, if each G20 country contributed the volume that Brazil is contributing, the TFFF would already have almost all of its target achieved.
