China has decided not to participate in the Tropical Forest Forever Facility (TFFF), the global tropical forest conservation fund presented by Brazil as the main initiative of COP30, according to three sources with direct knowledge of the matter.
The fund, launched during the UN climate conference in Belém, has already accumulated US$5.5 billion in investment commitments, with confirmed contributions from Norway, France and Indonesia, in addition to a signal from Germany, which said it plans a “substantial contribution”.
Even so, without new investors, Brazil is expected to fall below the revised target defined before negotiations began. The initial proposal provided for US$25 billion in seed capital, to be leveraged up to US$125 billion. Finance Minister Fernando Haddad said last week that he believes the fund could reach US$10 billion by next year.
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According to two of the sources, Chinese officials maintain that developed countries should bear the main responsibility for financing global conservation efforts. Brazil and Indonesia, both emerging economies, were early supporters of the TFFF.
The Chinese delegation participating in COP30 did not respond to requests for comment. China’s Environment and Finance ministries were also not located outside business hours. The Brazilian Ministry of Finance did not comment.
Fund wants to pay countries for keeping forests standing
The TFFF was designed to financially incentivize the preservation of tropical forests, which store large volumes of carbon dioxide. The model foresees the investment of the resources contributed in high-return financial assets. Part of the proceeds would be used to remunerate investors with interest, and the rest would go towards annual payments of US$4 per hectare of protected forest in participating countries.
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According to one of the sources, Brazil does not expect new commitments during COP30, which runs until November 21 in Belém. Negotiations with India are at a standstill, while Japan and the United Kingdom have shown interest, but have not yet formalized membership.
The country is also awaiting promises from the Netherlands and Canada, expected only for next year. No multilateral development bank has confirmed contributions so far.
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On Tuesday, the European Investment Bank (EIB) reported that it is holding talks with the European Commission about possible support for the fund. “The basic principle — that it is necessary to reward countries that do not destroy forests — is completely legitimate,” said EIB vice-president Ambroise Fayolle, in an interview in Belém.
Separately, the European bank announced a contribution of €50 million (US$58 million) to a reforestation fund managed by management company Ardian.
According to one of the sources, another Western development bank, with a history of climate investments, refused to participate in the TFFF after being approached by the Brazilian government.
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Pressure for new contributions and first signs from the private sector
Thirteen German NGOs released an open letter to Chancellor Friedrich Merz on Tuesday, calling on Germany to announce a $2.5 billion investment in the fund. Norway’s commitment of US$3 billion, spread over ten years, depends on other countries also contributing relevant amounts, according to the terms of the agreement.
“We consider it politically crucial that the announced value is specified during the climate conference in Belém”, says the organizations’ letter. “This would help maintain the TFFF’s momentum, guarantee Germany influence in its governance through a board seat, prevent Norway’s resources from expiring, and mobilize additional contributions.”
Among private investors, there are initial signs of interest. The Minderoo Foundation, financed by Australian billionaire Andrew Forrest, announced a contribution of US$10 million.
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“The merit of this is that it brings together a significant amount of capital dedicated to preserving forests — and it actually works,” Forrest said in an interview. “We receive financial returns, and even better, we help save the world’s rainforests. This is not about carbon offsetting.”
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