Tropical forests are among the most valuable resources on the planet. UN Food and Agriculture estimates
The organization predicts that deforestation sacrifices 25 million acres of tropical forest each year. This has a double whammy in terms of climate change; It releases stored carbon from felled trees and reduces the area of ​​forests that capture carbon.

Despite efforts to prevent tree loss, such as carbon credits or grant programs that reward forest conservation, deforestation continues at a rapid pace. However, in the first 10 months since Lula da Silva was re-elected as Brazilian president, deforestation in the Brazilian Amazon decreased by 50 percent compared to the same period in the previous year. More importantly, the Tropical Forest Financing Facility (TFFF) offers to pay developing countries a fee for every acre of forest they keep.

TFFF will pay countries for services they provide free of charge, such as water management of tropical forests.
biodiversity conservation, soil conservation, nutrient cycling and carbon storage. UN works with Brazil
The program, including how it will be managed, is to be finalized by the end of this year. Introduction of Brazil’s program
It has already garnered significant support but hopes to capitalize on its role hosting the UN climate summit
We will implement this in 2025.

An investment fund of 125 billion dollars is envisaged in the program. There will be no donations from governments
rich nations was a moot point with many previous plans. Rich nations, big philanthropies and private
investors would lend long-term (20 years) money to the fund at a fixed rate of return. Grant creation idea
Protecting forests on this scale is a unique situation, but the financial mechanism behind it; receiving deposits and reinvesting.
it is common to use them for profit.

TFFF will create a diversified portfolio that is large enough to pay back investors and yields enough to pay back more.
About 70 developing countries are trying to protect tropical forests. The purpose of the fund is to make payments to low-income countries
The deforestation rate is $1.60 per acre per year for standing forests. Satellite images will monitor and verify compliance.
Forests can be aged or restored, but tree plantations cannot. Countries receiving these payments:
A penalty of $160 per acre was imposed for lost forest; That’s roughly what a soybean farm in the Amazon makes; one of the most profitable uses of deforested land. The impact of a reliable flow of funds for budget planning purposes will greatly motivate a country to abandon or even outlaw deforestation projects.

Developing countries have paid high rates for years to benefit from economic development funds. TFFF will give such countries something they long for: the kind of cheap money that only rich nations have access to.

Vision, scope and early support from both rich and developing countries, although there are challenges
encourages cautious optimism. This program coincides with the growing interest in nature-based solutions to solve problems.
climate change and other environmental challenges.