In a bold move to combat global warming, Brazil’s President Luiz Inácio Lula da Silva is championing a new financial mechanism to halt the destruction of tropical rainforests. At a climate summit in the Amazonian city of Belem, Lula proposed the “Tropical Forests Forever Facility” to world leaders.
The ambitious plan aims to revolutionize conservation by making it more lucrative for governments to keep their trees standing rather than cut them down. The fund would pay 74 developing countries for successful preservation efforts, directly challenging the economic drivers of deforestation.
Financing for the facility would shift away from traditional donations. Instead, it would rely on interest-bearing debt, with loans sourced from wealthier nations and commercial investors. This model is designed to create a sustainable and scalable flow of capital dedicated to protecting the planet’s “lungs.”
The urgency of the proposal is palpable in Belem, a city that is part of the crucial Amazon rainforest. Brazil hopes to convince the global community that the rewards of absorbing carbon dioxide and regulating the climate far outweigh the short-term profits of logging and ranching.
The proposal is already gaining traction, with $5.5 billion in pledges announced, including a major $3 billion contribution from Norway. In a nod to frontline stewards, the fund’s rules also mandate that 20 percent of the proceeds go directly to Indigenous peoples who have protected these lands for millennia.