The Dutch government announced on Monday that it will contribute up to US$ 500 million over the next decade to the Tropical Forests Forever Fund (TFFF), an initiative led by Brazil aimed at financing the protection of threatened forests.
Launched last year at the United Nations climate summit COP30, the TFFF was presented as an innovative financing model, in which resources are managed through an endowment fund (endowment) and used to make annual disbursements to participating countries based on the extent of their preserved tropical forests.
- The fund aims to reach US$ 125 billion, with about US$ 100 billion coming from private sector investments.
- The fund’s net proceeds will be used to permanently reward countries that effectively act to conserve their forests.
- The indicative remuneration is around US$ 4 per hectare per year, with preservation monitored by satellite imagery.
- The fund intends to contribute to the protection of up to 900 million hectares of tropical forests, the Dutch government said.
- In addition to the Netherlands and Brazil, a coalition of countries including Indonesia, the United Kingdom, Norway, France and Germany has already pledged to contribute.
- The fund will be administered by the World Bank and is expected to begin operations in mid 2027.
