Netherlands pledges up to $500 million to Brazil-led forest fund

The Dutch government has announced its intention to contribute up to $500 million over the next decade to the Tropical Forest Forever Facility (TFF). This initiative, led by Brazil, aims to protect threatened tropical biomes by providing financial rewards to countries that maintain their forests.

The TFF operates as an endowment fund, where returns from investments are used to pay eligible countries $4 per year for every hectare of forest preserved, verified via satellite imagery. The fund is managed by the World Bank and has a long-term goal of reaching $125 billion, with approximately $100 billion expected from private sector investments.

The coalition supporting the initiative includes over 50 participants, such as Indonesia, the United Kingdom, Norway, France, and Germany. The fund is expected to become operational by mid-2027. The official announcement of the Dutch investment is scheduled to take place at COP31 in Antalya, Turkey.