UK to invest £400 million in Tropical Forests Forever Facility

The UK Department for Energy Security and Net Zero (DESNZ) has announced its intention to invest £400 million (approximately 80 billion yen) into the Tropical Forests Forever Facility (TFFF). This investment will be provided in the form of a loan rather than a grant, marking a shift in climate finance where the government acts as an investor rather than a donor.

Under this model, forest-rich nations are not required to repay the funds to the UK. Instead, the TFFF is designed to generate investment returns through a results-based model. These returns will be used to repay investors and provide rewards to countries that successfully conserve their tropical forests.

The investment is subject to final due diligence, including the establishment of governance structures, operating systems, and the fulfillment of specific UK government conditions. The TFFF was established following COP30 to support the conservation of tropical forests for future generations.