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The Tropical Forests Forever Facility (TFFF) will be officially launched as part of efforts to secure $125 billion from governments and private investors. The fund aims to provide long-term payments to developing countries for each hectare of forest preserved, creating a financial incentive to reduce deforestation.
An initial $25 billion is requested from government sponsors to cover early investment risks, while an additional $100 billion is expected from private capital. Profits generated from these investments will be directed to countries with low deforestation rates, verified by satellite monitoring.
Approximately 74 forest-rich nations are expected to qualify for the initiative, but only those with annual deforestation rates below 0.5 percent will receive payments. The scheme could generate about $4 billion annually for conservation projects.
Brazil, Indonesia, and the Democratic Republic of Congo are among the top potential beneficiaries if they secure substantial reductions in forest loss.
Despite doubts about monitoring systems and investor interest, Brazil hopes the new mechanism will establish a sustainable financial model for forest protection and demonstrate global commitment to tackling deforestation.