Brazil is pushing for a paradigm shift in how the world values its forests. At a climate summit in Belem, President Luiz Inácio Lula da Silva has proposed a fund that would use interest-bearing debt to pay 74 developing countries to halt deforestation.
This “Tropical Forests Forever Facility” aims to make it more lucrative for governments to keep their trees standing than to cut them down. It’s a direct challenge to the economics of destruction, where cattle ranchers, miners, and illegal loggers currently profit.
The proposal moves beyond traditional donations, seeking to attract loans from wealthier nations and commercial investors. By financing preservation, Brazil hopes to show the world that intact rainforests promise richer rewards for everyone by absorbing vast amounts of planet-heating carbon dioxide.
The plan has already secured $5.5 billion in early commitments, with a landmark $3 billion pledge from Norway. Germany’s Chancellor Friedrich Merz is also expected to announce support, raising hopes for Lula’s ambition to become a reality.
The summit, held in the Amazon, also emphasizes the human element of conservation. The fund’s rules mandate that 20 percent of the money goes directly to Indigenous peoples, who have managed and preserved these lands for centuries. This initiative comes as the UN chief warns of “deadly negligence” if the 1.5-degree warming goal is abandoned.
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