Daily Current Affairs for UPSC : 15 Jan 2026/ What is Tropical Forest Forever Facility (TFFF)?

Tropical Forest Forever Facility (TFFF):

The Tropical Forest Forever Facility (TFFF) initiative was launched on the sidelines of the COP30 climate summit in Belém, Brazil, aiming to raise and invest USD 125 billion to conserve tropical forests.

India has joined the Brazil-led TFFF as an observer, reaffirming its commitment to multilateral climate action under the Paris Agreement.

What is the Tropical Forest Forever Facility (TFFF) Initiative?

About:

• TFFF is a permanent, self-financing investment fund aimed at conserving tropical forests. It will reward up to 74 developing tropical forest countries for keeping old-growth forests intact.
• Payments will be based on annual satellite remote sensing data for transparent forest monitoring.

Purpose and Rationale: It aims to shift economic incentives by making standing forests more valuable than cleared land, countering deforestation driven by higher returns from land conversion.

• It also recognises tropical forests’ ecosystem services, including carbon storage, temperature regulation, and biodiversity support.

Funding Structure: It aims to raise USD 125 billion, with USD 25 billion from wealthy governments and philanthropists and USD 100 billion from private investors.

• The fund will invest in a mixed portfolio of public and corporate market bonds, and annual returns will be given to tropical forest nations as incentives for forest conservation.

Funding Commitments: Countries pledging contributions include Brazil (USD 1 billion), Colombia (USD 250 million), Indonesia (USD 1 billion), Norway (USD 3 billion over 10 years), the Netherlands (USD 5 million), and Portugal (1 million Euros).