WWF has called on investors to get behind a new fund that aims to raise $125bn (€107bn) to help mitigate climate change.
The Tropical Forest Forever Facility (TFFF) is set to be launched at November’s annual climate summit, COP30, by the event’s host, the Brazilian government.
First conceived of in 2023, the latest thinking on the project was made public last week in concept note.
There are still no final details, but the facility will use a public-private-partnership model, leveraging government funding to crowd in capital from institutional investors.
That money will be used to provide long-term financing to countries that stop their forests being cut down or destroyed.
Under the current plans, governments will receive payments – starting at $4 per hectare each year – based on how well they protect their forests.
Payments reduce significantly in cases of deforestation or forest damage.
WWF described the TFFF as having “a clear, measurable approach that puts value on what matters most: keeping forests standing”.
The NGO urged institutional investors to express their willingness to participate in the facility, to enable it to get off the ground.
With an 80% rise in the destruction of primary rainforest between 2023 and 2024 alone, there is growing recognition that the goals of the Paris Agreement – and therefore investors’ net-zero commitments – are dependent on tackling deforestation, as rainforests store vast amounts of carbon dioxide.
“The TFFF offers the most promising pathway this year for delivering a bold breakthrough in nature and climate finance,” said Kirsten Schuijt, WWF’s director general.
“We urge countries and financial institutions to mobilise capital at scale and help turn the TFFF into a true success for people and the planet.”
Writing on LinkedIn last week, Robert Nasi, director general for the Centre for International Forestry Research, praised the latest TFFF concept note for pursuing a long-term funding model that was less vulnerable to “volatile, short-term political donations”.
However, he said, its biggest weakness was its dependency instead on global capital markets.
TNFD call to private sector
The Taskforce on Nature-related Financial Disclosures (TNFD) has also issued a call to the private sector this month, asking financial and non-financial companies to attend a ‘high-level business summit’ in October, during the World Conservation Congress in Abu Dhabi.
This is the first time the annual event, run by the International Union for the Conservation of Nature, will have a dedicated forum for business, and the TNFD says it will be “an important and unique opportunity to share the strategic, technical, and institutional pathways needed for business and finance to align with the goals of the Global Biodiversity Framework and to contribute meaningfully to delivering nature-positive outcomes”.
No comments yet