A financial mechanism designed to incentivise tropical forest conservation received unanimous backing from BRICS leaders during the 17th BRICS Summit. The Tropical Forests Forever Fund, spearheaded by Brazil, represents a departure from traditional donation-based conservation models by functioning as a revenue-generating investment mechanism that rewards measurable forest preservation results.
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Brazil’s Minister of the Environment and Climate Change, Marina Silva, outlined the fund’s innovative approach during the summit, explaining that the Global South is developing a strategic mechanism designed to leverage public resources to attract private investment at a 1-to-4 ratio.
The fund differs fundamentally from conventional conservation financing by paying for tangible results rather than promises, rewarding existing forest preservation rather than merely preventing deforestation, and incorporating indigenous and traditional communities directly into decision-making processes.
Under the framework, participating countries will receive payments proportionate to their preserved tropical and subtropical moist forest areas, with satellite-based verification systems ensuring deforestation remains below predetermined thresholds. Countries that exceed these limits will face financial penalties.
A key feature of the fund requires that at least 20 percent of national payments be allocated to indigenous and traditional communities, recognising their crucial role in forest stewardship and sustainable management practices.
This provision addresses long-standing concerns about conservation initiatives that exclude local communities from both decision-making and benefit-sharing arrangements.
The BRICS Leaders’ Framework Declaration on Climate Finance, released during the summit, highlighted the Tropical Forests Forever Fund as a promising blended finance instrument capable of generating predictable, long-term financial flows for forest protection while expanding global forest cover.
The initiative aims to secure long-term environmental and climate stability through large-scale, predictable, and performance-based payments to forest-conserving nations, according to the official website of the 2025 Brazil BRICS Presidency.
The fund is scheduled for official launch at COP30 in November 2025, which will be held in Belem, Brazil, under the country’s presidency. This timing positions the initiative as a centrepiece of Brazil’s climate diplomacy efforts during its COP presidency.
The endorsement by BRICS leaders—representing major emerging economies including Brazil, Russia, India, China, and South Africa—signals significant political momentum behind the innovative financing mechanism as global attention turns toward more effective climate action strategies.
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