Why in the news?

  • At the Leaders’ Summit in Belem, Brazil, where heads of state have converged ahead of the climate conference, India said it would join the Tropical Forest Forever Facility (TFFF) as an ‘Observer’.

Tropical Forests Forever Facility (TFFF)

  • Launched by: Brazil at COP28 (Dubai, 2023).
  • Purpose: Long-term, performance-based finance for tropical forest conservation and climate mitigation.
  • Nature: A global endowment-style fund rewarding countries for maintaining intact tropical forests.
  • Objectives
    • Incentivise forest-rich developing countries to preserve standing forests.
    • Compensate for global ecosystem services: carbon capture, biodiversity, rainfall regulation.
    • Directly benefit Indigenous Peoples and Local Communities (IPLCs).
    • Provide a predictable, perpetual financial mechanism for forest protection.
  • Features
    • Proposed Fund Size: ~USD 125 billion.
    • Annual Payouts: Based on forest area conserved (≈ USD 4 per ha / year).
    • Penalty: Deductions for deforestation or degradation.
    • Monitoring: Satellite-based verification.
    • Governance: Multi-stakeholder; 20% funds earmarked for IPLCs.
    • Financing Model: Blended finance—public, private, and philanthropic sources.
  • Significance
    • Promotes global climate justice.
    • Supports Paris Agreement and Kunming-Montreal Biodiversity Framework goals.
    • Shifts from “avoiding deforestation” (REDD+) to rewarding preservation.=
    • Encourages Blue & Green Economy approaches.
  • Challenges
    • Mobilising massive funding.
    • Ensuring fair distribution and transparency.
    • Coordination with existing mechanisms (e.g., REDD+, GCF).
    • Possible perverse incentives or dependency risks.

 

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