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Belém as a test of a new model of forest finance

17 Mar 2026
2 min

Climate Summit in Belém, Brazil

The climate summit held in Belém, Brazil in November 2025 highlighted the need for a paradigm shift in global conservation efforts, focusing not just on pledges but on altering the power structures governing tropical forests.

Tropical Forest Forever Facility (TFFF)

  • The TFFF is a financial mechanism aimed at compensating countries for maintaining forests, with $5.5 billion in initial commitments, including $3 billion from Norway.
  • The fund is designed to generate returns and reward long-term forest conservation rather than just avoiding deforestation.
  • At least 20% of performance-based payments are allocated to indigenous peoples and local communities, emphasizing their role in forest stewardship.
  • Indigenous and local communities were actively involved in designing the facility, although they lack voting rights on its governing bodies.

Criticism and Challenges

  • Civil society groups, like the Global Forest Coalition, criticize the TFFF as “colonialistic” and argue it may benefit intermediaries more than forest communities.
  • Concerns exist about the payment rate and risk of funds being absorbed by national governments, with inadequate benefits for local communities.
  • Effective delivery mechanisms and accountable institutions are crucial for the fund's success.

Steps Taken by Brazil

  • Brazil announced a digital platform to assist forest countries in navigating TFFF eligibility with the help of global partners like UNDP and WWF.
  • The platform aims to offer technical assistance and promote inclusion and knowledge sharing.

Indigenous Rights and Land Tenure

  • For indigenous groups, protecting the Amazon is both an environmental fight and a struggle for survival, with land rights being central to the debate.
  • The Forest and Climate Leaders’ Partnership committed $1.8 billion from 2026-2030 to support indigenous and local communities.
  • Climate justice and nature protection are intertwined, and sidelining indigenous leadership weakens climate action and human rights.

Conclusion

The TFFF represents a significant step towards forest conservation, but its effectiveness hinges on transferring power to forest communities and ensuring financial mechanisms do not replicate old exclusion patterns. Genuine conservation will rely on strengthening community rights and not just financial pledges.

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WWF

World Wide Fund for Nature. A global environmental organization working on issues of conservation, research, and advocacy, frequently collaborating on projects related to forest protection and biodiversity.

UNDP

United Nations Development Programme. A UN agency that helps countries eliminate poverty and achieve sustainable economic growth and human development. It is a key component of the UN Development System.

Global Forest Coalition

A civil society network that advocates for forest protection and the rights of forest-dependent communities, often critical of financial mechanisms that may not adequately benefit local populations.

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