Germany Supports Brazil’s $125 Billion Rainforest Fund at UN Climate Talks

World leaders convened in Brazil for United Nations climate talks, focusing on strategies to protect tropical forests and combat global warming. Brazilian President Luiz Inácio Lula da Silva unveiled the Tropical Forest Forever Facility, a $125 billion initiative designed to pay developing nations for each hectare of forest they preserve.

German Chancellor Friedrich Merz pledged support, giving significant momentum to the effort. The fund operates through interest-bearing debt, ensuring returns for creditors while financially rewarding conservation efforts. Initial pledges have already reached $5.5 billion, with contributions from Norway, France, Brazil, and Indonesia.

The fund also allocates 20% of payments to Indigenous communities, recognizing their crucial role in forest stewardship. Despite support, some major powers—including the United States, China, India, and Russia—have not sent senior representatives, highlighting geopolitical tensions in climate diplomacy.

The Tropical Forest Forever Facility represents a landmark approach to incentivizing environmental preservation while promoting global collaboration.