A crucial meeting is scheduled at the Belem climate summit between Brazil’s President Luiz Inácio Lula da Silva and German Chancellor Friedrich Merz, with Germany expected to pledge its support to a new $5.5 billion rainforest protection fund.
This new “Tropical Forests Forever Facility” is Brazil’s flagship proposal at the talks. It’s designed to pay 74 developing countries to halt deforestation, a critical step in combating global warming. The fund has already received a massive $3 billion boost from Norway.
The summit, held in the Amazonian city of Belem, aims to shift the economic incentives away from destruction and toward preservation. The fund would use interest-bearing loans from wealthy nations and investors to make it more profitable for governments to keep their trees standing.
These tropical rainforests are essential carbon sinks, and Brazil is arguing that their preservation offers “richer rewards” to the entire world than the short-term profits from logging or ranching.
The fund also includes a significant social justice component, with 20 percent of the money earmarked for Indigenous peoples. This financial momentum is a positive development at a summit where the absence of leaders from the US, China, and India has raised concerns about global unity.