What is the Tropical Forests Forever Facility (TFFF)?

Updated in February 2026

The TFFF is a new investment fund to pay tropical countries to halt deforestation and degradation. It was officially launched at the Leaders’ Summit ahead of COP30 in Belém in November 2025.

Despite being endorsed by 53 countries, the fund fell short of its expected starting capital, gathering only $6.7 billion out of the predicted $25billion. 

The TFFF was first proposed by Brazil at the 28th United Nations climate summit (COP28) in 2023, and despite the major attention it attracted running up toits launch, its future now seems uncertain as questions remain around its leadership, and the shape it may have to take with such limited seed funding. 

How does the financial model work? 

The money will come from a permanent endowment fund created by a combination of sovereign and philanthropic capital and private investment. 

How will it work in practice?

The TFFF aims to keep forests standing by paying nations an initial annual fee of $4 for every hectare of forest they maintain, with deductions for any area deforested each year. These deductions are intended to act as an incentive for countries with low deforestation rates to continue pushing towards zero deforestation. 

What’s in it for forest communities? 

Recipient countries are required to allocate a minimum 20% of the funds to Indigenous and local communities. 

These communities hold or manage more than half of the world’s intact forests, and studies show that they’re the best custodians of the world’s forests.

For the TFFF to succeed, they must move from the fringes of the TFFF to its heart.

How can Indigenous and local communities play a key role in the TFFF? 

In version 3.0 of the TFFF’s concept note, payments are in the hands of national governments.

For the TFFF’s funding to reach its intended recipients, it must go directly to them, to the largest extent possible.

Funding mechanisms must be co-designed by Indigenous and local communities and civil society organisations, not imposed on them. 

Indigenous and local communities and civil society groups need to figure more prominently in the TFFF’s governance model. 

What other potential shortcomings need to be addressed for the TFFF to succeed?  

The fund rightly respects national sovereignty — allowing countries to use revenues from forest preservation (monitored via satellite) to fund projects and policies of their choice — but there is a clear need for stronger environmental and social safeguards. 

The fund must also exclude certain industries and investors and adhere to Environmental and Social Governance standards applied by the World Bank’s International Finance Corporation.  

An accessible, transparent and responsive grievance and redress mechanism is also needed to hold countries and investors accountable. 

Categories: FAQs, Finance for forests and peoples