Brazilian prestige projectGermany committed one billion dollars to the tropical fund
This idea comes from the host country of the Climate Change Summit, Brazil: Countries and private donors should provide funds that will support countries that protect their rainforests. Chancellor Merz has promised a “significant amount” – it is now clear how much.
Germany is providing one billion euros over ten years for a new fund to protect rainforests. Environment Minister Carsten Schneider and Development Minister Reem Alabali Radovan confirmed this at the World Climate Conference in Belém. “This is about protecting tropical rainforests, the lungs of our world,” explained the two SPD politicians.
Brazilian Environment Minister Marina Silva had previously announced Germany’s contribution. Your government has launched a tropical forest fund and is asking for payments. How much money Germany will give is eagerly awaited. During his brief visit to Brazil, Chancellor Friedrich Merz only announced “significant numbers” without going into more specifics.
Rainforests are critical as the “green lungs of the earth” because they trap large amounts of climate-damaging greenhouse gases and cool the climate through water evaporation. They are also home to many animal and plant species. In many places, forests are threatened by deforestation to create farmland or pasture or to mine for gold.
The funds are expected to be disbursed in the amount of four billion dollars annually
For the Brazilian government, a fund called the Tropical Forest Forever Facility (TFFF) is a prestige project that wants to be successful in hosting the UN conference. Countries that conserve their forests should be rewarded according to this new model. Instead, they have to pay fines for every hectare of forest damaged. This will be checked using satellite imagery.
After some time started, the fund with a target volume of 125 billion US dollars (about 108 billion euros) could distribute about four billion US dollars annually – at least that is what the Brazilian government has in mind. This amount is almost three times the amount of international forestry financial assistance currently available.
Norway has announced that it will pay $3 billion into the fund over ten years. Brazil itself will contribute one billion US dollars, and Indonesia also wants to contribute one billion. Both countries have extensive tropical forests. Apart from Brazil, the founding countries include Colombia, Ghana, the Democratic Republic of the Congo, Indonesia and Malaysia.
The fund is managed by the executive boards of 18 countries – half from tropical forest countries and half from industrialized countries. The World Bank initially acted as trustee. Based on Executive Council guidelines, the funds are transferred to countries with tropical forests; It also provides an additional secretariat.
70 states can receive funds
As many as 70 developing countries can benefit from this. Recipients can decide for themselves how exactly the money will be used. However, an important commitment is that 20 percent is provided specifically for indigenous peoples and traditional communities.
According to Brazil, in the first week of November, at the time of its official launch, the initiative had been supported by 53 countries, including 19 potential state investors. According to Brazil’s idea, rich countries should voluntarily pay an initial amount of 25 billion US dollars. The foundation will be used to mobilize an additional $100 billion from the private sector over the next several years. Tropical forest fund managers should invest as much money as possible; projects that use fossil fuels are taboo.
