Groundbreaking forest conservation fund from Brazil reaches Earthshot Prize finals

Led by the Brazilian government, the TFFF proposes a new global financing model to value standing forests and ensure permanent income for tropical countries

On Saturday, October 4, the Tropical Forests Forever Fund (TFFF) announced its selection as a finalist for the 2025 Earthshot Prize. Founded by Prince William in 2020, the prize recognizes initiatives that protect and restore nature and address the planet's most pressing issues.

Described as the most ambitious financial innovation in history for forests, the TFFF is a new mechanism led by the Government of Brazil that assigns real economic value to standing forests by redefining how forest protection financing is structured. Developed with the support of ten countries from both the Global South and the Global North, as well as representatives of Indigenous Peoples and Local Communities (IPLCs), the initiative will be officially launched at COP30.

The fund offers tropical countries long-term incentives to maintain their forest conservation efforts. The TFFF aims to establish a USD 125 billion global investment fund — composed of USD 25 billion in sovereign investments and USD 100 billion in private investments — to provide tropical countries with permanent income in exchange for the lasting protection of their forests. If successful, the initiative could protect over 1 billion hectares of forest in more than 70 countries. At least 20% of payments made to these countries will go to Indigenous Peoples and Local Communities. 

Last month, during a UN event in New York, President Luiz Inácio Lula da Silva announced a USD 1 billion investment in the TFFF, making Brazil the first country to commit financial resources to the initiative, contingent on the participation of other nations.

“Brazil will lead by example and become the first country to commit to investing in the fund with USD 1 billion. I invite all partners present to make equally ambitious contributions so that the TFFF can become operational at COP30, in November, in the Amazon,” said President Lula during the UN event. “In Belém, we will live the moment of truth for our generation of leaders. Tropical forests are essential to keeping alive the purpose of limiting global warming to 1.5 °C. The TFFF is not a charity—it is an investment in humanity and the planet, against the threat of devastation by climate chaos", he added.

His Royal Highness, Prince William, founder and president of the Earthshot Prize, stated: "As we reach the halfway point of the Earthshot decade, I am inspired by this year's finalists, who embody the urgent optimism at the heart of our mission. In just five years, the Earthshot Prize has demonstrated that solutions to the planet’s most pressing issues not only exist, but are also within our reach.”

Ms. Marina Silva, Brazil’s Minister of Environment and Climate Change, emphasized: "We need to establish a new relationship with tropical forests and change how they are valued significantly. Forests are part of our culture and heritage, and they are essential to our lives. The TFFF will provide the necessary resources to preserve them”.

“Being a finalist for the Earthshot Prize, on the eve of COP30, is an honor for the four Ministries involved in the initiative —Environment and Climate Change (Meio Ambiente e Mudança do Clima), Foreign Affairs (Relações Exteriores), Finance (Fazenda), and Indigenous Peoples (Povos Indígenas)—under the leadership of President Lula. This multilateral effort will raise global awareness of the initiative, attract public and private investors, and spread the message worldwide about the vital importance of tropical forests to our lives and economies. It is a historic opportunity to ensure that preserving tropical forests is more valuable than cutting them down. Through the TFFF, we can transform the future of forest conservation and ensure long-term financing for those who protect them", said Ms. Silva.

Mr. Jason Knauf, CEO of the Earthshot Prize, stated: "The TFFF offers a once-in-a-generation opportunity to turn the tide—making living forests more valuable than dead ones—and to provide crucial support to the forest guardians around the world who call them home. The fund unlocks an enormous opportunity for people and the planet by assigning long-term value to forest protection, accelerating climate action, and community well-being".

The Earthshot Prize

This year’s group of nominees was selected from nearly 2,500 nominations submitted by the Earthshot Prize network, which includes 575 nominators from 72 countries. The 15 finalists were chosen based on assessments carried out by the prize’s selection partners and advisory panel—a global group of over 100 experts with deep knowledge in conservation, science, technology, business, finance, academia, and public policy.

As in previous years, the five winners of this year’s Earthshot Prize will be selected by Prince William and the members of the Earthshot Prize Council, a diverse group of individuals dedicated to protecting the climate and the environment. The Council is chaired by Ms. Christiana Figueres, Chair of the Earthshot Prize Board of Trustees and architect of the Paris Agreement.

Members of the Earthshot Prize Council include: Prince William, Queen Rania Al Abdullah, Cate Blanchett, Indra Nooyi, José Andrés, Wanjira Mathai, Nemonte Nenquimo, Luisa Neubauer, Naoko Yamazaki, Ernest Gibson, and Ngozi Okonjo-Iweala.

The selected solutions are aligned with the five “Earthshots”—simple, ambitious, and inspiring goals that are more relevant today than ever. More information about this year’s finalists is available on the Earthshot Prize website.

About the Tropical Forests Forever Fund

The TFFF is a Brazil-led initiative, announced at COP28 in Dubai, and developed in dialogue with ten other countries—five forest countries (Colombia, Indonesia, Malaysia, Ghana, and the Democratic Republic of the Congo) and five potential supporters (Norway, Germany, the United Kingdom, the United Arab Emirates, and France)—as well as dozens of civil society organizations and representatives of Indigenous Peoples and Local Communities (IPLCs) from around the world.

Unlike other environmental financing mechanisms, the TFFF is not based on donations. Instead, it relies on investments made by countries, philanthropies, and companies into a fund. The total capital will be allocated to a diversified portfolio of long-term, investment-grade fixed-income assets, managed by international fund managers. According to the  TFFF Concept Note, investments that cause significant environmental impact—such as deforestation or greenhouse gas emissions—are strictly prohibited, including those related to coal, peat, oil, and gas.

The returns generated from these investments will be distributed to eligible tropical forest countries, provided they meet eligibility criteria such as maintaining deforestation rates below the global average. These payments are estimated to represent more than twice the current level of concessional international financing for forest conservation, and dozens or even hundreds of times more than what the current voluntary carbon market pays for forest conservation.

The TFFF also seeks to benefit the actors who directly contribute to forest conservation. Recipient countries must commit to channeling at least 20% of the annual payments to Indigenous Peoples and Local Communities (IPLCs). This mechanism was designed in consultation with representatives of these communities, organized under the Global Alliance of Territorial Communities (GATC).

English version: Trad. Bárbara Menezes. 

Proofreading by Enrique Villamil.