Luxembourg Joins the Tropical Forests Forever Facility (TFFF) and Pledges €50 Million
The investment will run from 2026 to 2030, reinforcing the international coalition for tropical forest preservation
Luxembourg will join the Tropical Forest Forever Facility (TFFF) aiming to protect rainforests. Its financial arm will be hosted in Luxembourg. This was announced at the closing event of Luxembourg’s inaugural International Climate Finance Days on June 5 in which ministers from several countries participated: Brazil’s Minister of Foreign Affairs, Mauro Vieira, Luxembourg’s Minister of Finance, Gilles Roth, Luxembourg’s Minister of the Environment, Climate and Biodiversity, Serge Wilmes, and Norway’s State Secretary of Climate and Environment, Kristoffer André Hansen.
Luxembourg’s Minister of the Environment, Climate and Biodiversity, Serge Wilmes announced that Luxembourg will make a financial contribution to the sponsor capital of the financial arm of the TFFF, the Tropical Forest Investment Fund, (“TFIF”).
From 2026 to 2030 Luxembourg will contribute €50 million to the TFIF through its Climate and Energy Fund, and intends to maintain, from 2030 onwards, a long-term annual contribution to TFIF, reflecting its enduring commitment to the Facility and its objectives.
The announcement follows growing international support for the TFFF. Luxembourg joins Brazil, Norway, Germany, Indonesia, France, and the Minderoo Foundation in investing in this initiative.
On behalf of the TFIF Transition Committee, co-chaired by Brazil and Norway, Minister of Foreign Affairs of Brazil, Mauro Vieira, announced that the Investment Fund will be hosted in Luxembourg, a key step in transitioning the initiative from concept to a functioning mechanism. Minister Roth underlined that Luxembourg, with its renowned financial center, is an ideal choice. “Tropical forests are critical for climate stability, biodiversity and resilience. Protecting them requires not only political ambition, but also credible and scalable financial solutions.”
“The Tropical Forest Forever Facility demonstrates that multilateralism can still deliver ambitious and innovative solutions to global challenges,” said Minister Mauro Vieira. “At a time when international cooperation is under pressure, the TFFF brings together countries from North and South, as well as public and private actors, around a shared objective: making standing tropical forests economically valuable. What began as a Brazilian proposal is now becoming a truly global initiative — one that will now establish an important presence in Luxembourg through the hosting of its financial arm, the Tropical Forest Investment Fund.”
Luxembourg’s decision to support the initiative reflects the country’s longstanding commitment to sustainable finance. As a sponsor country, Luxembourg will contribute to the establishment and long-term sustainability of the Tropical Forest Investment Fund, reinforcing the international coalition behind the initiative.
TFFF
The Tropical Forest Forever Facility is an international financing mechanism designed to make standing tropical forests economically valuable by rewarding countries for conserving them. By leveraging capital markets to generate predictable, long-term financing for forest conservation and sustainable use, the initiative seeks to align economic development with the protection of some of the world’s most important ecosystems. A defining feature of the TFFF is its commitment directing a minimum of 20 percent of forest payments to Indigenous People and Local Communities, investing in effective stewards of tropical forest ecosystems.