Belém, Brazil, Greenpeace recognises the launch of the Tropical Forest Forever Facility (TFFF) as a step towards ending deforestation, but gaps remain for the TFFF to become a credible financial instrument for the protection of high-integrity tropical forests. Greenpeace calls on world governments to continue improving the TFFF and to agree on an action plan at COP30 to deliver transformative forest protection.
Carolina Pasquali, Executive Director, Greenpeace Brazil said: "The launch of the Tropical Forest Forever Facility is an important milestone for the protection of the world's tropical forests. The mechanism can and should be improved to address some of its gaps, however, it is a step in the right direction as it values forests standing and guarantees direct access to resources to Indigenous Peoples and local communities. As deforestation rates in the Amazon continue to decrease – 11% compared to the previous period, 50% compared to 2022, Brazil is in a unique position to build on the momentum and pave the way for parties at COP30 to deliver a global action plan to end deforestation and forest degradation by 2030. But we will only achieve that if other countries step up and do their part."
Progress and Gaps in the TFFF
The latest version of the TFFF has shown improvements, such as stronger transparency measures to allocate forest payments. The recognition of the role of Indigenous Peoples and local communities (IPs&LCs) and their need for direct access to finance sets an important precedent for COP30 finance negotiations, through the inclusion of a mandatory 20% direct allocation of finance to IPs&LCs.
However, to deliver its full potential, the TFFF must still address significant issues. With the threshold for forest cover eligibility set at a 20-30% canopy cover, high-integrity forests risk being degraded or logged and still qualify for payments. Moreover, degradation monitoring focuses only on fire scars, excluding other drivers such as logging and fragmentation. Meanwhile the current exclusion list to prevent harmful industries from being eligible for investments is insufficient.
The TFFF financing model and accountability mechanisms must also be strengthened. Instead of prioritising paying sponsors and investors first, the system should ensure equitable and timely payments to tropical forest countries and IPs&LCs. As the Facility is dependent on the volatility of global markets, the TFFF funding and the allocation of the resources by tropical forest countries must be critically scrutinised to ensure forest protection funds are stable and reliable, especially for IPs&LCs. Additionally, any contributions to the TFFF should not count towards the New Collective Quantified Goal (NCQG), nor should it divert any resources already allocated to other climate and biodiversity action.
