TROPICAL FORESTS FOREVER FACILITY (TFFF)

NEWS

• India has joined the Brazil-led Tropical Forests Forever Facility (TFFF) as an observer (Nov 2025).
• The move comes amid calls for developed nations to accelerate emission cuts and fulfill climate finance commitments under the Paris Agreement (10th anniversary).

HIGHLIGHTS

Objective of TFFF

• Launched: November 6, 2025, by Brazil.
• Goal: To reward tropical countries for protecting, expanding, and restoring forests.
• Target Mobilisation: Around USD 125 billion from public and private investments.
• Nature: A global South-led, innovative, performance-based financing mechanism for forest conservation.

How TFFF Works

• Ecosystem Valuation: Assigns financial value to the ecosystem services provided by tropical forests.
• Performance-Based Payments: Rewards countries that successfully curb deforestation and restore forest cover.
• Funding Mechanism:
  • Raises investment from sovereign and institutional investors, not traditional donors.
  • 20% of payments earmarked for Indigenous Peoples & Local Communities (IPLCs).
• Country Autonomy: Recipient nations decide the policy approach and allocation of funds.

Eligibility Criteria

• Over 70 Tropical Forest Countries (TFCs) with 1 billion hectares of tropical/subtropical forests.
• Criteria include:
  • Annual deforestation rate below 0.5%.
  • Transparent monitoring and equitable resource-sharing mechanisms.
  • Compliance with TFFF charter standards on transparency and accountability.
• High-income or monoculture forest nations are excluded.

How TFFF Differs

• Unlike REDD+ or short-term carbon-credit schemes, TFFF provides long-term, results-based financing.
• Operates as a self-financing investment facility, ensuring financial sustainability and shared benefits for investors and forest nations.
• Promotes South-South cooperation, strengthening leadership of tropical countries in global climate action.

 India’s Role & Position

• India welcomed TFFF, calling it a collective step for sustainable forest preservation.
• Emphasized adaptation and local climate resilience, urging developed countries to achieve net-zero and net-negative emissions sooner.