Brazil’s Forest Finance Initiatives Offer Immediate Solutions Ahead of COP30

As the world gears up for COP30 in Belém, Brazil, the focus is shifting to the country’s innovative Tropical Forests Forever Facility (TFFF). This initiative aims to incentivize nations to preserve their forests, marking a significant step in global efforts to combat deforestation. While the TFFF lays the groundwork for future forest protection, immediate solutions are already underway through large-scale initiatives that effectively link public policy, community leadership, and carbon finance.

One such initiative, known as jurisdictional REDD+ (JREDD+), is designed to mobilize essential financing today. According to the United Nations Environment Programme (UNEP), forests are vanishing at an alarming rate of approximately 10 million hectares annually. To align with the climate goal of limiting global warming to 1.5°C, tropical regions require an estimated annual investment of $66.8 billion in forest conservation by 2030.

Framework for Immediate Action

The Forest Finance Roadmap, launched by 34 governments under the Forest Climate Leaders Partnership, provides a practical framework for aligning policy, financial resources, and accountability. This roadmap acknowledges that no single mechanism can address the challenges of deforestation; rather, a comprehensive suite of solutions is necessary to reward both reductions in deforestation and the maintenance of existing forests.

Brazil’s federal commitment to the TFFF demonstrates its long-term ambitions. In parallel, states like Tocantins, Pará, and Piauí are advancing JREDD+ programs that channel private financing directly to local communities, Indigenous groups, and smallholder farmers. These programs are bolstered by independent monitoring and benefit-sharing systems, adhering to the ART-TREES standard, which ensures verified results.

Tocantins alone encompasses 27 million hectares across the Amazon and Cerrado regions, both of which are among the most biodiverse yet threatened areas on the planet.

The Importance of JREDD+

JREDD+ operates as a nationwide approach that rewards verified reductions in deforestation. It directly links financing to governmental policies and land-use planning, enabling regions to transition from deforestation practices to sustainable production models. This approach enhances transparency, permanence, and equity; credits are only issued following independent verification, with benefits shared with local communities through Free, Prior and Informed Consent (FPIC) processes.

This initiative fosters a reliable flow of public and private capital into measurable outcomes, establishing a framework that investors, regulators, and communities can trust. Moreover, it integrates policies such as the EU Deforestation Regulation with the voluntary carbon market, assisting companies in meeting new disclosure requirements.

Complementary Strategies for Forest Protection

While some may perceive TFFF and JREDD+ as competing initiatives, they are, in fact, complementary strategies. The TFFF will reward nations maintaining low deforestation rates, creating long-term incentives. In contrast, JREDD+ provides immediate performance-based financing for verified emissions reductions. Together, they form a robust portfolio aimed at addressing the forest finance gap.

This complementary approach is already evident in Tocantins. Investments from Silvania, a nature finance platform backed by Mercuria, have facilitated the establishment of the state’s environmental intelligence center (CIGMA). This center enables real-time tracking of deforestation and has supported numerous consultations with Indigenous and traditional communities, thus reducing deforestation pressures and establishing systems to ensure long-term forest protection.

As COP30 approaches, the focus must shift from ambition to tangible execution. Brazil’s leadership, spanning from national policy to state-level implementation, serves as a blueprint for other nations to emulate. The framework exists, and proof of its effectiveness is evident. What remains is the urgent need to channel capital into JREDD+ initiatives while simultaneously supporting the long-term vision of the TFFF.

The upcoming discussions in Belém will shape the future of the Amazon and, by extension, global forest conservation efforts. The success of COP30 will hinge on the ability to act swiftly on the solutions currently available, thereby avoiding the risk of being marked as a missed opportunity in the fight against climate change.