3rd October 2024
New York Times
Manuela Andreoni
What if financial markets treated trees like shareholders?
Enter the Tropical Forests Forever Facility, a new fund that Brazil, which is home to about a third of the planet’s tropical forests, is pitching to the world and that would pay developing countries a fee for every hectare of forest they maintain.
The project, first presented at the global climate summit in Dubai, last November, is now in its final stages of design and it could ultimately pay out $4 billion a year to protect forests.
The fund’s mission is to flip the economics that have long fueled deforestation. Farming, logging and other industries that drive forest destruction can boost local economies, but Brazil’s fund would effectively pay countries for services that tropical forests now perform for free, such as storing planet-warming carbon and regulating rain patterns.
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