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.
“With the Tropical Forest Forever Facility, we have an opportunity to address one of the most significant gaps in global climate finance,” said Finance Minister Gilles Roth. “Protecting tropical forests is essential for biodiversity, climate stability and sustainable development. Luxembourg is proud to support an initiative that seeks to create lasting incentives for conservation and to help build a durable financial framework for protecting these vital ecosystems”, adds Minister Serge Wilmes.
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.
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.
QUOTES
Prime Minister of Luxembourg, Luc Frieden
“Luxembourg is constantly reinventing itself to meet global challenges. I am proud that Luxembourg can contribute to meeting a truly global challenge through its financial expertise and lead by example in advancing green finance, becoming the host of the TFFF and first country to commit since its launch at the COP30 in Belém. Our contribution reflects our strong belief in innovative and results-oriented solutions to combat climate change, alongside partners from around the world.”
Minister of Climate and Environment of Norway, Andreas Bjelland Eriksen
“The TFFF offers an opportunity for countries to put in place a global incentive structure that rewards the success of protecting the tropical forest. Furthermore, by channeling at least 20 percent of the funding to the Indigenous Peoples and Local Communities, the TFFF directly rewards communities who have always been the most dedicated stewards of these ecosystems. This is an important global partnership that is critical for protecting the rainforest also in the years to come.”
Minister for Economic Cooperation and Development of Germany, Ms. Reem Alabali Radovan
“Protecting tropical forests is an investment in our shared future and in the livelihoods they sustain. The TFFF demonstrates how international cooperation can align financial investments with the protection of our nature – and deliver tangible benefits for Indigenous Peoples and local communities. Germany fully supports the initiative.”
Ambassador of the Netherlands in Luxembourg, Carin Lobbezoo
“We congratulate Luxembourg with its leadership in mobilizing the financial sector for climate finance. The Netherlands has been working with institutional investors to scale-up international climate investments and supports the start-up of the Tropical Forest Forever Facility as a potential game changer. We are happy to see Luxembourg’s new commitment to the TFFF and keen to take this work forward together.”
United Nations Forum on Forests, Director, Juliette Biao
“We welcome innovative approaches such as the Tropical Forest Forever Facility, which leverages results-based and blended finance to mobilize private sector and philanthropic contributions systematically and at scale. Fulfilling the UNFF mandate requires urgent, strengthened means of implementation through enhanced, predictable and diversified financing from all sources — for all types of forests, all Global Forest Goals, and all globally intergovernmentally agreed forest-related objectives. Countries in a position to do so are encouraged to actively contribute to these efforts and collectively accelerate progress toward our global forest goals.”
