Governments, Indigenous Peoples and Local Communities, and the Private Sector Expand Support for Novel Forest Financing Mechanism
Following a packed schedule of London Climate Action Week events, the Tropical Forest Forever Facility (TFFF) was back on the agenda at the Hamburg Sustainability Conference this week, kicking off two days of discussions about creating resilient economies with an event that brought together global governments, Indigenous Peoples and Local Communities and the private sector for a discussion on this paradigm-shifting approach to forest conservation.
The standing-room-only event took stock of the progress made since COP30, highlighted the crucial role that Indigenous People and Local Communities have played in shaping the overall design of TFFF, focused on what is necessary to move from political commitment to implementation, and laid out next steps to operationalize the TFFF as a credible and transformative instrument for long-term forest finance.
State Secretary at the German Federal Ministry for Economic Cooperation and Development Niels Annen stressed the new forms of multilateral cooperation that are building the TFFF as it moves from concept to consolidated reality. “Originally led by countries from the Global South, the TFFF is now a global collaboration by a diverse set of international players. The TFFF reflects our shifting world order, with new, impact-oriented solutions emerging from new partnerships. Every country should be finding ways to be a part of the TFFF.”
State Secretary to the Minister of International Development of Norway, Stine Renate Håheim said, “We live in challenging times. That we can gather here to build trust, hope, and solutions like the TFFF, is very important. Tropical forest ecosystems are critical for food and water. Lack of food and water drives conflict. Conflict drives more conflict. The TFFF is not just a fund for conservation, but also a fund for food, for water, and for stability. We cannot afford to fail to protect tropical forests. We urge more countries to act strategically and boldly, and make commitments to the TFFF.”
One of the unique elements of TFFF is the extent to which Indigenous Peoples and Local Communities have engaged as co-architects, yielding precedent-setting design and governance structures. For example, the dedicated financial allocation requires that a minimum 20% of forest payments be allocated to Indigenous Peoples and Local Communities, funneling capital at scale directly to forest stewards in acknowledgement of their labor as a global conservation workforce.
Juan Carlos Jintiach, Executive Secretary, Global Alliance for Territorial Communities which is deeply engaged in the TFFF design process, said, “We have been sustaining tropical forest ecosystems since before capitalism was a concept. We have knowledge and science as old as the forest itself. We were invited to participate in creating TFFF a few years ago, and that’s already remarkable. Now we continue to participate to ensure that the commitment to allocate a minimum of 20% of the funds to Indigenous Peoples and Local Communities is fulfilled. TFFF is our opportunity to show the world that we can work together in new ways, to share knowledge, and to solve real global problems.”
Valerie Hickey, Director Environment at the World Bank Group, spoke about the potential of TFFF to transform how forest conservation is funded. “Forests are natural infrastructure that generate jobs and more competitive economies,” said Hickey. “The TFFF is designed to reward verified, measurable forest conservation, ensuring predictable, performance-based payments that directly benefit both countries and the communities that steward this natural capital. The World Bank Group is pleased to support this effort by providing the administrative backbone to get this initiative off the ground.”
Special Advisor in the Ministry of Finance for Brazil João Paulo de Resende, explained the benefit of using financial markets to build an engine that can generate funds for forests at scale. “As long as tropical forests are standing, they provide the world with crucial ecosystem services no matter the political environment of the day,” said de Resende. “The TFFF is a financial mechanism to match. It works despite what’s going on in global politics, beyond short-term political cycles. It will finally enable us to invest in maintaining tropical forests–critical natural infrastructure–on a global scale.”
“TFFF offers a credible entry point into nature-related financing by mobilising capital at scale through measurable forest protection outcomes and predictable, performance-based funding,” said Esra Turk, Global Head of Sustainable Finance at Investment Bank of Deutsche Bank. “TFFF’s governance is robust with transparency, independent data verification and impact assessment incorporated into its systems with the World Bank hosting the TFFF secretariat. The ongoing investor engagement would look to ensure the structure is aligned with market expectations. Deutsche Bank is proud to support TFFF.”
###
