Brazil’s Climate Summit Kicks Off with $5.5B in Pledges for Forest Fund

Momentum for a new global conservation fund is building on the second day of climate talks in Brazil, with officials announcing a total of $5.5 billion in pledges. The financial commitments are flowing into the “Tropical Forests Forever Facility,” a flagship proposal by Brazilian President Luiz Inácio Lula da Silva.
The fund is designed to halt the destruction of tropical rainforests by paying 74 developing countries to preserve their natural resources. Norway has emerged as a key backer, making the largest commitment of the day with a $3 billion pledge. Germany is also expected to contribute following a meeting between Chancellor Friedrich Merz and Lula.
The talks are being held in the symbolic city of Belem, which is part of the Amazon rainforest. The location emphasizes the critical role these ecosystems play in regulating the global climate by absorbing carbon dioxide, a key greenhouse gas.
Unlike traditional aid, Lula’s proposal is structured around interest-bearing debt from wealthy nations and commercial investors. The goal is to create a powerful economic incentive for preservation, making it more profitable than the destructive industries of logging, mining, and ranching.
This financial push comes amid sharp warnings from the UN chief about the “moral failure” of exceeding the 1.5-degree warming limit. However, global unity remains elusive, as the leaders of the top three polluting nations—China, the US, and India—were absent from the summit’s preliminary gathering.