You’re witnessing a significant shift in how climate funding is approached globally. China has informed Brazil that it intends to invest in the Tropical Forests Forever Facility (TFFF), a global fund proposed by Brazil to protect endangered forests, according to two individuals with direct knowledge of the discussions.
If confirmed, this move would mark a significant change in global climate finance. Until now, most of the financial support for climate action has come from wealthy countries that have historically contributed the most to global warming. China’s planned contribution could encourage other developing nations also to step up and invest in climate solutions.
The news comes at a time when countries like the United States are reevaluating their ambitious funding promises, despite increasing pressure from nations struggling to cope with the worsening effects of climate change.
Meeting between finance ministers paves the way
Brazil’s Finance Minister, Fernando Haddad, met with his Chinese counterpart, Lan Fo’an, on Thursday during a gathering of finance ministers held ahead of the BRICS summit. The meeting took place in Rio de Janeiro, where the summit of major developing nations is scheduled to begin on Sunday.
One source who witnessed the conversation said, “Lan told Haddad that he considered the fund idea important and that China would collaborate.” While the discussion didn’t involve specific figures, Brazilian officials have taken the message as a clear sign that China intends to contribute.
So far, no public announcement has been made, and neither China’s embassy in Brasilia nor Brazil’s Finance Ministry responded to requests for comment. However, the Brazilian government believes an official confirmation could come during the United Nations COP30 climate summit, which will take place in November in the Amazonian city of Belém.
A growing coalition for the TFFF
The TFFF is designed as a multilateral fund to support the conservation of tropical forests globally. Policymakers envision it as a US$125 billion facility to be managed like an endowment. Under this model, countries with intact tropical forests would receive yearly payments based on the amount of forest they keep standing.
Although it’s unlikely the fund will begin at that full scale, initial signs of support have already come from several countries, including the United Kingdom, France, Germany, Norway, Singapore, and the United Arab Emirates.
Brazilian President Luiz Inácio Lula da Silva had previously discussed the fund with Chinese President Xi Jinping during a state visit to China in May. Brazil now hopes to bring more natural resource-rich developing countries into the fold, with special interest in attracting support from the Middle East.
The idea behind TFFF reflects growing international concern over the destruction of tropical forests. These forests are crucial in the fight against climate change because they absorb large amounts of carbon dioxide. They are also home to vast biodiversity, making their protection vital for both the climate and the planet’s ecosystems.
The United States had once shown interest in the fund, but that early backing disappeared after former President Donald Trump withdrew the country from the Paris Agreement.
As Brazil prepares to host COP30, the TFFF is expected to be one of its central new initiatives. If countries like China join in, it could signal a new era where emerging economies actively shape climate finance, not just as recipients but as global partners.
