India has joined the Brazil-led Tropical Forests Forever Facility (TFFF) as an observer, signaling its commitment to global efforts in forest preservation and climate action. The announcement was made at the Leaders' Summit of COP30 in Belém, Brazil, where Indian Ambassador to Brazil Dinesh Bhatia reaffirmed India's dedication to multilateralism and the Paris Agreement.
The TFFF, launched by Brazil, aims to reward tropical countries for protecting and expanding their forests. It seeks to mobilize approximately USD 125 billion through a combination of public and private investments. The returns generated from these investments will be used to compensate nations for their forest conservation efforts, making forest preservation economically viable. The fund will provide countries conserving their forests with $4 per hectare per year, adjusted based on verified performance using satellite monitoring.
India's decision to join the TFFF as an observer demonstrates its support for collective and sustained global action towards preserving tropical forests. Ambassador Bhatia stated that India welcomes and supports Brazil's initiative, recognizing it as a significant step in the right direction.
Speaking at the COP30 Leaders' Summit, Bhatia highlighted that global climate ambition remains inadequate, even a decade after the Paris Agreement. He urged developed countries to accelerate their emission reduction efforts and deliver on their promises of climate finance to developing nations. Bhatia also said that mitigation is important, but adaptation to address climate risks and vulnerabilities at the local level is equally important, more so in developing countries.
India has already made significant strides in meeting its climate targets. Bhatia noted that India has reduced the emission intensity of its GDP by 36% between 2005 and 2020. Non-fossil power now accounts for over 50% of India's total installed capacity, enabling the country to achieve its Nationally Determined Contribution (NDC) target five years ahead of schedule. Furthermore, India has expanded its forest and tree cover, which now stands at 25.17% of its total geographical area. This has created an additional carbon sink of 2.29 billion tonnes of carbon dioxide.
The TFFF is designed as a self-sustaining mechanism driven by returns from capital investments rather than aid. It aims to raise approximately US$125 billion, with US$25 billion from governments and philanthropies and US$100 billion from private investors. The fund will invest in emerging markets and other high-yield sovereign bonds, repaying investors with a fixed rate of return. The remaining profits, estimated to be around US$4 billion annually, will be distributed to tropical countries at roughly US$4 per hectare of preserved forest, with penalties for deforestation or degradation. At least 20% of these payments must be directed towards Indigenous peoples and local communities.
To be eligible for TFFF funding, countries must demonstrate low and declining deforestation rates and have transparent monitoring systems. Over 70 countries, collectively hosting over one billion hectares of tropical forest, could potentially benefit from the facility if they meet the eligibility criteria. A 12-member steering committee, comprising six tropical forest countries and six investor nations, will guide the TFFF, with the World Bank serving as the interim host and trustee.
India's participation in the TFFF aligns with its existing national policies and programs aimed at forest conservation and climate change adaptation. These include the Forest Conservation Act of 1980, the National Forest Policy of 1988, the National Agroforestry Policy, and the Green India Mission. These initiatives focus on afforestation, reforestation, community participation, and sustainable forest management. India's National Forest Policy aims to maintain one-third of the country's geographical area under forest and tree cover.
The TFFF has garnered support from numerous countries and organizations. Five tropical forest nations—Colombia, Ghana, the Democratic Republic of Congo, Indonesia, and Malaysia—have already joined the initiative. Potential investor countries include Germany, the United Arab Emirates, France, Norway, and the United Kingdom. The initiative has been endorsed by 53 countries, including 19 potential sovereign investors and 34 tropical countries that together hold over 90 percent of the planet's tropical forests.
