Brazil to propose mega fund to conserve forests at COP28 climate summit

SAO PAULO – Brazil plans to propose a “huge” fund to pay for the conservation of tropical forests at the United Nations COP28 climate change summit that begins later this month in Dubai, the country’s top climate negotiator said on Nov 23.

That potential financing mechanism, not previously reported, would be the latest in a proliferation of multilateral environmental funds. Countries agreed in the past year to establish a giant fund dedicated to biodiversity and another to pay for the destruction caused by climate change.

The funds funnel money from rich countries to poor developing nations that struggle to otherwise pay for their environmental efforts.

Brazil is the world’s largest rainforest nation and home to some 60 per cent of the Amazon jungle. It is seen as vital to curbing climate change and protecting unique plant and animal species.

The country presented the idea of a tropical forest conservation fund on Nov 23 at a meeting with ministers from seven other Amazon-rainforest countries, according to Brazil’s top climate diplomat Andre Correa do Lago.

“It’s a conceptual proposal with a view to create a fund to help conserve tropical forests around the world… in 80 countries,” Mr Correa do Lago said.

He said the proposal has not been finalised and Brazil is seeking support and suggestions from the other rainforest nations.

Asked if the fund would rival US$100 billion (S$134 billion) in annual funding previously promised by rich nations in climate financing, Mr Correa do Lago declined to give the proposed size of the fund but said it would be “huge”.

The fund would not value forest conservation in terms of carbon, like many existing schemes, since protecting forests would primarily prevent further greenhouse gas emissions rather than absorbing additional carbon dioxide already in the atmosphere, Mr Correa do Lago said.

He said the value would likely instead be linked to the area of forest measured in hectares, or units of 0.01 sq km.

The international proposal to conserve forests will be partnered with a domestic programme to reforest destroyed areas.

Brazil will also launch plans at COP28 for an “Arc of Restoration” to counter the so-called arc of deforestation that is advancing ever deeper into the Amazon. National development bank BNDES will run the project, Mr Correa do Lago said.

Brazil is back

Shortly after winning the election, President Luiz Inacio Lula da Silva at the UN climate summit COP27 in 2022 announced “Brazil is back” as an international environmental leader.

In 2023, he will present how Brazil is advancing on all environmental fronts, Mr Correa do Lago said, including reducing Amazon deforestation in the 12 months till July, to the lowest level since 2018.

The eight Amazon countries are also discussing a proposal on whether to issue a joint commitment to end deforestation by 2030, a target already endorsed by Brazil and some others. Mr Correa do Lago said that the proposal was advancing but declined to say if the deal could be announced at COP28.

He said Mr Lula will push hard for the world to redouble efforts to limit climate change to a 1.5 deg C temperature rise, despite many analysts saying this target may be out of reach. Global temperatures have already risen 1.2 deg C on average.

Mr Correa do Lago declined to say whether Brazil would support a COP28 decision to “phase out” fossil fuels entirely.

At previous COP summits, China and India blocked that language, with the nearly 200 countries in attendance, instead only calling for a “phase down” of fossil fuels. REUTERS