UK will not invest in Brazilian forest fund key to COP30

LONDON – Britain will not be investing in a

key fund meant to protect global rainforests

that Brazil wants to launch at the COP30 climate summit, according to a person familiar with the matter. Without British investment, it will be increasingly difficult for Brazil to meet its goal of raising at least US$10 billion (S$13.07 billion) for the fund by 2026.

The so-called Tropical Forest Forever Facility (TFFF) is Brazil’s signature initiative at the annual United Nations climate summit, which will begin later this week in the city of Belem, a gateway to the Amazon rainforest. The initial goal called for governments around the world to invest US$25 billion that would be leveraged to create a US$125 billion vehicle towards preserving global forests.

On Nov 4, after months of efforts that yielded financial commitments from only Brazil and Indonesia, Brazil Finance Minister Fernando Haddad lowered the near-term target. “With everything I’ve heard, I believe we can raise US$10 billion for the TFFF by next year,” he said at Bloomberg Green at the COP30 conference in Sao Paulo. 

Earlier, Bloomberg reported that British Prime Minister Keir Starmer was considering investing at least US$1 billion in the TFFF. The British government had already provided a grant worth a few million dollars to organisations that are helping with the technical work needed to create the fund.

However, the government’s Treasury department warned that the investment is not something Britain can afford at a time when it is trying to tackle its surging debt burden, according to the person. Chancellor of the Exchequer Rachel Reeves is due to present the budget later in November and is considering raising taxes to fill government coffers. The British embassy in Brazil declined to comment.

World leaders are set to meet on Nov 6 in Belem, where Brazil President Luiz Inacio Lula da Silva hopes many will commit to fund the TFFF. Brazil has already said it will invest US$1 billion, while Indonesia has indicated that it will match Brazil’s sum. BLOOMBERG

With assistance from Daniel Carvalho.