Belém as a test of a new model of forest finance

The climate summit that was held in Belém, Brazil in November 2025, refocused renewed global attention to a difficult but unavoidable truth: protecting tropical forests requires more than ambitious pledges — it requires a fundamental shift in who holds power over those forests.

As world leaders gathered in the Amazon city, the signature initiative was Brazil’s Tropical Forest Forever Facility (TFFF), or a finance mechanism presented as a paradigm shift in global conservation.

Yet, amid the flurry of announcements and diplomacy, persistent tensions revealed that major challenges remain around participation, equity and accountability.

The TFFF proposes to compensate countries for maintaining standing forests, not just for avoiding deforestation.

As reported, the Fund has already secured more than $5.5 billion in initial commitments, including a $3 billion pledge from Norway.

Unlike many past funds, it is not structured purely as a donation vehicle.

Rather, it is set up to generate returns and reward long-term forest conservation.

Critically, at least 20% of its performance-based payments are reserved for indigenous peoples and local communities, whose daily stewardship plays an outsize role in keeping forests intact.

Even as the TFFF proposes this inclusive architecture, many civil society groups have voiced their strong criticism.

The Global Forest Coalition (GFC) described the fund as “colonialistic”, arguing that it benefits intermediaries rather than forest peoples.

Its worry was about a mechanism built around market logic and financial returns that may not address the root structural causes of deforestation, such as agribusiness expansion, oil and mining projects, and large infrastructure, all of which continue to drive forest loss.

According to the GFC, rewarding standing forests without curbing exploitative activities risks creating a superficial conservation narrative.

Compounding this, some critics argue that the payment rate, around $4 a hectare in earlier proposals, is inadequate given the manifold ecosystem services that forests provide.

There is a risk that national governments could absorb most of the funds, while communities on the ground may see little benefit.

The success of the TFFF, therefore, depends not just on its size but on strong delivery mechanisms and rigorous, locally accountable institutions.

Amid these debates, Brazil has taken steps to buttress access.

On the sidelines of COP30, it announced a dedicated digital platform to help forest countries navigate TFFF eligibility.

The platform, developed with partners such as the UNDP, FAO, WWF and the Global Alliance of Territorial Communities (GATC), promises technical assistance, capacity building and peer collaboration.

It is stated that independence from the TFFF’s governing structures is meant to prevent conflict of interest while focusing on inclusion and knowledge sharing.

Land rights remain central to this debate.

Ahead of COP30, the Forest and Climate Leaders’ Partnership (FCLP) renewed its Forest and Land Tenure Pledge, committing $1.8 billion from 2026 to 2030 to support indigenous, local and Afro-descendant communities.

The pledge was a key part of the Belém agenda, reflecting scientific warnings that the Amazon’s future remains at risk without secure land rights.

Civil society groups also stressed that climate justice and nature protection cannot be separated.

Conservation International called COP30 a chance to secure long-term funding for the Amazon, supporting forest protection, community governance and sustainable livelihoods.

They warned that sidelining indigenous leadership weakens both climate action and human rights.

Yet, financing alone cannot counter pressures from infrastructure, agribusiness and extractive industries.

The protests in Belém showed that money means little without real shifts in power.

Without strong accountability, funds risk flowing to intermediaries while local communities continue to face land loss and displacement.

Sushanta Mahapatra teaches Economics at the ICFAI School of Social Sciences, the ICFAI Foundation for Higher Education (IFHE), Hyderabad.

Madan Meher teaches economics at the Amity Business School, Amity University, Chhattisgarh.

The views expressed are personal