New $5.5B Forest Fund Includes 20% Mandate for Indigenous Peoples

A groundbreaking 20 percent mandate for Indigenous peoples is a key feature of the new $5.5 billion “Tropical Forests Forever Facility” being discussed in Brazil. This provision, central to President Lula da Silva’s proposal, ensures that the original guardians of the forests are direct partners and beneficiaries.
The fund, announced at the Belem climate summit, aims to pay 74 developing countries to stop deforestation. The 20 percent allocation for Indigenous communities recognizes their millennia-long success in preserving these vital ecosystems.
The fund itself is a major financial innovation. It’s not based on aid, but on interest-bearing debt from wealthy nations and commercial investors. This model is designed to create a sustainable and powerful economic incentive to keep trees standing.
The proposal has already gained significant backing, with Norway pledging $3 billion. Germany is expected to add to the total, which has reached $5.5 billion so far.
This positive step toward an equitable and financially-driven solution comes at a difficult time. The UN chief has warned of “deadly negligence” on climate, and the troubling absence of leaders from the US, China, and India highlights a lack of global unity.