Lula’s Rainforest Fund Secures $5.5B, Prioritizing Indigenous Stewards

Brazil’s President Luiz Inácio Lula da Silva’s ambitious plan to save tropical rainforests is already attracting significant capital, with $5.5 billion in pledges announced at the Belem climate summit. The “Tropical Forests Forever Facility” is a new proposal to financially reward 74 developing countries for keeping their forests standing.
A standout feature of the fund is its explicit recognition of forest guardians. The rules mandate that 20 percent of the money must go to Indigenous peoples. This move acknowledges the millennia-long role these communities have played in managing and preserving lands, and a large presence of tribes is expected at the talks.
The fund, which has already received a $3 billion pledge from Norway, operates on a novel model. Instead of relying on donations, it will be financed by interest-bearing debt from wealthier nations and commercial investors, aiming to make conservation an economically superior choice to deforestation.
The talks are being held in the Amazonian city of Belem, a location that puts the urgency of the climate crisis in sharp focus. Brazil is arguing that while logging and ranching offer short-term profits, preserving these carbon-absorbing forests provides far richer, long-term rewards for the entire planet.
The summit’s progress, however, is being tested by global divisions. The leaders of the three biggest polluters—the US, China, and India—were absent from the preliminary gathering, prompting sharp criticism from the UN Secretary-General about a “moral failure” in climate leadership.