A booklet on the Tropical Forests Forever Facility (TFFF), focused on indigenous peoples and local communities, will be launched during the 31st United Nations Climate Change Conference (COP31), hosted by Turkey.

The initiative, led by the Climate and Society Institute (iCS), will be available in Portuguese and English. The goal is to increase understanding of the fund, as developing countries are required to allocate at least 20 percent of the payments received for forest conservation to traditional communities.

These resources are intended to strengthen the autonomy of these communities so they can define and pursue their own development paths. To do so, they must establish representative governance tools and understand the procedures for accessing the payments.

The booklet, says Tatiana Lobão, iCS's manager of change agent engagement and communication, was designed to make a complex financial mechanism more accessible to those operating in indigenous territories.

"We want this information to circulate throughout organizations, networks, and communities, also through printed materials. The information needs to reach people before the rules are finalized, because participating isn't just about being aware of a decision - it's about being able to influence it," Lobão noted.

To ensure the information reaches its target audience, the booklet will be available for free in digital format and will also be distributed in print to organizations and networks working in these communities.

Payment

The document explains that there are two methods for transferring TFFF funds and that each country must choose one of them - receipt through a national structure or through a Global Implementing Agency (GIA).

Under the national modality, countries receive the full TFFF payments and transfer at least 20 percent to a bank account established by a National Steering Committee, which in turn is composed of representatives of indigenous peoples and traditional communities.

In the second modality, 20 percent of the payments flow from the TFFF to a Global Implementing Agency, which then transfers them to the specific bank accounts of the indigenous peoples and traditional communities in each country.

"The success of the TFFF will not be measured solely by the amount of money mobilized internationally, but by the ability to ensure that this funding reaches the territories directly, with less bureaucracy, respect for community autonomy, and real decision-making power over priorities," Tatiana Lobão pointed out.

Fundraising

On Wednesday (11), President Lula announced that the TFFF had raised USD 7.8 billion from various international partners. The goal is to reach up to USD 10 billion by the end of 2026, the amount set for the fund's initial capitalization.

Contributions such as Norway's, for example, are contingent on meeting the target and may be withdrawn. Canada is expected to announce a contribution to the fund at COP31.

The TFFF proposes a change in the way environmental financing works. It does not rely exclusively on donations or individual projects but operates on an investment model. Those who contribute funds see their contributions invested in a diversified portfolio of fixed-income assets in emerging markets that pay higher interest rates.

The surplus profit from this operation goes to countries with tropical forests that demonstrate a reduction in or stabilization of deforestation, with indicative amounts of USD 4 per hectare preserved each year.

In total, the mechanism aims to mobilize USD 125 billion, of which USD 25 billion will come from founding capital and USD 100 billion from institutional investors.

In October 2026, 34 financial institutions and supporting organizations, including Allianz Global Investors and Deutsche Bank, expressed their support for the TFFF, but no actual investment commitments have been made yet.

This article was first published by Agência Brasil.