{"id":64813,"date":"2025-09-23T13:27:48","date_gmt":"2025-09-23T07:57:48","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=64813"},"modified":"2025-09-23T14:40:00","modified_gmt":"2025-09-23T09:10:00","slug":"tropical-forests-forever-facility","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/tropical-forests-forever-facility\/","title":{"rendered":"Tropical Forests Forever Facility"},"content":{"rendered":"<h2><b>Tropical Forests Forever Facility Latest News<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Brazil will become the first country to announce an investment in the Tropical Forests Forever Facility.<\/span><\/p>\n<h2><b>About Tropical Forests Forever Facility<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It is an <\/span><b>innovative <\/b><span style=\"font-weight: 400;\">multilateral<\/span><b> global permanent fund<\/b><span style=\"font-weight: 400;\"> dedicated to supporting <\/span><b>tropical forest conservation over the long-term.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It is a global initiative <\/span><b>led by the Government of Brazil.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The idea for the fund was presented by the Brazilian government in 2023, <\/span><b>at <a href=\"https:\/\/vajiramandravi.com\/current-affairs\/cop28-final-outcome\/\" target=\"_blank\">COP28<\/a> in the United Arab Emirates.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Goal:<\/b><span style=\"font-weight: 400;\"> The TFFF is a blended finance structure that <\/span><b>seeks to mobilize US$125 billion<\/b><span style=\"font-weight: 400;\"> in capital from <\/span><b>public and private sector sources.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The fund would invest the money into a diversified portfolio that generates a return that is higher than its cost of capital.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This would be used to pay the <\/span><b>tropical forest countries<\/b><span style=\"font-weight: 400;\"> (TFC) a fixed amount of <\/span><b>money per hectare of standing forest.<\/b><\/li>\n<\/ul>\n<h2><b>Financial Mechanism of Tropical Forests Forever Facility<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It aims to raise capital from two main sources, <\/span><b>sponsors and market investors<\/b><span style=\"font-weight: 400;\"> through financial markets by <\/span><b>issuing debt instruments such as bonds.<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Sponsors:<\/b><span style=\"font-weight: 400;\"> Sponsors would be the \u2018<\/span><b>high income\u2019 countries<\/b><span style=\"font-weight: 400;\"> as classified by the World Bank, along with philanthropies. (account for <\/span><b>20 per cent<\/b><span style=\"font-weight: 400;\"> of the total corpus)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Market Investors:<\/b><span style=\"font-weight: 400;\"> Institutional investors, sovereign wealth funds, and endowments (account for <\/span><b>80 per cent<\/b><span style=\"font-weight: 400;\"> of the total corpus)<\/span> <span style=\"font-weight: 400;\">investing through debt instruments.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Fund Management:<\/b><span style=\"font-weight: 400;\"> Funds are managed via a <\/span><b>Multilateral Development Bank<\/b><span style=\"font-weight: 400;\"> (MDB), e.g., World Bank.<\/span><\/li>\n<\/ul>\n<p><b>Source: <\/b><strong><a href=\"https:\/\/ddnews.gov.in\/en\/brazil-will-be-first-to-invest-in-global-forest-fund\/\" target=\"_blank\" rel=\"nofollow noopener\">DD News<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tropical Forests Forever Facility is an innovative multilateral global permanent fund dedicated to supporting tropical forest conservation over the long-term. Read more about Tropical Forests Forever Facility, Goal, Financial Mechanism, Latest News.<\/p>\n","protected":false},"author":24,"featured_media":64798,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[21,2849,22,23],"class_list":{"0":"post-64813","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"tag-prelims-pointers","9":"tag-tropical-forests-forever-facility","10":"tag-upsc-current-affairs","11":"tag-upsc-prelims-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/64813","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=64813"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/64813\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/64798"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=64813"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=64813"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=64813"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}