A new global fund meant to reward tropical countries for protecting forests could instead drive deforestation and deepen debt in the developing world, civil society groups warn. The Tropical Forests Forever Facility (TFFF), launched Nov. 6 in Belém, Brazil, ahead of the U.N. Climate Change Conference, aims to raise $125 billion and promises to pay countries up to $4 per hectare ($1.62 per acre) of standing forest each year. More than $5.5 billion has been pledged so far, and the plan is officially supported by more than 50 nations, including countries making up the Amazon, Congo and Borneo basins. The fund mandates that at least 20% of the payments to each country must be allocated to Indigenous and local communities. But more than 50 Indigenous and other civil society organizations from Latin America and the Caribbean argue the TFFF will make developing countries absorb the risks for the investments, while generous returns are guaranteed for investors and financial intermediaries. The TFFF seeks to raise its initial $125 billion capital from wealthy countries and institutional and private investors. It aims to invest this in a diversified portfolio, mostly consisting of high-interest bonds issued by emerging markets and developing economies. Any profits generated are distributed first to private investors, then the sponsor countries. What remains is transferred to tropical forest countries that meet the deforestation criteria. If the fund performs poorly financially, the price per hectare is reduced, even if environmental goals are met. “In other words, it is ultimately the taxpayers…This article was originally published on Mongabay

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