CALI, Colombia — The hunger for new, reliable forms of finance to save biodiverse forests in developing tropical countries was palpable here at a jam-packed event during the COP16 United Nations biodiversity summit, on Monday, October 28. Known as the TFFF, the Tropical Forest Forever Facility, this innovative new fund is feeding that appetite for results. It is a novel funding mechanism in conservation, though similar to how banks operate as lenders. The hope is that the mechanism will initially attract $125 billion from nations and investors (more if the demand is there), with the principle paying a return on investment over a 20-year period. An average investment performance of 5.5% annually is expected to deliver $4 billion year after year to incentivize tropical countries to keep their native forests intact, tree by tree. The idea: Treat trees as valued shareholders, according to one report. And some say it’s about time, since biodiverse forests daily provide the world with essential services ranging from water purification and storage to weather moderation, fish and wildlife habitat, and, importantly, carbon sequestration — without ever sending humanity a single invoice. “This is an idea that came from the country of Brazil and which Colombia supported from Day 1. That’s because it is a way of valuing nature without turning it into a commodity,” said Susana Muhamad, COP16 president and Colombia’s minister of the environment. Her presence at the October 28 event signaled the seriousness with which the launch of TFFF is being regarded. This…This article was originally published on Mongabay
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