A bold new investment fund aims to channel billions into tropical forest protection – one key change can make it better – The Conversation

Report on Global Deforestation and the Tropical Forest Forever Facility Initiative

Executive Summary: Aligning Forest Conservation with the Sustainable Development Goals

Global deforestation continues at an alarming rate, directly undermining the achievement of the Sustainable Development Goals (SDGs), particularly SDG 15 (Life on Land) and SDG 13 (Climate Action). In 2024 alone, over 20 million acres of forest were lost, driven primarily by economic activities that conflict with SDG 12 (Responsible Consumption and Production). While past conservation efforts have yielded limited success, a new financial mechanism, the Tropical Forest Forever Facility (TFFF), has been launched to address the scale of the problem. This report analyzes the deforestation crisis through the lens of the SDGs and evaluates the TFFF’s potential as a tool for achieving global sustainability targets, emphasizing the need for robust partnerships and inclusive governance as outlined in SDG 17 (Partnerships for the Goals) and SDG 16 (Peace, Justice and Strong Institutions).

The Deforestation Crisis: A Direct Threat to the 2030 Agenda

Impact on SDG 15 (Life on Land) and SDG 13 (Climate Action)

The continued loss of tropical forests represents a significant failure to meet key international commitments. The consequences directly impede progress on several SDGs.

• Ecosystem Degradation (SDG 15): The loss of 6.7 million hectares of tropical forest in 2024 alone severely compromises the goal to protect, restore, and promote the sustainable use of terrestrial ecosystems. Forests are vital for regulating rainfall and sheltering a majority of the planet’s terrestrial plant and animal species.
• Climate Change Acceleration (SDG 13): Forests serve as critical carbon sinks. Deforestation and forest degradation are responsible for approximately 11% of total greenhouse gas emissions, actively working against global efforts to take urgent action to combat climate change.

Economic Drivers and Insufficient Countermeasures

The primary drivers of deforestation are economic, highlighting a systemic conflict with the principles of sustainable development.

1. Unsustainable Production (SDG 12): Global demand for commodities such as agricultural crops, cattle, and minerals provides powerful financial incentives for forest clearing.
2. Financial Imbalance: The approximately US$5.7 billion committed annually to forest protection is dwarfed by the tens of billions invested by financial institutions into companies driving deforestation. This disparity demonstrates a lack of coherence between economic policy and sustainability goals.
3. Limitations of Existing Programs: Previous efforts, including law enforcement and payments for ecosystem services, have proven insufficient. Their success is often temporary and dependent on sustained political will and long-term funding, failing to address the root economic drivers.

The Tropical Forest Forever Facility (TFFF): A New Model for SDG 17

Mechanism and Objectives

Launched by Brazil, the TFFF is an innovative financial instrument designed to mobilize resources at a scale capable of countering the economic drivers of deforestation. Its structure is intended to advance multiple SDGs simultaneously.

• A Global Partnership (SDG 17): The TFFF seeks to raise an initial $25 billion from governments and an additional $100 billion from private investors, creating a multi-stakeholder partnership to finance sustainable development.
• Results-Based Finance for SDG 15: The facility will compensate entire countries based on verified results in reducing deforestation, thereby influencing national policies and promoting the conservation of terrestrial ecosystems.
• Supporting Local Communities (SDG 10): The TFFF mandates that at least 20% of payments directly support local communities and Indigenous peoples, acknowledging their critical role in forest stewardship and contributing to the goal of reducing inequalities.

International Support and Initial Commitments

The TFFF has gained early momentum, signaling strong international will to advance this new model of climate and forest finance.

• Brazil: $1 billion
• Indonesia: $1 billion
• Norway: $3 billion

Further commitments are anticipated during the COP30 climate conference, reinforcing the facility’s role as a key implementation vehicle for global environmental agreements.

Recommendations for Maximizing SDG Impact

Strengthening Governance and Inclusivity for SDG 16

To ensure the TFFF’s long-term success and alignment with the 2030 Agenda, its implementation must be inclusive and robust. Criticisms have been raised regarding its reliance on investment returns and the potential for funds to be centralized at the national level.

1. Incorporate Sub-national Governments: A significant portion of policy implementation and enforcement occurs at the state and provincial levels. To strengthen institutions (SDG 16), these entities must be included in decisions regarding the allocation and use of TFFF payments.
2. Enhance Local Engagement (SDG 10): Connecting the TFFF with frameworks like the Governors’ Climate and Forests Task Force’s “Blueprint for a New Forest Economy” can ensure that funding effectively reaches on-the-ground projects managed by local and Indigenous communities.
3. Ensure Financial Stability: Mechanisms should be explored to mitigate the risks associated with market volatility to ensure a consistent flow of payments to forest-dependent communities and conservation programs.

By coordinating with state governments, local communities, and other stakeholders, the TFFF can move beyond a top-down financial mechanism to become a truly transformative partnership for achieving the Sustainable Development Goals.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article on deforestation and the Tropical Forest Forever Facility (TFFF) directly addresses and connects to several Sustainable Development Goals (SDGs). The primary focus is on environmental protection, climate action, and the partnerships required to achieve these goals.

• SDG 15: Life on Land: This is the most central SDG discussed. The entire article revolves around the issue of deforestation, the loss of terrestrial ecosystems, and efforts to protect, restore, and promote the sustainable use of forests. It explicitly mentions the loss of “vast swaths of forests,” the importance of these ecosystems for sheltering “plant and animal species,” and initiatives aimed at reversing forest loss.
• SDG 13: Climate Action: The article establishes a direct link between deforestation and climate change. It states that forests “act as a thermostat for the planet by storing carbon” and that “deforestation and forest degradation globally contribute about 11% of total greenhouse gas emissions.” The TFFF is presented as a climate mitigation strategy.
• SDG 17: Partnerships for the Goals: The article highlights the collaborative nature of efforts to combat deforestation. It describes the TFFF as a multi-stakeholder partnership involving national governments (Brazil, Indonesia, Norway), private investors, and foundations. It also mentions the role of organizations like the Governors’ Climate and Forests Task Force, emphasizing the need for cooperation between national, state, and local entities.
• SDG 8: Decent Work and Economic Growth: The article touches upon the economic drivers of deforestation, such as “global demand for crops, cattle and minerals.” It also discusses alternative economic models that decouple growth from environmental degradation, such as “payments for ecosystem services” and planting trees that “bring additional economic value to communities by providing fruits and nuts.”

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the issues and solutions presented, several specific SDG targets can be identified:

1. Under SDG 15 (Life on Land):
   • Target 15.2: “By 2020, promote the implementation of sustainable management of all types of forests, halt deforestation, restore degraded forests and substantially increase afforestation and reforestation globally.” The article’s core theme is halting deforestation, with initiatives like the TFFF designed to provide financial incentives for this purpose. It also mentions efforts to “restore land that has already been cleared” by “planting native tree species.”
   • Target 15.5: “Take urgent and significant action to reduce the degradation of natural habitats, halt the loss of biodiversity…” The article notes that tropical forests “shelter plant and animal species,” directly linking the fight against deforestation to the preservation of biodiversity.
   • Target 15.b: “Mobilize significant resources from all sources and at all levels to finance sustainable forest management…” The TFFF is a clear example of this target in action, aiming to raise “$125 billion” from governments, foundations, and private investors to fund forest protection.
2. Under SDG 13 (Climate Action):
   • Target 13.2: “Integrate climate change measures into national policies, strategies and planning.” The TFFF is a large-scale financial strategy designed to influence “national policies that currently contribute to deforestation” and is presented as a key initiative ahead of the U.N. climate conference (COP30).
3. Under SDG 17 (Partnerships for the Goals):
   • Target 17.3: “Mobilize additional financial resources for developing countries from multiple sources.” The TFFF model is explicitly designed to mobilize funds from “countries and private investors” to compensate tropical forest countries for conservation efforts.
   • Target 17.17: “Encourage and promote effective public, public-private and civil society partnerships…” The article describes the TFFF as a public-private partnership. It also emphasizes the importance of including civil society, noting the fund’s requirement to ensure “at least 20% directly supports local communities and Indigenous peoples.”

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article mentions several quantitative and qualitative indicators that can be used to measure progress.

• Rate of Deforestation: This is a direct indicator for SDG Target 15.2. The article provides specific figures, such as the loss of “more than 20 million acres in 2024” and the success in Brazil where the “deforestation rate there fell by 31% from 2023 to 2024.” This metric is used to evaluate the success or failure of conservation policies.
• Greenhouse Gas Emissions from Land Use Change: This is an indicator for SDG Target 13.2. The article states that deforestation contributes “about 11% of total greenhouse gas emissions.” Measuring the reduction in emissions from the forest sector would be a key indicator of the success of initiatives like the TFFF.
• Financial Flows for Conservation: This serves as an indicator for SDG Targets 15.b and 17.3. The article quantifies the financial scale of the problem and the proposed solution. It mentions the current “$5.7 billion per year” for protection and the TFFF’s goal to raise “$125 billion.” Tracking the commitments and disbursements from this fund (e.g., “$1 billion” from Brazil, “$3 billion” from Norway) is a direct measure of mobilized resources.
• Funds Directed to Local and Indigenous Communities: This is an indicator for Target 17.17 and the inclusivity of partnerships. The article specifies that the TFFF is expected to ensure “at least 20% directly supports local communities and Indigenous peoples.” Measuring the actual percentage of funds reaching these groups would be a crucial indicator of the program’s equity and effectiveness on the ground.

4. Summary Table of SDGs, Targets, and Indicators

Source: theconversation.com