Haddad says he expects US$10 billion for a forest protection fund.
According to the minister, the goal should be achieved by the end of next year.
By Elaine Patrícia Cruz, reporter for Agência Brasil - Finance Minister Fernando Haddad said on Monday (3), in São Paulo, that Brazil has set a target of attracting US$10 billion in public investments from countries to the Tropical Forest Fund (TFFF). The mechanism is aimed at protecting forests and provides that countries that preserve their tropical forests will be financially rewarded via a global investment fund.
According to Haddad, this goal should be achieved by the end of next year, still during Brazil's presidency of the United Nations Climate Change Conference (Conference of the Parties). According to the minister, this amount would refer to resources allocated by governments, with the potential for growth through the participation of other types of entities, such as foundations, funds, and companies.
"If we finish the first year with US$10 billion in public funds, it would be a great achievement," the minister told reporters after participating in a series of meetings at the event. COP30 Business & Finance Forum, promoted by Bloomberg Philanthropies, in the city of São Paulo.
“And to reach US$10 billion, it would only take a few G20 countries joining for us to start compensating countries that maintain tropical forests, especially those that are indebted, because they don't have the resources to maintain their forests. And the TFF would support this initiative,” he added.
Haddad admitted that this is an "ambitious" proposal but, according to him, achievable. "I believe we will get there," he said.
The minister said he was optimistic about the approval of this proposal. "I believe that, of the original ideas that have emerged in recent years, the TFF is the one most likely to succeed. There's another very large one, the carbon market coalition, but that will require a lot of engineering to get off the ground," he said.
The government's ultimate goal is for the fund to raise US$125 billion, with 20% (US$25 billion) from sovereign countries and 80% (US$100 billion) from private capital.
COP30
In an interview with journalists, the minister said that, in this first round of negotiations, held in São Paulo and attended by investors and financiers, there were "concrete signs that some ideas can begin to move from paper to reality." According to him, the meetings held today with investors and financiers indicate a willingness to make the COP in Brazil a landmark event.
"From what I heard today from investors and financiers, there is a greater willingness to get this train moving faster. So, I believe we're going to have a great COP," the minister said. "We already have some countries signaling announcements during the COP," he added.
According to the minister, Brazil has been leading a very important debate in the world on the issue of sustainability.
“Not only at COP, but also at the G20, we have been leading the debate on sustainability. This is evidenced by the fact that, for the first time, we have a club of finance ministers participating in COP and submitting a report. This is already a result of the work that has been done at the G20,” he said. “Brazil wanted to make this COP a pragmatic and proactive one,” he emphasized.
