Brazil's announcement came during a summit with other South American nations. It remains unclear how large the fund will be and whether Lula will give up fossil fuels.
Brazil intends to propose an "enormous" fund to pay for the conservation of tropical forests at the United Nations climate change summit, Cop28, which is set to begin in Dubai in a matter of days. The announcement was made by Andre Correa do Lago, Brazil's chief climate diplomat. The fund would involve 80 countries around the world, do Lago specified, adding that Brazil is open to suggestions from the other nations involved.
Last year, during the Cop negotiations, the establishment of a fund dedicated to biodiversity and another to compensate for damage caused by climate change had already been announced. A fund dedicated to forest conservation based on new counting mechanisms, however, had not yet been proposed.
A fund to channel resources from wealthier countries towards poorer ones, which struggle to financially sustain their own environmental efforts — including the conservation of natural habitats — is a proposal very much in keeping with the central theme of Cop28: namely, compensation for damages from the global north towards countries in the south as a result of the climate crisis.
Brazil is the country with the largest rainforest in the world, and approximately 60 per cent of the Amazon rainforest lies within its national territory — a forest considered vital for containing the effects of global warming and protecting unique animal and plant species.
According to Reuters, the Brazilian climate envoy's proposal does not yet specify the financial capacity — that is, how much money is actually involved — while the government has announced its intention to invest 120 billion dollars over 10 years to expand cultivated land without deforestation. What is known is that the fund would not assess forest conservation in terms of CO2 stocks, as existing schemes do; instead, according to Correa do Lago, the value would be tied to forest area measured in hectares.
The international forest conservation proposal will be accompanied by a national programme to reforest destroyed areas. The national development bank Banco nacional de desenvolvimento econômico e social (Bndes) will oversee the development of the fund.
Shortly after his election, President Luiz Inacio Lula da Silva, at last year's United Nations climate summit Cop27, had announced that "the Brazil is back" — meaning that the country had returned to being an international environmental leader.
As Correa do Lago specified, at this Cop, Lula will need to update those present on the progress Brazil is making on various environmental fronts, including the reduction of Amazon deforestation over the past 12 months. According to the climate envoy, the deforestation rate has reached its lowest levels since 2018.
Brazil, together with the other eight Amazonian countries in which the Amazon is located, is also discussing a proposal for a joint commitment to end deforestation by 2030, a target already endorsed by Brazil alongside other countries of the world with regard to forests in general. Correa do Lago said the proposal is progressing, but did not say whether the agreement could be announced at Cop28.
It is positive that new agreements on deforestation are being discussed. But those reached so far have proved to be still too weak. Moreover, neither Lula nor do Lago have stated what Brazil's policies are in terms of reducing fossil fuel use and whether these will be phased out in the future. The Cop about to begin in Dubai needs to set ambitious targets: it remains to be seen whether any of these will involve Brazil.