Linklaters advises on this year’s flagship COP30 Tropical Forest Forever Facility initiative

Linklaters has advised on the structuring of the $125bn Tropical Forest Forever Facility (TFFF)’s investment arm, an unprecedented initiative spearheaded by the Government of Brazil, President of COP30, working in cooperation with, among others, The World Bank. The TFFF, which Brazil launched at COP30 after making a foundational $1 billion commitment at the United Nations, is a once-in-a-generation initiative that seeks to secure the future of tropical forests via an innovative financing mechanism.

The TFFF will operate by mobilising public, philanthropic and private capital and reinvesting such funds in a diversified investment portfolio. Revenues generated by the TFFF will reward tropical forest countries a fixed amount per hectare of conserved or restored forest while seeking to maintain the TFFF’s capital base, ensuring the facility’s long-term sustainability; a portion of such payments will be directed to Indigenous Peoples and local communities in those countries.

The Linklaters team is led by Structured Climate Finance Partner and Financial Times Innovative Lawyers for Sustainable Finance 2024 Award winner Alex Shopov, Blended Finance Funds Partner and Green Ambassador Martin Mager, Partners, Melinda Perera, Nicki Kayser, Joakim-Antoine Charvet, Derek Poon and John Hwang and Managing Associate Mark Watts.

Andy Vickery, Global Head of Finance at Linklaters, commented:

“We are proud to support this transformative initiative. The Tropical Forest Forever Facility sets a new benchmark for innovative, large-scale climate finance, and demonstrates the power of collaborative legal and financial structuring in tackling urgent global challenges.”

Alex Shopov, Partner at Linklaters, added:

“Working alongside the Government of Brazil, The World Bank and their expert advisory working group has been a privilege. Together, we have developed a robust and pioneering investment structure that will drive real impact for tropical forest protection around the world.”

Martin Mager, Partner at Linklaters, added:

“The landmark Tropical Forest Forever Facility led by the Government of Brazil exemplifies the potential of blended finance to unlock unprecedented resources for the preservation of tropical forests around the world at scale.”