Germany has committed to contributing €1 billion ($1.15 billion) over the next decade to Brazil’s new global rainforest fund.

Brazilian Environment Minister Marina Silva made the announcement on Wednesday at the UN Climate Change Conference in Belem.

The substantial support from Berlin will go to President Luiz Inacio Lula da Silva’s Tropical Forest Forever Facility (TFFF).

It is a mechanism designed to reward countries for preserving their rainforests and to penalize those that increase deforestation, based on satellite monitoring.

"This is about protecting the tropical rainforests, the lungs of our planet," German Environment Minister Carsten Schneider and Development Minister Reem Alabali Radovan said in a statement. 

What does Brazil hope to achieve with the TFFF?

The South American country estimates the fund could eventually reach $125 billion, distributing around $4 billion annually after an initial ramp-up phase, nearly tripling the current international forest financing. 

Rainforests have been described as the planet’s "green lungs" as they absorb substantial amounts of greenhouse gases.

They also help cool the atmosphere and host vast biodiversity, but face accelerating pressure from agriculture, pasture expansion and mining.

Norway has already pledged $3 billion over 10 years, while Brazil and Indonesia plan to add $1 billion each. 

Founding members of the initiative include Brazil, Colombia, Ghana, the Democratic Republic of Congo, Indonesia and Malaysia. 

The TFFF will be overseen by an 18-member board split evenly between rainforest nations and donor countries, with the World Bank initially serving as trustee.

Up to 70 developing countries could benefit from the fund, with recipients free to decide how to use the money if at least 20% goes to Indigenous peoples and traditional communities. 

At its official launch in early November, 53 countries — including 19 potential investor states — had already expressed support.

Brazil hopes wealthy countries will commit an initial $25 billion, with a further $100 billion expected from private-sector sources. Under the rules of the fund, investments linked to fossil fuels are excluded.

Edited by Sean Sinico