Why in the News?
At the Leaders’ Summit in Belem, Brazil, preceding the COP30, India has announced its decision to join the Tropical Forest Forever Facility (TFFF) as an Observer.
About Tropical Forest Forever Facility (TFFF):
- What is it: A global blended-finance mechanism rewarding Tropical Forest Countries (TFCs) for conserving intact forests through annual conservation-linked payments.
- Payment Design: Provides $4 per hectare annually for protected forest area, with deductions for deforestation or ecosystem degradation verified via satellite data.
- Institutional Setup: Managed by a TFFF Secretariat (policy and oversight) and a Tropical Forest Investment Fund (TFIF) (financial operations and investment management).
- Investment Model: The TFIF channels sponsor contributions into sovereign, corporate, green, and blue bonds, explicitly excluding fossil fuel industries.
- Community Allocation: 20% of total payments earmarked for Indigenous Peoples and Local Communities (IPLCs) to support sustainable livelihoods and rights-based forest governance.
- Monitoring Mechanism: Conservation outcomes tracked via satellite and third-party verification systems ensuring full transparency and performance-based accountability.
- Financial Sustainability: Operates as a budget-neutral model, where investment returns fund long-term conservation payments rather than temporary grants.
- Initial Pledges: Founding commitments include Brazil ($1 bn), Indonesia ($1 bn), Norway ($3 bn over 10 years), Colombia ($250 mn), Netherlands ($5 mn), Portugal (€1 mn); France, China, and UAE have expressed political support.
Relation to REDD+ Framework:
- REDD+ Genesis: Launched in 2008 under the UNFCCC, REDD+ stands for Reducing Emissions from Deforestation and Forest Degradation Plus, providing result-based payments for verified emission reductions.
- Core Difference: While REDD+ rewards verified carbon reductions, TFFF offers annual standing forest payments, maintaining steady conservation incentives.
- Approach: REDD+ focuses on carbon metrics and offset markets, whereas TFFF bypasses carbon dependency, offering investment-backed, non-offset finance.
- Objectives Alignment: Both aim to promote sustainable forest management, biodiversity conservation, and enhanced carbon stock in developing nations.
- Institutional Partners: REDD+ is jointly administered by FAO, UNDP, UNEP, and implemented in 65+ countries; TFFF aligns with these frameworks through transparency and inclusivity principles.
- Added Value: TFFF strengthens long-term financial resilience of conservation efforts by combining public and private investments with community-centric benefit-sharing.
India’s Role and Climate Record:
- Emission Reduction Record: From 2005–2020, India cut emission intensity by 36%, achieving 50% non-fossil installed power capacity ahead of 2030 goals.
- Carbon Sink Achievement: Between 2005–2021, India added 2.29 billion tonnes CO₂ equivalent through expanded forest and tree cover.
- NDC Commitments: India’s updated Nationally Determined Contribution (to 2035) targets deeper emission cuts and enhanced carbon sink creation.
- Strategic Importance: Strengthens South–South cooperation and India’s advocacy for equitable climate responsibility within global negotiations.
| [UPSC 2025] Which one of the following launched the ‘Nature Solutions Finance Hub for Asia and the Pacific’?
(a) The Asian Development Bank (ADB)* (b) The Asian Infrastructure Investment Bank (AIIB) (c) The New Development Bank (NDB) (d) The International Bank for Reconstruction and Development (IBRD) |
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