COP30: Creating a forest economy

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As COP30 enters its final week in Belém, Brazil, the focus is whether this “Nature COP” can truly deliver for the planet’s ecosystems. From the outset, COP30 has been branded the summit to put nature on the centre stage. With the Amazon rainforest as the dramatic backdrop, delegates this past weekend would have had a first-hand glimpse at the natural riches surrounding the conference. The setting has no doubt amplified the message that climate action cannot succeed without nature at its heart. 

Notably, a landmark achievement in defence of nature has been made. The Tropical Forest Forever Facility (TFFF) was launched as a finance mechanism designed to reward countries for keeping their forests intact. More than 53 countries have endorsed the initiative, which aims to pay for ecosystem services and support Indigenous stewardship. The fund has already secured over $5.5 billion in pledges, with significant contributions from Norway, Brazil and Indonesia. Recognising the vital role of Indigenous populations in conservation, 20% of TFFF payments will go directly to their local communities.

But getting the TFFF over the line has not been without challenges. The UK decided not to contribute ahead of the Chancellor’s Budget, which disappointed the Brazilian hosts, especially as the initiative was originally developed with UK input. But there’s hope that the UK may reconsider at a later date.

On other nature developments, Brazil's ‘Bioeconomy Challenge’ aims to scale sustainable investment in nature, helping create markets for sustainable forest products, biotechnology and regenerative practices. It links Indigenous knowledge with innovation, turning forests into engines of inclusive growth rather than obstacles to development.

Add to this the Forest Finance Roadmap, launched in September, which outlines six levers to close the $66.8 billion annual gap in forest protection funding. These include scaling jurisdictional REDD+ programmes, expanding high-integrity carbon markets, and leveraging debt-for-nature swaps. 

Together, these measures redefine forests as part of a real economy - complete with financial flows, governance frameworks, and market incentives that reward conservation. COP30’s approach is to move beyond pledges and create a system where forest stewardship generates economic returns, aligning climate goals with livelihoods and investment strategies. If implemented effectively, the emergence of a global forest economy will be a cornerstone of climate resilience and sustainable development.

But for all of the achievements, challenges remain. There is a threat to the long-standing deforestation ban known as the Amazon Soy Moratorium, which prohibits the sale of soya grown on land cleared after 2008. While this ban has been widely credited with curbing deforestation in the Amazon and is considered a global environmental success story, powerful farming interests supported by some Brazilian politicians are pushing to overturn the restriction at COP this week. Critics of the ban argue it unfairly benefits a small group of companies, while environmental groups warn that lifting it would be disastrous, potentially triggering a new wave of land grabbing and deforestation for soya cultivation.

The efficacy of the COP gatherings and their impact will be a point of constant debate, and this year is no different. With the Amazon at the centre of this year’s summit, COP30 has no doubt reinforced that protecting nature is a crucial part of the sustainability equation and established nature and forests as a core part of the COP programme that will hopefully continue in future years. Regardless of where you stand on the debate, this year’s COP has sown the seeds of a ‘forest economy’.