The Netherlands intends to invest up to $500 million in the Tropical Forest Forever Facility (TFFF) over 10 years, bringing total announced contributions to $7.8 billion and closer to the fund’s $10 bln target for the end of this year.

As part of a broader effort to strengthen its role in international climate finance, the Dutch government outlined the proposed contribution in a letter to parliament, which still needs to approve it.

“The official announcement will be made by our prime minister during COP31 [in Antalya],” Paul van de Logt, head of the climate team at the Ministry of Foreign Affairs, said at a Brazil-led event at the UN biodiversity COP17 in Yerevan.

The investment remains subject to conditions that are yet to be finalised. These include whether the contribution qualifies as official development assistance (ODA), the robustness of the fund structure, the phasing of the contribution, and the terms under which it could be made.

Norway and Brazil, the TFFF’s co-chairs, are seeking to reach the $10 bln threshold set as a condition for Norway’s money to be disbursed. Contributions announced by Brazil, Indonesia, Norway, Germany, France, Luxembourg, the UK, and the Netherlands bring the total to $7.8 bln.

“It is not an open invitation. Pressure is on,” Van de Logt said.

Nicolas Gundlach, senior policy officer for climate finance at Germany’s Federal Ministry of Economic Cooperation and Development, described the recent pledges as “an important signal of international cooperation in difficult geopolitical times”.

“But we need more countries to join. … Let me say to all potential contributors here today: we would very much welcome your financial participation. Your contribution can help attract additional private capital and really build a lasting source of finance for tropical forests,” he said.

Read more: INTERVIEW: TFFF races to secure remaining $3.2 bln for year-end commitment as backers refine investment model

PRIVATE INVESTORS

Van de Logt also said institutional investors show growing interest in the TFFF.

“We were knocking on their door for 10 years, now they came knocking at our door,” he said, referring to a statement issued by nearly 30 investors in Rotterdam urging governments to support the fund. He said investors had made it clear that they wanted the initiative to go ahead.

The announcement was met with rounds of applause during the event, where some speakers also congratulated Brazil on Sunday’s election, which returned President Luiz Inacio Lula da Silva to office for a fourth term.

“Let me start out by giving a big, big shout out to Brazil for having the courage in Belem [during climate COP30] to make this political announcement,” UN Environment Programme Chief Inger Andersen said, referring to the TFFF.

Merijn van Leeuwen, director of nature conservation at WWF-Netherlands, said more countries would need to join the initiative, adding that companies and other investors would also be needed to ensure the fund reaches the scale required.

The TFFF aims to establish a permanent endowment of $125 bln, including $100 bln from private investors.

By Ilana Cardial in Yerevan – [email protected]