Brazil’s President Luiz Inácio Lula da Silva is positioning himself as a global climate leader, proposing a sweeping “Green Deal” for the planet’s forests. At the Belem summit, he unveiled the “Tropical Forests Forever Facility,” a $5.5 billion plan to halt deforestation in 74 developing countries.
Lula’s ambition is to fundamentally change the economics of conservation. His proposal, financed by loans from wealthy nations and investors, is designed to make it more profitable for governments to protect their trees than to cut them down.
This is a direct response to the “unmet promises” of previous summits. Instead of relying on donations, Lula’s debt-based model aims to create a sustainable and massive flow of capital dedicated to protecting the vital carbon sinks of the tropics.
Held in the symbolic heart of the Amazon, the summit has already seen a major $3 billion pledge from Norway, with Germany expected to follow. This gives tangible financial weight to Lula’s leadership on the world stage.
A key part of Lula’s vision is climate justice. The fund’s rules mandate that 20 percent of the money goes to Indigenous peoples, recognizing them as essential partners. This comes as Lula tries to build consensus, despite the absence of leaders from the US, China, and India.