World leaders launch fund to save forests, get first $5 billion

World leaders attending a climate summit in Brazil launched a fund Thursday to save the world’s forests, quickly raking in over $5 billion in pledges to reward tropical countries for not chopping down trees.

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The initial government commitments still fall far short of what is needed for the fund to attract the private investment it seeks, but Brazil's President Luiz Inacio Lula da Silva still described the Tropical Forests Forever Facility (TFFF) as unprecedented.

Ultimately, Brazil -- the fund’s political sponsor -- seeks to create a $125 billion facility that would pay out a share of profits to developing countries for every hectare of forest they leave standing.

Private investors would also receive a return from funds invested mainly in emerging market bonds.

"Such a fund, which will help us, comes at the right time," Abe Assamoi, an Ivory Coast representative, told AFP in Belem, a city at the edge of the Amazon rainforest.

"We have certainly lost a lot of forests, but we have implemented a comprehensive strategy to reforest our country... We have ambitious goals," but these require money, he added.

The fund was launched in Belem Thursday as heads of state and government met ahead of an annual round of UN climate talks starting next week.

‘Things can change’