By Muhammad Amaan
Thirty-four governments have launched a comprehensive Forest Finance Roadmap during Climate Week New York City, addressing a critical $66.8 billion annual funding gap needed to protect tropical forests and achieve global climate objectives by 2030.
The Forest & Climate Leaders’ Partnership (FCLP), in collaboration with Brazil and the United Nations Environment Programme (UNEP), unveiled the roadmap on September 23, 2025, marking the first coordinated effort between Global North and Global South nations to unlock and coordinate forest financing at scale.
UNEP analysis released alongside the roadmap reveals the stark reality of current forest financing shortfalls in tropical countries, where existing flows fall dramatically short of requirements to halt and reverse forest loss as committed under the COP26 Glasgow Leaders’ Declaration.
The six-point action framework targets multiple financing mechanisms designed to generate substantial annual revenue streams by 2030.
Jurisdictional forest credits could deliver $3-6 billion annually through voluntary and compliance markets, while the proposed Tropical Forests Forever Facility aims to generate up to $4 billion yearly through long-term payments for standing forests.
UK Climate Minister Katie White emphasized the urgency of coordinated action, stating that “forests are the lifeblood of our planet – supporting food security, tackling climate change and protecting biodiversity.”
The framework aligns global efforts to unlock finance at scale ahead of COP30 in Brazil.
The roadmap demonstrates how strategic financial mechanisms can mobilize private investment across the forest bioeconomy.
Public and concessional finance totaling $5 billion could unlock $15 billion annually for sustainable forest enterprises, while redirected supply chain finance aligned with forest goals could generate an additional $10 billion yearly.
Guyana’s Minister of Natural Resources, Vickram Bharrat, highlighted the importance of reliable financing for forest communities, stating that “if we want forests to stay standing, finance must be reliable and fair, so that communities and countries can make choices for the long term.”
Several innovative fiscal mechanisms featured in the roadmap could generate significant funding through policy alignment.
Shifting modest portions of subsidy structures and national budgets toward land and forest objectives could unlock $8 billion, while redirecting just 1% of current sovereign debt service payments toward forest investments could generate $4.9 billion annually.
The framework showcases existing success stories demonstrating proven approaches to forest finance.
Costa Rica and Guyana are channeling revenue from carbon credits to scale conservation efforts, while Kenya advances sustainable wood use in green construction and Brazil’s Plano Safra offers reduced interest rates for sustainable agricultural practices.
Uruguay has pioneered innovative financial instruments through the world’s first Deforestation-Linked Sovereign Bond, linking coupon payments to climate and deforestation key performance indicators, creating a model for debt-for-nature mechanisms.
The Brazil Restoration and Bioeconomy Finance Coalition announced commitments totaling $4.5 billion for forest restoration and bioeconomy projects, demonstrating private sector engagement aligned with the roadmap’s objectives.
Current forest financing represents less than 4% of international climate finance flows, representing what experts describe as a critical missed opportunity for climate action.
Previous estimates suggested a $130 billion annual forest finance gap, making the new UNEP analysis significant for understanding financing requirements.
The roadmap emphasizes that forest preservation and economic development represent complementary rather than competing objectives, highlighting how forest finance can support bioeconomies that create employment while maintaining forest cover.
With five years remaining until the 2030 deadline for halting forest loss, the initiative provides ministers, government officials, private sector actors, and civil society with a comprehensive implementation framework built around scalable existing initiatives.
The launch occurred during the Nature Hub at Climate Week NYC, bringing together high-level representatives including ministers from Colombia, Brazil, Guyana, and the UK, alongside UN Climate Change High-Level Champions and territorial community leaders.
