Brazil will launch a new financing mechanism to reward countries for preserving tropical forests, seeking $125bn in public and private investment, the finance ministry said ahead of the COP30 climate summit in Belém.

The initiative, called the Tropical Forests Forever Facility (TFFF), aims to provide annual payments to developing nations based on the amount of forest they conserve, AFP reported.

Under the proposal, $25bn would come from "sponsor" governments prepared to absorb early risks, whilst another $100bn would be drawn from private investors such as pension and sovereign wealth funds.

The investment returns would help finance payments to forested countries that maintain deforestation rates below 0.5%, verified by satellite monitoring.

"This is the way forward," said João Paulo de Resende, a special climate adviser at Brazil's finance ministry. Finance minister Fernando Haddad added that Brazil realistically expects to secure "about $10bn by the end of next year."

“To reach $10bn, it would be enough for a few G20 countries to join so we could begin compensating nations that preserve tropical forests, especially those in debt and lacking the resources to maintain them. The TFFF would support this initiative,” Haddad said.

He added that several countries had already shown interest in contributing to the fund and are expected to confirm commitments at the upcoming COP30 summit.

The fund could generate $4bn annually, with Brazil, Indonesia and the Democratic Republic of Congo amongst the main beneficiaries. Brazil has pledged $1bn so far, whilst the UK said it would support the initiative without committing public funds.

Brazilian President Luiz Inácio Lula da Silva said global leaders must move beyond "talking" and start implementing climate commitments as the country prepares to host the COP30 summit in the Amazon from November 10-21. Lula has long positioned himself as a global advocate for climate protection.

"Enough talking, now we have to implement what we've already discussed," he told reporters at a press conference.

He said the event in Belém, which will gather around 50 heads of state and 50,000 participants, was deliberately held in the Amazon, so the world could "see the region's reality."

Lula also confirmed Brazil's priorities at the talks, including the approval of the Tropical Forest Forever Fund, a global financing mechanism to reward nations for protecting forests.

Lula added that Brazil would push for an Environment Council under the UN "with a bit more power" to monitor global climate commitments and open discussions on reducing fossil fuel use.