Establishment of a Financial Intermediary Fund for the Tropical Forest Forever Facility (TFFF) - Chair Summary - October 21, 2025

Jul 19, 2026

Executive Directors approved establishing a Financial Intermediary Fund (FIF) for the Tropical Forest Forever Facility (TFFF) at the World Bank, with the Bank serving as Trustee and Interim Host to the Secretariat. The proposal includes a structure allowing the Trustee to enter financing agreements with TFFF recipients, including direct access recipients, and an exceptional waiver of the World Bank’s FIF Directive (2022) for initial donor commitments of USD 200 million. Directors emphasized the role of finance for forest conservation and key design contributions by Brazil and the Interim Steering Committee. They also discussed World Bank services for the related TFIF, communications planning, synergies across climate FIFs, and a formal TFFF launch at COP30 in November, supported by a post-COP30 roadmap.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages1

Reading Time3 min

Executive Directors’ approval

Fund structure and conditions

Waiver of FIF Directive requirement

Role of the World Bank and TFIF services

Funding contributions and countries confirmed

Communications, COP30 launch, and roadmap

Public Disclosure Authorized Public Disclosure Authorized Establishment of a Financial Intermediary Fund for the Tropical Forest Forever Facility (TFFF) Chair Summary* October 21, 2025 Executive Directors approved the proposal to establish a Financial Intermediary Fund (FIF) for the Tropical Forest Forever Facility (TFFF) at the World Bank, with Bank support to the FIF by acting as the Trustee and the Interim Host to the Secretariat. Directors also recognized Management’s approach to meeting the associated conditions, specifically the novel structure where the Trustee may enter into financing agreements with recipients ofthe TFFF funding, including direct access recipients. Further, on an exceptional basis, Directors endorsed management’s proposal to waive the World Bank’s FIF Directive (2022) requirement for the donors to commit a minimum amount totaling USD 200 million at the FIF’s inception since the TFFF is expected to be funded by the Tropical Forest Investment Fund (TFIF) once it is set up. Mr. Wisner wished to be recorded as opposing. Directors recognized the critical importance of the provision of finance related to forests conservation and agreed that the FIF can play a key role in the overall nature finance architecture. They noted that the request to the World Bank to establish the FIF by Brazil and Partners was the outcome of the extensive design process led by Brazil and the Interim Steering Committee. Directors noted that the World Bank has also been asked to provide services as Treasury Manager for the TFIF (the scope ranges from assisting with senior bond issuance and managing liquidity to only managing liquidity, if any), but will not participate in the capital fundraising or governance of the TFIF, nor will it serve as its Chief Financial Officer, Chief Investment Officer, or provide staff. The World Bank is also providing assistance in finalizing TFIF’s design, which will be setup as a separate legal entity distinct from the FIF structure of the TFFF. The TFFF will require grant contributions from sponsors in the amount of USD 30 million to finance the set-up and initial running of the Interim Secretariat and the Trustee. Four countries have confirmed willingness to provide this funding: Germany, the Netherlands, Norway, and the UK. Directors agreed with the need for a communications and engagement strategy, including a planto clarify the limited roles of the Bank in relation to the FIF. They expressed enthusiasm for the formal launch of the TFFF in November at the COP30 in Belem, Brazil, and encouraged Management to develop a post-COP30 roadmap with milestones to sustain momentum. Finally, they noted the importance of fostering synergies across climate FIFs and avoiding fragmentation. *This Summary is not an approved record.

FAQs

What did Executive Directors approve regarding TFFF and the World Bank?

They approved establishing a Financial Intermediary Fund (FIF) for TFFF at the World Bank, with the Bank supporting the FIF as Trustee and Interim Host to the Secretariat.

How does the approved FIF structure enable financing for TFFF recipients?

The Trustee may enter into financing agreements with recipients of TFFF funding, including direct access recipients.

Why was a waiver of the World Bank’s FIF Directive (2022) endorsed?

Directors endorsed waiving the requirement for donors to commit a minimum total of USD 200 million at FIF inception because TFFF is expected to be funded by the Tropical Forest Investment Fund (TFIF) once set up.

Jul 19, 2026

Upload by River Wang