The Dutch government said on Monday it would contribute up to $500 million over the next decade to an international fund to help protect tropical forests, Report informs via Reuters.
The money will help set up the Tropical Forest Forever Facility, a new public-private wealth fund which aims to reward countries for preserving tropical forests.
The fund aims to grow to $125 billion, with around $100 billion in investments from the private sector. The fund's net proceeds will be used to structurally reward countries that actively work to preserve forests. The indicative reward is expected to be around $4 per year per hectare, with checks on preservation made through satellite images. The fund expects to be able to help save up to 900 million hectares of tropical forests, the Dutch government said.
The Netherlands said it had joined a coalition of countries including Brazil, Indonesia, Britain, Norway, France and Germany that has already pledged contributions. The fund will be developed by the World Bank and is expected to be operational by mid-2027.