Check against delivery

President Lula, Secretary General Guterres, president Banga, distinguished colleagues,

Let me start by thanking you, President Lula, and your government for solid leadership.

And, for reducing deforestation with 11 percent – the fourth year in a row with reductions. – Both the practical and political impacts are huge.

Friends, the tropical forest is not merely a distant ecosystem. It is a guardian of biodiversity, a vital regulator of our climate, and a cornerstone of global stability.

The Tropical Forest Forever Facility – the TFFF – will reward countries for protecting the tropical forest.

And, not just that: the TFFF could deliver finance at scale for generations to come.

Friends,

Coming together here at the doorstep of the Amazonas, I am happy to announce a conditional loan contribution from Norway to the junior tranche.

This is a new kind of mechanism. Some may ask – is this aid or investment? I would say: This is an investment to deliver results – hopefully far better than traditional aid.

Our contribution comes with three conditions:

First, it is based on the understanding that a sustainable financial model will deliver the necessary returns at an acceptable risk. – Underlining that this is an investment into a very good cause.

As the model is further refined – and as investment policies are put in place – the risks to us, the junior tranche sponsors, should not increase.

Therefore, we count on the World Bank and President Banga’s able leadership and support in finalizing these details.

Second, we must capitalize the TFFF.

For this setup to deliver incentives to tropical forest countries – and at the same time being sustainable for investors and sponsors – we need to see a minimum capitalization of 10 billion US dollars to the junior tranche by the end of 2026.

And, as a consequence, Norway’s share should not exceed 20 percent.

Third, our loan will be paid over ten years and is, of course, subject to the Norwegian Parliament’s approval.

With these conditions in place, I am happy to share with you that Norway will provide up to 3 billion US dollars over 10 years.

We know that delivering the full 25 billion will be challenging. The TFFF will only work at a relevant scale if more sponsors – well-known and new – commit.

And even if we succeed, it may take some time until payments to forest countries commence.

In parallel, we must scale up our action and cooperation on all aspects related to reducing deforestation. We will discuss this after lunch. – Let me just say: This is a cornerstone of Norway’s climate policy – and we pledge to sustain our rainforest preservation support into 2035.

Friends,

The stakes are high, but this should be a turning point. Let us deliver on this ambition, together. – Thank you for your attention.