Carney announces up to $560 million to protect tropical forests worldwide

MANILA — Prime Minister Mark Carney has announced up to $560 million for the protection of tropical forests around the world, in a move aimed at strengthening Canada's role in fighting climate change and preserving biodiversity.

The announcement came during a meeting between Carney and Brazilian President Luiz Inácio Lula da Silva on the sidelines of the Association of Southeast Asian Nations (ASEAN) summit in the Philippine capital, Manila.

The pledge comes amid criticism from environmental organizations over Carney's absence from the last two United Nations climate summits, even though his government says it remains committed to funding international environmental projects.

According to an official statement from the Prime Minister's Office, the funding will be provided over four years to support a new international mechanism led by Brazil and Norway to protect rainforests.

$560 million to protect tropical forests

The Canadian government said the new contribution will go to the Tropical Forest Forever Facility, known by the acronym TFFF.

The fund aims to provide sustainable financing to countries that preserve their tropical forests, rather than relying on temporary aid.

The Canadian contribution is expected to help provide the initial capital needed to launch operations and attract more government and private investment.

Ottawa explained that the funding is part of its existing international climate commitments, and not a separate spending program announced for the first time.

The Canadian contribution will be spread over four years, under arrangements to be carried out with international partners.

A global project to protect one billion hectares of forest

Once fully operational, the fund aims to protect more than one billion hectares of tropical forest annually in more than 70 countries.

The project relies on a system of financial payments to participating countries, tied to verifiable results in forest protection.

The initiative seeks to raise $35 billion from governments and supporting institutions, with the aim of attracting private investment of up to $140 billion.

Net investment returns are expected to be used to provide long-term funding for forest conservation programs.

The project also provides that at least 20 per cent of protection payments go to Indigenous peoples and local communities that depend on these ecosystems for their livelihoods.

Criticism over Carney's absence from climate summits

Despite the announcement of new funding, the Prime Minister faces criticism for not attending the last two UN climate summits in person.

He was absent from COP30, which Brazil hosted in 2025 and at which the tropical forest fund was launched.

He also did not attend COP31, being held in Antalya, Türkiye, this month.

Some environmental organizations argue that a prime minister's participation in major climate conferences reflects the level of political priority the government gives to the issue.

The government, for its part, highlights its financial commitments and its participation in international initiatives as practical indicators of Canada's continuing role in climate action.

The debate highlights a difference between judging environmental leadership by direct political presence and judging it by the size of funding and concrete action.

Canada pledges more than $13 billion in climate financing

The government said the contribution to forest protection is part of its goal of providing more than $13 billion in international climate financing to developing countries by 2031.

The plan includes roughly $6 billion in funding that the government addressed in its spring 2026 economic update.

Ottawa had previously announced a $3.8-billion strategy to protect the natural environment within Canada.

Last September, the government also announced investments of $1.2 billion to protect marine and coastal ecosystems.

Through these programs, the government seeks to strengthen nature protection, encourage private investment and reduce risks linked to climate change.

An environmental and economic partnership with Brazil

The meeting between Carney and Lula da Silva was not limited to forest protection, but also addressed opportunities to develop economic relations between the two countries.

Brazil is an important partner for Canada in Latin America, particularly in trade, energy and critical minerals.

Canada is holding trade negotiations with the Mercosur bloc, which includes Brazil and other South American countries.

The two countries hope environmental and economic partnerships will help expand investment and strengthen bilateral relations.

Lula also pointed to the importance of designing financing mechanisms that allow for economic returns, rather than being limited to direct aid.

This approach reflects the nature of the new forest fund, which relies on investing capital and using its returns to support conservation efforts.

Will the initiative succeed in halting deforestation?

Tropical forests are essential to regulating the global climate because of their role in storing carbon, protecting biodiversity and regulating the water cycle.

But they face continuing pressure from agricultural expansion, logging and other economic activities.

The initiative's backers are betting on providing financial incentives that make forest conservation an economically viable choice for countries and local communities.

However, achieving the stated goals depends on raising the required funding, putting in place reliable mechanisms to measure results, and ensuring payments reach those entitled to them.

The Canadian contribution does not mean the fund has already protected one billion hectares; that figure is a future target once the project is fully operational.

A new test for Carney's climate policy

The funding announcement comes as Carney's government focuses on diversifying trade relationships and strengthening international investment.

Ottawa is seeking to combine economic growth with environmental protection through partnerships that draw in public and private money.

But the criticism over the Prime Minister's absence from climate conferences raises questions for the government about its political presence in global environmental negotiations.

The success of the new pledge remains tied to the ability of the tropical forest fund to turn announced investments into real and lasting protection for threatened natural areas.