The UK has pledged to invest £400 million ($541 million) in the Tropical Forests Forever Facility (TFFF), a Brazil-led initiative that would finance tropical forest protection through payments linked to countries’ conservation performance. The commitment will be structured as a loan, reflecting the UK government’s stated shift toward acting as an investor rather than a donor, and remains subject to final due diligence and Britain securing a role in the fund’s oversight. TFFF aims to raise $125 billion, including $25 billion from governments and public institutions. Brazilian officials are targeting an initial $10 billion from public sources and, according to two sources cited by Reuters, expect to reach that goal by year-end. The UK’s earlier decision not to contribute had drawn criticism because of its role in helping design the facility. TFFF was announced as a flagship project when Brazil hosted COP30 last year and was an EarthShot Prize finalist. Under the proposed structure, tropical forest countries would not repay the UK directly; the facility is intended to generate returns for investors while rewarding successful forest protection. The UK says the loan structure would provide value for British taxpayers, support climate and nature action and allow funding to be treated as a financial transaction rather than a grant.