Carney Commits $560M to Brazil-Led Rainforest Protection Fund

Canada will contribute up to $560 million over four years to an international rainforest protection initiative co-led by Brazil and Norway, Prime Minister Mark Carney announced on Sunday.

The commitment was unveiled during a meeting between Carney and Brazilian President Luiz Inácio Lula da Silva on the sidelines of the Association of Southeast Asian Nations summit in Manila, the Philippines.

According to a statement from the Prime Minister's Office, the funding comes from a $6-billion pot Ottawa set aside this spring for international climate finance. It also counts toward Canada's broader pledge to deliver more than $13 billion in climate financing to developing countries by 2031.

The money is destined for the Tropical Forests Forever Facility, a fund launched at the COP30 climate summit in Brazil last year. The facility aims to grow to $125 billion, with roughly $100 billion of that expected to come from private sector investment.

Once operational, the fund is designed to support forest conservation in more than 70 countries and protect over one billion hectares of tropical forest each year. Conservation payments would be tied to verified results, and at least 20 per cent of those payments are earmarked for Indigenous people and local communities.

Ottawa said its contribution is intended to help the facility hit the fundraising targets required to launch operations and draw in additional public and private capital.

The announcement lands at a moment when Carney has drawn criticism from environmental advocates and opposition parties over his government's rollback of some environmental policies. He has also been faulted for skipping the last two UN climate summits.

In the statement, the prime minister framed the pledge as part of a Canadian tradition of environmental stewardship. "Canadians have always understood our responsibility to protect nature, both in our own backyard and around the world," he said. "Tropical forests are among the most vital ecosystems on Earth. Protecting them is essential to halting biodiversity loss, stabilising our climate, and safeguarding the well-being of communities everywhere."

Lula, speaking through an interpreter, characterized the funding as investments that would generate returns rather than "donations, money for free."

The two leaders also discussed cooperation on trade, critical minerals, energy and defence, according to the Prime Minister's Office.