Nature and Biodiversity

PERSPECTIVES - Closing the forest finance gap: why integration is the only path to ending deforestation

PERSPECTIVES - Closing the forest finance gap: why integration is the only path to ending deforestation
At COP30 in Belém, one message cut through: no single actor can stop deforestation alone. Whether the discussion centered on Brazil’s innovative green finance tools, China’s evolving sustainable agriculture models, or Indonesia’s work to align trade with forest protection, the same conclusion emerged: the only real solutions are integrated ones.

In our event titled “Closing the Forest Finance Gap: Investing in People, Planet & Progress,” we brought together leaders from government, finance, and business to accelerate action toward halting and reversing deforestation by 2030. We were honoured to feature representatives from Brazil, Indonesia, and China, three essential voices in shaping the future of tropical forests and global supply chains.

Here are four pillars that must move together if we’re serious about halting and reversing forest loss by 2030:

Public policy that enables and enforces nature-positive outcomes
Strong environmental governance and effective incentives create the stable conditions needed to shift markets away from deforestation and toward sustainable land use. Without aligned policy, even the best corporate or financial innovations struggle to scale.

“If we are serious about ending deforestation, we must embrace a truly systemic approach—one that links forest conservation, restoration and sustainable commodity production, and puts people and economics at the heart of the solution. The conversations at COP30 made it clear that no single actor can succeed alone: only by integrating policy, finance, corporate action and community leadership can we close the forest finance gap and build resilient landscapes that work for both nature and livelihoods.” adds Danielle Carreira, Head of Finance Sector Engagement, Tropical Forest Alliance


Corporate practice rooted in sustainability and accountability
Companies drive global commodity supply chains. When sustainability is embedded into procurement, reporting, and risk management deforestation-free production becomes both achievable and commercially viable. Transparent, accountable corporate behavior is a cornerstone of forest protection.

Finance that values natural capital
From blended finance and catalytic capital to mainstream investment tools, the financial sector has enormous influence. This COP has proven so. By integrating deforestation risk, supporting landscape-scale initiatives, and rewarding long-term ecosystem stewardship, finance can unlock the trillions needed to accelerate nature-positive transitions.

The Catalytic Capital for the Agricultural Transition (CCAT) was introduced as a concrete example of how blended finance can unlock large-scale investment in regenerative agriculture and forest restoration, signaling strong market demand for such collaborative models.

Civil society engagement ensuring equity and inclusion
Forest solutions must work for people not just on paper. Indigenous communities, smallholders, local organizations, and NGOs bring legitimacy, local knowledge, and social equity to the table. Their engagement ensures that forest protection strengthens livelihoods rather than undermining them.

The way forward
Progress is being made. Global forest loss has fallen dramatically since the Paris Agreement but we are still far from where we need to be.
The conversations at COP30 made it clear that breaking down silos is no longer optional. Forest protection succeeds only when policy, business, finance, civil society, and science move in tandem, reinforcing one another.

If we align incentives and integrate these dimensions, getting closer to zero deforestation by 2030 becomes not just a target, but an achievable milestone.