Canada has pledged up to C$560 million ($392.5 million) over four years to the Tropical Forests Forever Facility, a Brazilian-led initiative, the Canadian government said in a statement on Sunday. Prime Minister Mark Carney announced the commitment during a meeting with Brazilian President Luiz Inacio Lula da Silva on the sidelines of the Association of Southeast Asian Nations summit in Manila, Philippines.

Canada said the contribution is intended to help the fund reach the fundraising targets needed to begin operations and to attract further public and private investment. The facility, launched at the COP30 climate summit in Brazil last year, aims to grow to $125 billion, with about $100 billion expected from the private sector. Co-led by Brazil and Norway, it seeks to raise $35 billion from sponsoring governments and organisations to leverage up to $140 billion in private investment.S1S2

The pledge is drawn from nearly $6 billion in international climate finance committed in the 2026 Spring Economic Update, and forms part of Canada's broader target of providing more than C$13 billion in international climate finance to developing countries by 2031. Net returns from the facility's investments are to fund performance-based conservation payments across more than 70 countries, protecting over one billion hectares of tropical forest annually, with at least 20 per cent of those payments designated for Indigenous Peoples and local communities.S1S2

Carney and Lula also discussed cooperation in trade, critical minerals, energy and defence. Lula, addressing the regional gathering, argued that a multipolar world based on multilateralism is more conducive to peace and prosperity, and warned that the Global South is bearing the cost of unfair tariffs and a shock in energy and fertiliser prices.S1S2