The UK government announced on 3 September 2026 its intention to invest £400 million into the Tropical Forests Forever Facility (TFFF) through a loan rather than a grant. The plan was conditional on finalising the facility's governance and operational arrangements, completing due diligence and meeting the UK's conditions. The government said the loan structure would ensure value for money for taxpayers while still supporting climate and nature action.

According to the announcement, forest countries would not be expected to repay the funding; instead, the facility is designed to generate investment returns from its performance-based model, repaying investors and rewarding countries that protect tropical forests. As a condition, the government is seeking participation in relevant fund oversight mechanisms. It also said the investment remains subject to a review of the facility's final size, crediting arrangements, structure and loan terms. The government linked the move to a reprioritisation announced on 22 July that it said allowed funding to be switched to support a £2 cap on single bus tickets.

The TFFF was launched at COP30 and was an EarthShot Prize finalist, the announcement said.