Forests are among the planet’s most valuable natural treasures. Far more than collections of trees, they are living communities of plants, animals, fungi and microorganisms, sustained by healthy soils and water systems. They absorb carbon dioxide, regulate the climate, shelter wildlife, protect watersheds, support the livelihoods, and help communities adapt to the growing impacts of climate change through effective climate adaptation.
Yet this vital relationship is increasingly under threat. Despite their ecological, economic, and aesthetic value, forests continue to disappear under pressure from human activities. Expanding road networks, agricultural expansion, commercial activities, mining and unsustainable land use, continue to place forests under pressure. Whereas, the protection is falling short of what is needed due to both state-sanctioned and illegal activities.
According to the Forest Declaration Assessment 2026: Tracking Progress on 2030 Forest Goals, just over seven million hectares of forest were lost to deforestation in 2025. The world has also accumulated a shortfall of 10.7 million hectares in progress towards the reductions needed to meet the 2030 deforestation target.
The findings reveal an uncomfortable reality: although the rate of forest loss has declined 15% in 2025, marking the sharpest annual decline since the 2018–2020 baseline period, the destruction of natural ecosystems remains a global challenge. Despite a reason for cautious optimism over the fall of Global deforestation, a new international assessment warns that this improvement is not enough to put the world on track to halt and reverse deforestation by 2030.
Forest Conservation Funding Gap: What Does the 15% Decline in Global Deforestation Mean?
A decline in deforestation is encouraging, but it should not be mistaken for the end of the crisis. The 2026 assessment found that global deforestation fell to seven million hectares in 2025, compared with annual losses exceeding eight million hectares in the preceding years. However, the world remains substantially behind the trajectory required to eliminate deforestation by the end of the decade.
The assessment estimates that the cumulative shortfall since 2021 has reached 10.7 million hectares. In other words, millions of additional hectares of forest have been lost compared with what would have remained standing if the world had followed its planned reduction pathway. This distinction matters. Progress should not be measured only by whether forest loss decreases from one year to the next. Governments must also demonstrate that the decline is sufficiently rapid, sustained and widespread to meet their international commitments. A single year of improvement can not compensate for years of inadequate action.
Tropical Forests Face Uneven Pressures
The global picture conceals significant differences between regions. Some areas have made progress, while others continue to experience rising forest loss.
Tropical Latin America and the Caribbean:
Tropical Latin America and the Caribbean recorded a substantial reduction in deforestation, with forest losses falling to 33% below the 2018–2020 baseline. This is a positive development for a region containing globally important ecosystems, including the Amazon rainforest. However, the assessment warns that the Amazon faces the risk of crossing a warming threshold that could trigger profound ecological changes.
The Amazon plays an essential role in storing carbon, regulating regional rainfall and supporting extraordinary biodiversity. Continued forest destruction, combined with rising temperatures and other environmental pressures, could weaken these functions. Protecting the Amazon is therefore not merely a regional responsibility. Its future has implications for the global climate and the natural systems upon which humanity depends.
Tropical Africa:
The situation in tropical Africa is more concerning. According to the assessment, deforestation continued to rise, with the region reaching a level comparable to tropical Latin America and the Caribbean for the first time. This trend highlights the need for stronger forest governance, sustainable agricultural practices, improved land-use planning and support for communities whose livelihoods depend on forests.
Tropical Asia:
Deforestation in tropical Asia remained broadly unchanged, suggesting that the underlying causes of forest loss have not been adequately addressed. The assessment also found that forest degradation in tropical moist forests declined to approximately 3.5 million hectares in 2025. However, degradation remains a serious concern because forests can lose biodiversity, carbon-storage capacity and ecological functioning even when they have not been completely cleared.
Forest Degradation: The Damage Beyond Tree Loss
Deforestation and forest degradation are related, but they are not the same. Deforestation occurs when forest is converted to another land use, such as agriculture, infrastructure or mining. Forest degradation, by contrast, occurs when an existing forest deteriorates and loses some of its ecological quality.
A forest may remain visible on a satellite image while becoming increasingly fragmented, damaged or unable to support its original wildlife. The assessment found that 65.4 million hectares of forest were downgraded to a lower ecological integrity category in 2024.
This finding illustrates why protecting forest cover alone is insufficient. Healthy forests require diverse native species, functioning ecological relationships, suitable habitat conditions and the ability to regenerate naturally.
Commercial logging, road construction, fires, pollution and other disturbances can weaken these systems. When forest ecosystems deteriorate, the consequences extend to wildlife, soil quality, water cycles and climate regulation. Forest conservation must therefore protect not only the area covered by trees but also the ecological integrity of the forests themselves.
Forest Restoration Remains Far Below the Required Scale
Protecting existing forests is essential, but restoring degraded landscapes is equally important. The assessment estimated that approximately 11.8 million hectares of land were under active forest restoration. This represents nearly 6% of the estimated global reforestation potential.
The figures underline the enormous gap between the restoration taking place and the broader ambitions for recovering damaged ecosystems. Tree planting can contribute to restoration, but planting trees alone does not guarantee a healthy forest. Large-scale plantations of a single species cannot automatically replace the biodiversity, structure and ecological relationships of natural forests.
Effective restoration should prioritise naturally regenerating forests, native species, soil recovery, watershed protection and the reconnection of fragmented habitats. Local communities should also participate in planning and maintaining restoration projects. Their knowledge of landscapes, native vegetation and local environmental conditions can help improve long-term outcomes. The objective should be to restore functioning ecosystems, rather than simply increase the number of trees planted.
Agriculture and Commercial Demand Continue to Drive Forest Loss
Agriculture remains a major pressure on forests, particularly where natural ecosystems are cleared to produce commodities for domestic and international markets. The assessment reported that commodity-driven deforestation declined to 6.01 million hectares in 2025, compared with a baseline of 7.24 million hectares during 2018–2020. Despite this reduction, the rate remains far above the pathway required to eliminate commodity-driven deforestation by 2030.
Demand for forest-risk commodities, including beef and soy, contributes to pressure on natural landscapes. Mining and the extraction of other materials can also damage forests directly or through the construction of roads and associated infrastructure.
The report additionally estimated that nine million to 13 million hectares of grasslands and other non-forest ecosystems were converted annually. This is an important reminder that environmental protection must extend beyond forests.
Grasslands, wetlands and other natural habitats also support biodiversity, store carbon and sustain ecological processes. Governments and businesses need stronger supply-chain monitoring, transparent sourcing and land-use policies that prevent the destruction of valuable natural ecosystems.
Companies Are Falling Short on Forest Protection
Businesses have a significant influence on the future of forests through their purchasing decisions, production methods and investment choices. Yet the assessment found that only 29% of the major companies evaluated under the Forest 500 initiative had comprehensive zero-deforestation commitments covering all the relevant commodities they handled. Fourteen major companies also weakened or withdrew existing commitments in 2025.
There was some progress: the number of companies adopting Science Based Targets initiative standards for Forest, Land and Agriculture (SBTi FLAG) doubled during 2025, reaching 461 by June 2026. Nevertheless, voluntary commitments must translate into measurable changes in business practices.
Companies should trace the origins of their raw materials, prevent forest destruction throughout their supply chains, disclose their progress and ensure that suppliers comply with credible environmental standards. Financial institutions also have a responsibility to assess whether their investments support forest conservation or contribute to environmental destruction. Without accountability, sustainability promises risk becoming statements of good intentions rather than effective instruments of change.
Forests Receive Only a Small Share of Climate Finance
One of the most striking findings concerns the money available to protect and restore forests. According to the assessment, forestry received approximately $6 billion in climate finance in 2024, equivalent to just 0.3% of the estimated $2 trillion in global climate finance that year.
Public funding accounted for approximately $5.26 billion, while private sources contributed around $750 million. Meanwhile, governments provided an estimated $410 billion annually in potentially harmful agricultural subsidies between 2022 and 2024. Fossil fuel subsidies amounted to another $921 billion in 2024.
These figures reveal a serious imbalance between the resources directed towards environmental protection and the financial support provided to activities that may damage nature or intensify climate change. Closing this gap requires more than increasing conservation budgets. Governments must also reform harmful subsidies, strengthen environmental safeguards and direct public and private investment towards sustainable land management. Adequate funding is essential for forest monitoring, restoration, protected areas, community-led conservation and the enforcement of environmental laws.
Indigenous Peoples and Local Communities Must Have a Stronger Voice
Indigenous Peoples and local communities play an important role in conserving forests, maintaining traditional knowledge and protecting biodiversity. The assessment estimated that these communities hold customary rights over approximately 5.5 billion hectares of land worldwide, but only around one billion hectares have clear legal recognition of those rights. Although more than 70% of the 84 national climate plan submissions examined in a 2026 review mentioned underrepresented groups, including Indigenous Peoples and local communities, references alone do not guarantee meaningful participation.
The assessment found that many submissions did not adequately explain how these groups had participated in preparing climate plans or how they would contribute to implementation. Recognition of land rights, free, prior and informed consent, equitable benefit-sharing and direct access to climate finance are important elements of fair and effective conservation. People who live in and depend on forests should not be treated merely as beneficiaries of environmental policies. They should have a meaningful role in decisions affecting their land, livelihoods and future.
The 30-by-30 Conservation Target Remains a Challenge
The Kunming-Montreal Global Biodiversity Framework, adopted in 2022, includes a target to conserve at least 30% of the world’s land and inland waters and 30% of its marine areas by 2030. However, the assessment found that protected areas covered approximately 17.33% of the world’s land and inland waters.
Reaching the terrestrial component of the 30-by-30 target will require substantial expansion of conservation coverage before the end of the decade. Yet the quality of protection matters as much as the area designated. Protected areas need effective management, adequate funding, ecological connectivity and safeguards against illegal exploitation. Conservation planning should also respect the rights of local communities and recognise the ecological value of landscapes beyond formally designated parks and reserves.
What Must the World Do Before 2030?
The findings of the Forest Declaration Assessment 2026 show that the remaining years of this decade are critical. Reversing the trend requires coordinated action by governments, businesses, financial institutions and communities. Priority measures include:
– Strengthen forest protection: Enforce environmental laws, prevent illegal logging and mining, and improve monitoring of forest loss.
– Protect natural forests: Prioritise the conservation of existing forests and their biodiversity rather than relying exclusively on new plantations.
– Accelerate ecological restoration: Restore degraded forests, wetlands and other ecosystems using scientifically sound, locally appropriate methods.
– Transform agricultural supply chains: Prevent the conversion of forests and other natural habitats for commodity production.
– Increase climate finance: Mobilise more public and private funding for forest conservation, restoration and community-led initiatives.
– Reform harmful subsidies: Redirect financial support towards sustainable production and activities that protect natural ecosystems.
– Recognise community land rights: Strengthen legal protections and ensure the meaningful participation of Indigenous Peoples and local communities.
– Expand effective conservation: Increase protected-area coverage while ensuring that protected landscapes receive adequate resources and management.
Individuals can contribute by reducing waste, making more responsible consumption choices, supporting credible conservation initiatives and protecting trees and natural habitats in their own communities. Individual action cannot replace strong policies, but it can reinforce a broader culture of environmental responsibility.
Conclusion: A Decline in Deforestation Is Not Yet a Victory
The finding that global deforestation falls 15% in 2025 offers a reason for cautious hope. It demonstrates that progress is possible and that forest loss can decline. However, seven million hectares of forest disappearing in a single year remains an enormous environmental cost. Widespread degradation, inadequate restoration, insufficient climate finance and weak corporate commitments continue to undermine international forest goals.
The world cannot achieve meaningful forest protection through pledges alone. Governments must enforce their commitments, businesses must change damaging practices, and financial systems must stop rewarding environmental destruction.
Forests are not simply collections of trees or resources waiting to be extracted. They are living systems that sustain biodiversity, regulate the climate, protect water and soil, and connect countless forms of life. Every forest preserved today safeguards part of the natural inheritance of future generations. The real measure of success will not be a temporary decline in deforestation, but a lasting global transformation in how humanity values, protects and restores the natural world.
