Switzerland says it will support a new World Bank fund aimed at helping preserve the world's tropical forests.
The State Secretariat for Economic Affairs (Seco) announced it would provide SFr8.75 million ($7.75 million) towards the project, which was launched on the sidelines of the Bali climate conference on Tuesday.
The Forest Carbon Partnership Facility (FCPF) is aimed at helping developing countries reduce greenhouse gas emissions from deforestation and degradation.
According to Seco, almost 12 million hectares of tropical forest – an equivalent of three times the size of Switzerland - disappears each year.
Studies have shown that the destruction of tropical forest accounts for 20 per cent of annual emissions of greenhouse gases due to human activity.
Experts say that deforestation not only affects carbon absorption, but also leads to a biodiversity loss.