Tropical forests are essential carbon sinks, biodiversity reservoirs, and sources of resilience for Indigenous Peoples and Local Communities. They are not only vulnerable to climate change but also central to solving it. Yet, climate finance remains below what is needed to unlock their full potential in achieving environmental and development goals. Strengthening the forest–climate nexus presents a dual opportunity: forests provide large-scale carbon and non-carbon benefits, while financing mechanisms can foster sustainable, inclusive development. However, promoting forests as climate solutions requires differentiated and flexible approaches that reflect countries’ distinct socio-economic realities and political economies. This panel will discuss how forest financing can better align development, nature, and people across diverse national contexts.