Are debt-for-nature swaps the way forward for conservation? Patrick Greenfield

After decades in the wilderness, and familiar to only those in the know, “debt-for-nature swaps” are becoming one of the hottest things in conservation finance. Last month, Ecuador struck the biggest deal of its kind: refinancing $1.6bn (£1.3bn) of its commercial debt at a discount in exchange for a consistent revenue stream for conservation around the Galápagos Islands.

Other nature-rich countries that are struggling to pay their debts have taken notice and deals are rumoured in Gabon and Sri Lanka. The market for debt-for-nature swaps is poised to exceed $800bn, according to Bloomberg, prompting fierce competition between banks as demand for green investments increases.

The ‘father of biodiversity’ Dr Thomas Lovejoy, in 2005. He had the original idea behind debt-for-nature swaps. 

Debt-for-nature swaps mean reducing a developing country’s debt burden in exchange for guaranteed finance for nature. 

Read more:
https://www.theguardian.com/environment/2023/jun/21/are-debt-for-nature-swaps-way-forward-for-conservation-aoe

Find more age of extinction coverage here, and follow biodiversity reporters Phoebe Weston and Patrick Greenfield on Twitter for all the latest news and features

ESG, SDG, CER, GRI, FSC, LCA, WELL

Patrick Greenfield