IIF Authors

Status: Will be live at 12/16/2021 16:07

Green Weekly Insight: Debt-for-Nature Swaps–Tackling the Triple Threat

  • Low-income and lower-middle-income countries are tackling the triple threat of debt, climate change and biodiversity. 
  • The vast majority of sovereign and sub-sovereign debt restructurings do not incorporate ESG considerations.
  • The recent experience of Belize highlights the potential benefits of debt-for-nature swaps in tackling this triple threat.
  • Untapped potential:  30+ countries have used debt-for-nature swaps to fund more than $1bn in environmental protec-tion initiatives, though they have been used less frequently since the 1990s.