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Debt-for-nature swaps allow countries to redirect portions of their debt obligations toward investments that protect biodiversity and address climate change. These innovative financial mechanisms can unlock significant resources for conservation—such as commitments to protect and manage 30% of marine areas—yet their economic value remains largely invisible in traditional macroeconomic assessments.
Chetan Hebbale, PMP, Managing Policy Advisor for Greening Sovereign Debt at The Nature Conservancy, will explore emerging methodologies for quantifying natural capital and ecosystem services as essential drivers of economic growth. In this talk Hebbale will examine current approaches to integrating these environmental assets into the IMF and World Bank’s Debt Sustainability Framework, as well as into sovereign risk models used by credit rating agencies. The discussion will highlight how recognizing nature’s economic contribution can reshape perceptions of fiscal stability and creditworthiness in developing economies.
