About
Debt-for-nature swaps were first introduced in 1984 to reduce the debt burden of low-income countries in exchange for their commitment to environmental protection. These nature swaps gained popularity during the '80s and '90s but largely fell out of favor after 2000, in part due to their shortcomings: small debt relief with high transaction costs, sovereignty concerns, and limited conservation impact.
In the 2020s, amid record levels of debt distress exacerbated by the pandemic and rising interest rates, nature swaps have reemerged as a potential tool for alleviating debt burdens while unlocking climate and nature finance. This new generation of swaps differs from earlier models in its focus on refinancing private-sector loans through green or blue bonds, with public-sector derisking via credit enhancements. To date, nine new nature swaps have been put in place.
Want to learn more about debt-for-nature swaps, how this new generation of swaps is different, and what policy changes might enhance their impact? Join this National Ecosystem Services Partnership (NESP) webinar presented by Elizabeth Losos, executive in residence at the Nicholas Institute for Energy, Environment & Sustainability at Duke University and coauthor of a recent Science article on maximizing debt-for-nature swaps’ effectiveness.
