by Patrick Greenfield on (#6CB5T)
Agreements to reduce developing countries' debt burden in exchange for spending on nature will be on the agenda at a finance summit in Paris this weekAfter 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 Galapagos 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. Continue reading...