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https://www.bbc.com/future/article/20231212-what-if-the-world-cancelled-debt-for-climate-and-nature>
"Hundreds of miles off the coast of South America lie the rocky, volcanic
islands of the Galapagos. Teeming with unusual creatures – from jaunty,
blue-footed birds to dragon-like iguanas – these bountiful isles have long
inspired innovative thinking.
A visit by the 19th-Century naturalist Charles Darwin prompted his famous
theory of evolution, which proposed that species that are more adapted to their
surroundings are more likely to survive. And now the islands are playing host
to a very contemporary adaptation experiment: debt relief in exchange for
spending on climate and nature.
Earlier this year, Ecuador, which has sovereignty over the Galapagos, announced
a record-setting deal. With the help of the private Credit-Suisse investment
bank and the US development bank, it refinanced $1.6bn (£1.3bn) of government
bonds at a discounted rate and issued a new "blue bond". In exchange, at least
$12m (£10m) a year of the money saved via this cheaper loan will now be
funnelled into conservation efforts in the remote archipelago.
Known as debt-for-nature or debt-for-climate swaps, these new financial tools
are gaining ground in among severely indebted countries, from Barbados to
Belize. Plus, in freeing money to restore ecosystems and build resilience, some
believe they are shaping up to be part of the answer to a wider question: how
to fund the world's climate change response?"
Via
Positive.News
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
