A Debt for Nature Swap

A debt for nature swap is a financial agreement where a portion of a country's debt is forgiven or reduced in exchange for the country's commitment to invest in environmental conservation. Essentially, a creditor agrees to cancel part of the debt if the debtor allocates funds or implements projects to protect natural resources, such as forests or wildlife. This approach helps developing countries manage their debt while promoting sustainable environmental practices, benefiting both the country's economy and ecosystem health.