.jpeg)
What if debt was written off to protect climate and nature?
. . . . . (Image credit: Getty Images)
From Barbados to Belize, nations are beginning to swap debt for action on climate and conservation. But how far can this help without deeper reform of the global financial system?
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.
.jpeg)
