In a significant initiative, several African nations are in discussions to establish a joint “debt-for-nature” swap that could potentially raise over $2 billion for the conservation of coral ecosystems in the Indian Ocean. This collaborative effort seeks to provide a sustainable financing solution for environmental protection, a pressing need for many developing nations.
Debt-for-nature swaps allow countries to convert existing debt into more manageable terms, directing the financial savings towards conservation projects. While previous swaps have been implemented in countries like Ecuador, Barbados, and Seychelles, this would mark the first instance of multiple countries participating in a single swap aimed at preserving a shared marine ecosystem.
Thomas Sberna, regional head for coastal and ocean resilience at the International Union for the Conservation of Nature (IUCN), highlighted the significance of this initiative, although the specific countries involved have not yet been disclosed. He noted that nations such as Kenya, Madagascar, Mauritius, Mozambique, Seychelles, Somalia, South Africa, Tanzania, and the Comoros are part of the broader “Great Blue Wall” conservation strategy, which aims to protect and restore vast marine areas.
Originally announced in 2021 and supported by the U.S. and U.K. governments, the Great Blue Wall initiative aspires to safeguard 2 million hectares of ocean by 2030, benefiting approximately 70 million people in coastal communities. Sberna emphasized that achieving ambitious conservation goals requires innovative agreements, stating, “To make a meaningful impact, we can not rely on one-off arrangements.”
Historically, negotiations over environmental responsibilities and fishing rights have posed challenges for regional collaboration. However, this joint approach aims to streamline these discussions and attract investment for biodiversity protection. Increasing financial resources for conservation will be a key topic at the upcoming global climate talks in Colombia this October, following a landmark commitment to protect 30% of the world’s land and seas by 2030.
Sberna noted that many countries at the forefront of the climate crisis face heavy debt burdens, which can take up to 20% of their GDP to manage. “We need to drastically scale up marine protected areas from 1% to 30% within the next decade; the existing model is not viable,” he asserted.
Countries like Kenya, Tanzania, and Mozambique have suffered significant losses in mangrove forests, coral reefs, and fish populations since the 1980s, jeopardizing local livelihoods and food security. Key negotiations will focus on determining which portions of each country’s debt will be included in the swap and how conservation funds will be allocated and overseen.
To facilitate this process, the IUCN and partners are considering creating a dedicated fund worth at least $2 billion, comprised of $500 million in concessional funding and $1.5 billion in bond swap resources. Additionally, discussions with major multilateral development banks are ongoing to provide credit guarantees and insurance, which could help reduce interest rates on new “blue” or “nature” bonds replacing more expensive existing debt.
Moreover, several ocean-dependent sectors, including fishing and tourism, are exploring their own debt-for-nature swaps. The success of this collaborative initiative may also depend on the pace at which Caribbean nations reportedly examined similar plans for their coral reefs act. Madagascar has confirmed its involvement in discussions, with negotiations still in preliminary stages. Other nations have not yet commented on this evolving situation.
