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What if debt was written off to protect climate and nature?

India Bourke

December 13, 2023 |

BBC |

Text |

1500-3000 Words

Response Location: Ecuador

Severely indebted countries are using debt-for-climate swaps to shrink their debt while helping the environment. To make these swaps possible, creditors sell back their portion of the debt at a reduced rate to alleviate the risk of the country defaulting. Then, new loans are issued at a cheaper rate in exchange for the country committing to use some of the money it saves becuase of the lower rate on projects that benefit the climate.

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