2016- The Seychelles Debt-for-Nature Swap

Developing nations, particularly Small Island Developing States (SIDS), stand on the front lines of climate change and biodiversity loss, yet face immense hurdles in funding critical conservation efforts. With small economies, limited resources, and high vulnerability to global shocks, these nations are often burdened by significant debt, leaving little room to invest in protecting their invaluable natural assets or adapting to a changing climate.

For years, developing countries have championed innovative financial solutions. Among the most promising is the Debt-for-Nature Swap—an elegant mechanism where existing loan obligations are restructured, and the freed-up funds are strategically redirected to achieve vital biodiversity and climate outcomes. This concept, first envisioned in 1984, has historically supported terrestrial conservation.

However, a new chapter began with Seychelles. Recognizing its vast marine territory as key to its "Blue Economy," Seychelles partnered with The Nature Conservancy (TNC) following the 2012 Rio+20 summit. This groundbreaking collaboration aimed to use a debt-for-nature swap to conserve 30% of its Exclusive Economic Zone (EEZ), signaling a powerful shift towards ocean-focused conservation and a sustainable future for SIDS and the world. This innovative approach offers a lifeline, transforming debt into investment for a healthier planet.