One such example, the United Nations Development Programme Financing
Solutions for Sustainable Development initiative, includes debt-for-nature
swaps. Under this financial contract lenders agree to reduce a developing
economy’s debt or debt payments in exchange for a commitment from the
debtor country to protect specific natural resources. For example, many
countries that are home to forest elephants are highly indebted and could
substantially benefit from a debt-for-nature swap. The amount of debt
relief is determined by the value of the elephants’ services, using market
prices. The money the countries save would be devoted to elephant
conservation but could also facilitate the creation of public-private
partnerships that help build markets, such as tourism and insurance, around
investing in and protecting the elephants. These markets would provide
steady employment and income in local communities, leading to ownership and
sustainability of conservation efforts.
Nongovernmental organizations and international financial institutions
could provide the necessary capacity development for public-private
partnerships and insurance markets centered around natural resources. The
example of debt-for-nature swaps shows that valuing nature for its benefits
can support a virtuous cycle, directing investment and enterprise along a
more regenerative and sustainable path.
The COVID-19 pandemic, attributed to a virus that originated in a local wet
market, demonstrates that nature can have a macrocritical impact of global
proportions. A worldwide alarm has been sounded, calling for a course
correction. Human destruction of the natural world not only leads to severe
volatility in our economic systems but threatens our very existence. On the
other hand, vibrant, intact ecosystems that include healthy populations of
forest elephants and great whales, mangroves, and sea grass are vivid
examples of how valuing and investing in the protection of nature can
generate a more sustainable blue-green economy, help mitigate climate
change, and realign economies toward inclusive and nature-friendly economic
growth.