The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookiesbefore using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Can debt-for-nature swaps be made to work?

One of the solutions to the looming sovereign debt crisis could be to link financing to natural capital or climate adaptation.


Finance for Biodiversity (F4B), an initiative from the Swiss-based Mava Foundation, has put forward a proposal for a nature performance bond (NPB), whereby a developing country could raise debt linked to nature-related outcomes.

Somewhere between a sustainability-linked bond and an outcomes-based bond such as a social impact bond, the NPB would have an interest rate, or even principal, that ratchets down as nature-based outcomes are met.

These could include biodiversity protection such as restoration of degraded forest and other landscapes, wetland management and species conservation and recovery, as well as climate change adaptation and mitigation, job creation, health and other social goals.

In September, Swiss Re published a report indicating that ecosystem collapse was threatening a fifth of the world’s countries – many of whose economies rely heavily on natural capital. Countries such as India and Nigeria were highlighted for having a high GDP dependency on biodiversity and ecosystem services.

Covid-19... has highlighted how a single country’s misstep with nature can bring the entire global system to a standstill

An NPB would address both biodiversity loss and climate adaptation, as well as ballooning deficits owing to Covid-19.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?