Debt-for-nature deals worth billions aimed at protecting vital ecosystems worldwide face uncertainty as key U.S. backing from the International Development Finance Corporation may wane under President Trump’s administration, risking delays or cancellations of major conservation projects.
Billions of dollars in debt-for-nature deals aimed at protecting critical ecosystems from Africa to Latin America face uncertainty or may need to be restructured due to concerns that key U.S. support could diminish under President Donald Trump’s administration. These agreements, which reduce a country’s debt in exchange for environmental conservation commitments, have gained momentum in recent years, with prominent projects involving the Galapagos Islands, coral reefs, and the Amazon rainforest.
The U.S. International Development Finance Corporation (DFC) has played a vital role, providing political risk insurance for more than half of these deals over the past five years, covering nearly 90% of the $6 billion in swapped debt. However, insiders reveal that several pending swaps are now uncertain, following criticism of the DFC’s climate efforts by incoming CEO Ben Black and U.S. government efficiency chief Elon Musk. While the exact value of these deals remains unclear, recent DFC-backed swaps have exceeded $1 billion each.
Neither the White House nor the DFC responded to inquiries about future involvement. A DFC official, speaking anonymously, confirmed that the agency stepped down earlier this year as co-chair of a global task force established in 2023 to expand debt swaps. Meanwhile, U.S. Treasury Secretary Scott Bessent has criticized multilateral lenders’ climate initiatives amid a broader U.S. withdrawal from the Paris Agreement.
Countries such as Angola, Zambia, and at least one Latin American nation now face the risk of having to modify or abandon their debt-for-nature swap plans due to this uncertainty. Angola’s Finance Minister Vera Daves de Sousa said the country, heavily indebted and home to ecosystems vital for endangered wildlife, has engaged with the DFC on two potential swaps — one focused on nature conservation and another on broader development goals like education. She acknowledged openness from the DFC, especially regarding the development swap, while emphasizing that both nature and development opportunities are important for Angola.
In Zambia, which had considered a swap linked to its national parks harboring a large percentage of Africa’s elephants, progress has stalled. Finance Minister Situmbeko Musokotwane confirmed they are not actively pursuing the swap but have not completely abandoned it.
Debt-for-nature swaps, which convert expensive government bonds into cheaper ones to generate funds for conservation, are seen as attractive options for smaller, highly indebted countries facing climate challenges. The International Institute for Environment and Development estimates that 49 of the world’s poorest nations could potentially swap a quarter of their combined $430 billion debt.
Given the current signals from Washington, experts advise these countries to reconsider reliance on the DFC and explore alternatives such as credit guarantees from multilateral development banks and private sector insurers, as demonstrated by the Bahamas last year. Historically, the DFC’s political risk insurance, which can cover up to $1 billion, has been essential for attracting buyers of lower-cost bonds by mitigating payment default risks.
Eva Mayerhofer of the European Investment Bank, which supported a 2024 Barbados swap, expressed uncertainty about who could replace the DFC’s role in regularly facilitating such debt conversions. The Inter-American Development Bank, involved in several recent swaps alongside the DFC, declined to comment on whether its projects were affected.
Stephen Liberatore of investment firm Nuveen, a major investor in debt swaps, noted that while alternative risk insurers could emerge, the impact on cost savings and conservation funding remains uncertain. He highlighted the key question: whether private entities can provide risk insurance at a comparable price to the DFC without reducing the amount of savings available for environmental protection.
Türkiye’s Defense Minister Yaşar Güler said cooperation between Türkiye and Azerbaijan is vital for regional peace and stability, highlighting their strong defense under the principle “Two states, one nation, one army.”
Tensions between Iran and Israel continue to escalate, with Tehran condemning Israel’s airstrikes and emphasizing its defensive stance.
Russian President Vladimir Putin said a peaceful resolution between Iran and Israel is possible if all sides are involved. He emphasized the need to respect Iran’s right to peaceful nuclear energy and ensure Israel’s security.
Russian President Vladimir Putin has stated that Moscow remains open to dialogue and negotiations on all issues, including Ukraine. He made these remarks during a traditional meeting with the heads of leading global news agencies held as part of the St. Petersburg International Economic Forum SPIEF
Putin Highlights Strengthening Russia-Vietnam Energy Ties at SPIEF
Türkiye’s Defense Minister Yaşar Güler said cooperation between Türkiye and Azerbaijan is vital for regional peace and stability, highlighting their strong defense under the principle “Two states, one nation, one army.”
The United States has relocated several military aircraft and naval vessels from key bases in the Middle East in anticipation of possible Iranian retaliation, according to two U.S. officials speaking anonymously to Reuters.
Russian President Vladimir Putin on Thursday refrained from commenting on the possibility of Israeli and U.S. forces targeting Iranian Supreme Leader Ayatollah Ali Khamenei, instead calling for restraint and dialogue as tensions continue to rise in the region.
Tensions between Iran and Israel continue to escalate, with Tehran condemning Israel’s airstrikes and emphasizing its defensive stance.
Türkiye’s Minister of National Defense Yaşar Güler announced that security measures along the borders have been increased due to recent developments at the Iranian border. Güler traveled to Van with high-ranking military officials to conduct inspections along the Iran border.
Peace is no longer a dream. It is a discussion. On the streets of Baku and Yerevan, it is also a question, of trust, of foreign interests, and of who truly wants it.
Israeli strikes have reportedly targeted areas near the residences of Iran’s Supreme Leader Ayatollah Ali Khamenei and President Masoud Pezeshkian, according to the New York Times, citing local witnesses.
Azerbaijan Airlines (AZAL) has cancelled certain flights scheduled for 13th and 14th June amid recent escalation of situation in the Middle East and the closure of airspace in several countries for security reasons.
Start your day informed with AnewZ Morning Brief: here are the top news stories for June 17th, covering the latest developments you need to know.
The 2025 G7 Leaders’ Summit was held June 15–17 in Kananaskis, Alberta, under Canada’s presidency. Prime Minister Mark Carney framed the meeting around priorities of protecting communities, energy and climate security, the digital transition, and future partnerships.
Egypt’s Foreign Minister Badr Abdelatty and Chinese Foreign Minister Wang Yi discussed the escalating Middle East tensions and stressed the need for urgent de-escalation and diplomatic efforts to prevent further conflict.
At the second China-Central Asia Summit held in Astana, the capital of Kazakhstan, China and five Central Asian countries signed the "Treaty of Eternal Good-Neighborliness, Friendship, and Cooperation," establishing a new legal foundation for strategic partnership.
Smoke rises over Tehran as Israeli airstrikes and Iranian missile attacks push regional tensions to the brink. Dozens of civilian casualties have been reported on both sides.
Federal Reserve Chair Jerome Powell warned that interest rate forecasts may change based on future data and highlighted expected inflation growth in the coming months.
The United States has relocated several military aircraft and naval vessels from key bases in the Middle East in anticipation of possible Iranian retaliation, according to two U.S. officials speaking anonymously to Reuters.
Türkiye’s Defense Minister Yaşar Güler said cooperation between Türkiye and Azerbaijan is vital for regional peace and stability, highlighting their strong defense under the principle “Two states, one nation, one army.”
The United States has relocated several military aircraft and naval vessels from key bases in the Middle East in anticipation of possible Iranian retaliation, according to two U.S. officials speaking anonymously to Reuters.
Russian President Vladimir Putin on Thursday refrained from commenting on the possibility of Israeli and U.S. forces targeting Iranian Supreme Leader Ayatollah Ali Khamenei, instead calling for restraint and dialogue as tensions continue to rise in the region.
Tensions between Iran and Israel continue to escalate, with Tehran condemning Israel’s airstrikes and emphasizing its defensive stance.
Türkiye’s Minister of National Defense Yaşar Güler announced that security measures along the borders have been increased due to recent developments at the Iranian border. Güler traveled to Van with high-ranking military officials to conduct inspections along the Iran border.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment