Here’s How They’re Swapping Debts with Nature

A refinancing project has been set up to swap the Bahamas’ external commercial debt for nature, helping the Caribbean nation improve ocean conservation and manage its Marine Protected Areas (MPAs).

“Since 1958, The Bahamas has led in ocean conservation with the establishment of the Exuma [Cays] Land and Sea Park [marine reserve] and now, our nation is taking another ambitious step with an economic program that promotes ocean conservation and benefits local communities,” explains Rochelle Newbold, Director, Climate Change and Environmental Advisory Unit of The Government of The Bahamas. “By strengthening the protection and management programs of the Marine Protected Area system we will safeguard livelihoods, boost the economy, and contribute to global ocean protection goals.”

The government of The Bahamas, The Nature Conservancy, the Inter American Development Bank, and other financial partners have launched The Bahamas debt conversion project – a Nature Bonds project – to buy back $300 million of its external commercial debt. The new competitively-priced $300 million loan will unlock an unexpected $124 million of new cash funding – plus an estimated $8 million of endowment investment returns – for marine conservation over the next 15 years without adding to the countrycountry’sMore than 17% of The BahamasBahamas’ore environment is designated as part of its National Protected Areas System. Mpas comprise almost 6.8 million hectares of the ocean. Through five Nature Bonds projects – The Bahamas is the latest after Seychelles (2016), Belize (2021), Barbados (2022), and Gabon (2023) – some 238 million hectares of the ocean is better protected, a total of $1.5 billion of debt has been refinanced, and more than $535 million of new funding for conservation are expected to be generated.