Debt-for-nature swaps: A case study of Gabon

Originating in the late 1980s, debt-for-nature swaps have recently gained increased relevance, particularly for emerging market countries facing high debt levels. Recent transactions, such as those in Seychelles, Belize, Barbados, Ecuador, and Gabon, have primarily focused on marine protection. Although these swaps offer potential benefits, they also present challenges, such as high transaction costs, lengthy negotiation processes, and risks like bluewashing because of the lack of standardized oversight. In this paper, using Gabon's recent example, we discuss the weaknesses and limitations of debt-for-nature swaps.