The Bahamas has taken an unprecedented step by refinancing $300 million of its external debt to channel $120 million towards ambitious marine conservation projects. This initiative marks the world’s fifth debt-for-nature swap, aligning with global environmental goals.

By collaborating with The Nature Conservancy, the Inter-American Development Bank, and various financial partners, the Bahamian government aims to bolster biodiversity and climate objectives, enhancing the economy and livelihoods. A new loan from Standard Charter at reduced interest rates will facilitate the buyback of existing debt, leading to substantial conservation funding over the next 15 years.

Moreover, an endowment fund will ensure ongoing project financing. Comparable agreements in Seychelles, Belize, Gabon, and Barbados have significantly protected marine areas. The Bahamas continues its legacy of conservation, protecting over 17% of its coastal waters. This effort will aid in climate change mitigation, a crucial step for the storm-stricken archipelago still recovering from Hurricane Dorian.

(With inputs from agencies.)