Bahamas frees up over $120M to combat climate change in ‘nature-for-debt’ swap

[JACK AYLMER]

THE BAHAMAS IS FREEING UP TENS OF MILLIONS OF DOLLARS IN FUNDING TO COMBAT CLIMATE CHANGE THROUGH A DEBT SWAP FINANCED BY STANDARD CHARTER AND BACKED BY PRIVATE INVESTORS.

THE NATURE-FOR-DEBT SWAP INVOLVES BUYING BACK EXISTING DEBT THROUGH A NEW LOAN WITH REDUCED INTEREST RATES.

IT’S EXPECTED TO UNLOCK AROUND 124 MILLION DOLLARS FOR MARINE CONSERVATION PROJECTS TO PROTECT THE NATION’S TURQUOISE OCEAN OVER THE NEXT 15 YEARS.

AN ENDOWMENT FUND WILL THEN SECURE FUNDING FOR PROJECTS ONCE THOSE 15 YEARS ARE UP. 

MONEY FROM THE SWAP WILL BE USED TO RESTORE TREES AND HABITATS DAMAGED BY HURRICANE DORIAN IN 2019… AND TO PROTECT A MARINE AREA LARGER THAN THE GULF OF MEXICO.

OFFICIALS SAY THE PROTECTIONS WILL ALSO ENSURE COMMERCIAL FISHERIES SURVIVE A CHANGING CLIMATE, AN INDUSTRY VITAL TO THE ECONOMY OF THE NATION.

FOR INSTANCE, THE SPINY LOBSTER FISHERY REPORTEDLY GENERATES AROUND 100 MILLION DOLLARS A YEAR FOR THE ISLAND NATION ALONE. 

THE BAHAMAS JOINS THE LIKES OF BELIZE, GABON AND BARBADOS WHO HAVE SIGNED SIMILAR DEALS…  

BUT THIS IS REPORTEDLY THE FIRST TIME A PRIVATE INVESTOR IS PROVIDING CREDIT INSURANCE FOR THE EFFORT.

IT’S ALSO THE FIRST ONE TO INCLUDE CLIMATE CHANGE MITIGATION COMMITMENTS, ACCORDING TO THE NATURE CONSERVANCY, WHICH IS ONE OF THE GROUPS HEADING THE PROJECT. 

THE CARIBBEAN ISLAND HAS A STRONG HISTORY OF PROTECTING NATURAL HABITATS WITH MORE THAN 17 PERCENT OF ITS COASTAL WATER PROTECTED, COVERING MORE THAN 16 MILLION ACRES OF THE WORLD’S OCEAN.

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FOR STRAIGHT ARROW NEWS– I’M JACK AYLMER.