Colombia: How rating agencies complicate • Table.Briefings

Colombia campaigns for debt-for-nature swaps. However, because rating agencies see the country’s climate policy critically, the government recently rejected several offers for such swaps. Shortly before the World Bank’s spring meeting, this example shows the obstacles to debt-for-nature swaps.

Since taking office three years ago, Colombia’s President Gustavo Petro has been campaigning to swap his country’s debt for nature conservation and climate action. Now, new difficulties are emerging: The example highlights the obstacles for debt-for-nature swaps. However, experts see them as a promising instrument for mobilizing financial resources for international climate action. Progress could be made at the World Bank and International Monetary Fund (IMF) spring meeting on April 21.

Colombia: How rating agencies complicate debt-for-nature swaps

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