LONDON: In Kenya, the coronavirus pandemic has dried up eco-tourism, cutting off sources of funding that help protect wildlife and pay an income to communities working to preserve nature.
At the top of the list are Cape Verde – an island nation off the coast of West Africa – Vietnam, Honduras, Kenya, Nicaragua and Papua New Guinea. Most of the US$8 trillion in debt owed by developing nations in 2019 – before the coronavirus crisis – is held by wealthy countries in the Organisation for Economic Co-operation and Development, China and large asset managers, Steele said.
Asset managers facing debt write-offs as a result of the coronavirus-linked downturn might opt to put them to productive use – which could both support ailing economies and reduce the need for more debt relief in the future, Steele said. Similar agreements might particularly suit other small island developing states in the Caribbean or Pacific with large debt, high climate vulnerability and rich biodiversity, he said.In all the swaps, money would be made available for climate and nature protection under a"results-based" payment system, in which the debtor nation must do what it promises to obtain the debt relief, he said.