Debt for Climate Swaps: Lessons for Caribbean SIDS from the Seychelles’

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USD $10.00

Innovative financing mechanisms such as debt for climate swaps could
help Caribbean SIDS (small island developing states) fund their costly
climate adaptation programmes, as well as reduce their high public debt
levels. In 2016, Seychelles secured the world’s first debt for climate swap
deal with the Paris Club group of developed country creditors, aimed at
ocean conservation and climate resiliency. This article draws lessons for
Caribbean SIDS from the Seychelles’ experience. Patience and high-level
political commitment to the deal are necessary. Coordination between the
ministries of finance and the environment is critical. The scale and nature
of the conservation matters. Grenada is well-suited to undertake a debt for
climate swap but, unlike the case of Seychelles, the transaction should be
done with Grenada’s non-Paris Club group of developing country
creditors, starting with Trinidad & Tobago, its single largest bilateral
creditor.

Price: USD $10.00