Debt swaps linked to nature and climate action are emerging as a tool for developing countries to alleviate their external debt burden. However, concerns are raised about the lack of transparency and limitations imposed by creditors, which may hinder the autonomy of these countries in implementing their own development plans.
This paper seeks to present key principles to guide the structuring and implementation of high-integrity debt swaps to ensure that debt swaps not only reduce debt, but also respect the rights of communities and promote climate and financial justice. The need for an equitable distribution of benefits and the limitation of conditionalities that may affect the sovereignty of debtor countries is emphasized. It is about building a future where sustainability and social justice go hand in hand.