The Bahamas has announced a significant move to refinance $300 million of its external debt, with plans to allocate over $120 million towards marine conservation and climate change mitigation projects [6c9054ec]. This initiative, revealed on November 24, 2024, marks the fifth debt-for-nature swap globally and involves key partners such as The Nature Conservancy and the Inter-American Development Bank [6c9054ec]. The deal, facilitated by Standard Charter, is expected to free up approximately $124 million for conservation efforts over the next 15 years [6c9054ec].
With a total external debt of $5.7 billion, the Bahamas aims to protect vital ecosystems, including mangroves and seagrass, which play critical roles in carbon absorption and maintaining fisheries stability [6c9054ec]. This agreement is particularly noteworthy as it is the first of its kind to involve private investors and insurers, highlighting a growing trend in financing conservation efforts through innovative financial mechanisms [6c9054ec]. The Bahamas has a strong conservation history, with over 17% of its coastal waters already protected, underscoring its commitment to sustainability and environmental stewardship [6c9054ec].