Colombia is negotiating a debt-for-nature swap with Germany to finance its $40 billion plan to abandon fossil fuels and protect the environment, Foreign Minister Luis Gilberto Murillo told Reuters.
Last month, Colombia launched a new investment portfolio for its climate adaptation plans, which hopes to attract some $40 billion.
Murillo said on Monday that Colombian President Gustavo Petro and German Chancellor Olaf Scholz had been in talks for some kind of debt-for-nature swap with Germany for a long time.
Debt-for-nature deals are an increasingly popular way for emerging economies to finance conservation through a process in which bonds or loans are purchased and replaced with cheaper debt, putting the savings toward environmental protection.
Murillo did not want to put the possible exchange with Germany in dollars.
Colombian Environment and Sustainable Development Minister Susana Muhamad told Reuters last week that the country was seeking the $40 billion from a combination of sources, including private sector investments, lines of credit from public banks and other instruments.
Murillo also called on the international community to do more to support developing countries’ responses to the climate crisis, adding that Colombia’s high debt and high cost of debt makes it difficult to finance climate initiatives.
He said the International Monetary Fund should increase environmental financing, calling for action similar to that in the response to the COVID-19 pandemic, when it made available $650 billion in IMF foreign exchange to boost global liquidity.
Connect with the Voice of America! Subscribe to our channels YouTube, WhatsApp and to the newsletter. Turn on notifications and follow us on Facebook, x and instagram.
Add Comment