One of the issues that Larry Elliott lists as a distraction from the looming crisis of developing country debt (The next global economic emergency? Deepening debt in the developing world, 17 October) could in fact be part of the solution.
Research I’ve conducted with colleagues at the International Institute for Environment and Development (IIED) demonstrates that linking debt to climate and nature programmes could offer a lifeline to highly indebted countries while also addressing the climate and nature crises.
This approach has already been tried and tested in the Seychelles, which raised finance for climate and nature through a debt swap to support the creation of marine-protected areas covering 30% of its exclusive economic zone, supporting small-scale fishers and protecting biodiversity.
G20 leaders need to embrace this innovative financing to create an international initiative on debt, climate and nature that will support an inclusive and green post-Covid recovery.
Paul Steele
Chief economist, International Institute for Environment and Development
