Debt swaps related to nature or climate goals have been on the rise in recent years, touted as a solution to the growing debt crisis and the severe lack of climate finance for vulnerable nations. However, while they seem attractive, these swaps often fall short of their promises, creating more problems than they solve.
While the focus on debt swaps has primarily been on nature and conservation, there is also a growing trend toward debt swaps that free up some resources for renewable energy.
The world needs an estimated $4.5 trillion annually by 2030 to transition to renewable energy at the scale needed to meet global climate goals. Yet the amount of climate finance actually delivered remains significantly lower, with rich countries providing around $116 billion to lower-income countries in 2022, meeting their deeply inadequate and arbitrary $100 billion per year promise for the first time, two years late and mostly via loans.
About the authors
Karabo Mokgonyana
Karabo Mokgonyana is a renewable energy campaigner and legal expert specializing in climate change mitigation and energy policy in Africa. With a background in international law, they work at Power Shift Africa, advocating for sustainable energy transitions. Their research focuses on equitable energy systems and climate justice.
Tess Woolfenden
Tess Woolfenden is a policy adviser at Debt Justice where she works on the links between debt and the climate crisis, and the colonial and neocolonial nature of global south debt alongside allies across the world.
