U.S., Indonesia in $35m debt-for-nature swap deal – EnviroNews

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Conservation International announced on January 15, 2025, that the debt-for-nature swap between the United States of America, the Republic of Indonesia and several non-governmental organisations (Conservation International, Yayasan Konservasi Cakrawala Indonesia, Yayasan Konservasi Alam Nusantara, The Nature Conservancy) has officially been closed and $35 million will now begin to flow toward the protection and restoration of Indonesia’s highest priority coral reef ecosystems.

First signed in July 2024, this debt-for-nature swap marks the first time the Tropical Forest and Coral Reef Conservation Act will be used to drive funding specifically to coral reefs. This historic commitment will now benefit the conservation of two of the most biologically diverse reefs on the planet – the Bird’s Head and Lesser Sunda-Banda seascapes, home to iconic animals like turtles, sharks, whales and dolphins as well as hundreds of coral species. These underwater networks of sea life not only help keep the coral reefs and greater ocean healthy, but they also provide food security, storm surge protection, livelihoods and economic opportunity for the region.

Over the next nine years and in place of existing debt commitments, Indonesia will redirect the $35 million to establish a conservation fund that will issue grants to civil society organisations and support projects designed to restore and maintain the country’s reefs. This effort will also benefit the Indigenous Peoples and local communities that rely on healthy coral reef ecosystems for sustenance and livelihoods.

For more than 35 years, debt-for-nature swaps have played an integral role in financing global conservation efforts, allowing countries to restructure their debt in a way that benefits nature and people. Conservation International brokered the first in Bolivia in 1987. To date, Indonesia has participated in four swaps with the US, three previously and this historic global first to conserve and protect coral reefs which are under threat globally from pollution, ocean acidification and record-breaking temperatures.