{"id":46949,"date":"2022-08-10T10:53:41","date_gmt":"2022-08-10T09:53:41","guid":{"rendered":"https:\/\/climatechangenews.com\/?p=46949"},"modified":"2022-08-10T10:54:35","modified_gmt":"2022-08-10T09:54:35","slug":"colombias-new-president-debt-swap-protect-amazon-rainforest","status":"publish","type":"post","link":"https:\/\/www.climatechangenews.com\/2022\/08\/10\/colombias-new-president-debt-swap-protect-amazon-rainforest\/","title":{"rendered":"Colombia\u2019s new president calls for debt swap to protect the Amazon"},"content":{"rendered":"

Colombia\u2019s recently elected president, Gustavo Petro, is proposing a debt for nature swap to protect the Amazon rainforest, which is nearing a tipping point<\/a> after decades of deforestation.<\/strong><\/p>\n

Petro, a former rebel and the country\u2019s first left wing president, was sworn into office on Sunday 7 August in a historic shift for the South American country.<\/span><\/p>\n

In his first speech as president, he addressed the need to mobilize resources to protect Colombia\u2019s rainforests. In 2022, the country experienced the <\/span>highest<\/span><\/a> fiscal deficit in recent years and its external debt <\/span>accounted<\/span><\/a> for half of the country\u2019s GDP.<\/span><\/p>\n

\u201cI propose to humanity to exchange external debt for internal expenses to save and recover our jungles, forests and wetlands,\u201d said Petro during his inauguration speech.<\/span>\u00a0<\/span><\/p>\n

As the Covid-19 pandemic led to an <\/span>increase in debt<\/span><\/a> in Latin America, several nations turned to debt swaps to meet their climate goals. <\/span>\u00a0<\/span><\/p>\n

Under this scheme, developing countries get their debts cancelled or reduced in exchange for commitments to finance green projects.<\/span><\/p>\n

OECD:<\/strong> Rich countries fall $17bn short of 2020 climate finance goal<\/a><\/p><\/blockquote>\n

Ecuador, for example, significantly expanded the Gal\u00e1pagos marine reserve and <\/span>financed it<\/span><\/a> through this mechanism. Colombia\u2019s previous government <\/span>called<\/span><\/a> for a similar measure in 2021, but didn\u2019t announce new agreements.<\/span><\/p>\n

After the pandemic and the war in Ukraine exacerbated debt in developing countries, debt for nature swaps \u2014if done appropriately\u2014 can become a realistic opportunity to get relief, said Sejal Patel, environmental economist at the International Institute for Environment and Development.<\/span><\/p>\n

\u201cIf they\u2019re structured well, then debt swaps can be a way to redirect payments to the national climate and nature objectives,\u201d said Patel.<\/span><\/p>\n

At the same time, climate funds have not flowed as needed. <\/span>Analysis<\/span><\/a> by the Organization for Economic Cooperation and Development (OECD) showed developed countries fell $17 billion short of a target to mobilise $100 billion in climate finance annually by 2020.<\/span><\/p>\n

<\/div>\n
<\/div>\n<\/blockquote>\n

There are precedents in the early 2000s where debt swaps made by the United States where counted as climate finance, Patel said. For this scheme to work, however, there must be accountability on both sides. <\/span><\/p>\n

The projects selected by developing nations should align with their national climate plans, and they should also provide transparency on how those plans are made, the IIED economist said.<\/span> Creditors should not impose onerous conditions and should allow flexibility to the developing countries, she added.<\/span><\/p>\n

In countries like Colombia, climate action has been limited by the dire economic situation, said Jhoanna Cifuentes, a local activist and co-founder of the local climate NGO Climalab. <\/span>\u00a0<\/span><\/p>\n

The country committed to a 50% emissions reduction by 2030, most of which is conditioned to external financing. To achieve this, the country pledged to reduce deforestation from the current 174,000 hectares per year to 50,000 in 2030.<\/span>\u00a0<\/span><\/p>\n

IMF\u2019s resilience fund<\/strong> \u2018out of reach\u2019 for some nations in need<\/a><\/p><\/blockquote>\n

Locating fresh funds to achieve this will be part of the challenge, Cifuentes said. \u201cThere is a big climate finance limitation in Colombia, as in the rest of the region. Right now, Colombia depends mostly on the fossil fuel industry,\u201d she said. Crude oil and coal are the country’s biggest exports<\/a>.<\/span><\/p>\n

The US, one of the region\u2019s top creditors, shared positive views of the debt swap idea during a <\/span>press conference<\/span><\/a> on Monday. USAID administrator Samantha Power said the new government\u2019s commitments to environmental action represented a \u201chuge opportunity\u201d.<\/span><\/p>\n

In addition to the debt cancellations, Petro called for a \u201cglobal fund to save the Amazon\u201d and said \u201cspeeches won\u2019t save\u201d the rainforests.<\/span>\u00a0<\/span><\/p>\n

The South American country, home to about 7% of the Amazon basin, the largest rainforest on the planet, was one of the signatories of the <\/span>COP26 pledge<\/span><\/a> to end deforestation by 2030.\u00a0<\/span>\u00a0<\/span><\/p>\n

However, Colombia\u2019s previous approach to control deforestation <\/span>through military force<\/span><\/a> bore little fruit. The country <\/span>lost<\/span><\/a> an area of forest larger than the city of London each year between 2017 and 2020.<\/span><\/p>\n

Argentina<\/strong> pitches green debt swap, with the Pope\u2019s blessing<\/a><\/p><\/blockquote>\n

Instead, militarization brought a spike in violence in rural areas, which has made Colombia the deadliest country for environmental activists, said Cifuentes.<\/span><\/p>\n

The Amazon basin, in particular, has been a major hotspot for deforestation in the country. More than half of Colombia’s forest loss in 2020 occurred in the Amazon region, official data shows.<\/p>\n

Petro, on his part, proposed a more community-centered approach during his inauguration. \u201cWe can turn the entire population of the Colombian Amazon into a population that cares for the forest, but we need the world’s funds to do it,\u201d he said in his speech.<\/span><\/p>\n

The Colombian National Indigenous Organization \u2014a coalition of 50 indigenous associations in most of the country\u2019s departments\u2014 welcomed the new government\u2019s approach and said in a <\/span>statement<\/span><\/a> they \u201cfirmly believe that the new social pact must combat the legacy of exclusion\u201d towards indigenous communities.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"\u201cWe can turn the entire population of the Colombian Amazon into a population that cares for the forest, but we need the world’s funds to do it,\u201d says Gustavo Petro","protected":false},"author":88,"featured_media":46950,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[3863,208,4228],"tags":[3884,1225,4739],"coauthors":[4904],"class_list":["post-46949","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","category-climate-finance","category-climate-justice","tag-climate-finance","tag-colombia","tag-debt-swap","type-news"],"acf":[],"yoast_head":"\nColombia\u2019s new president calls for debt swap to protect the Amazon<\/title>\n<meta name=\"description\" content=\"Colombia's new president, Gustavo Petro, took office last weekend, receiving a country with high fiscal deficit and debt reaching 50% of GDP.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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