Explain what is meant by a debt for nature swap

Debt for nature swap is a contract between countries that entails the debtor country allowing to counsel out its debt for the other country to apply its local currency to fund the local environmental conservation projects; it is usually in the environmental bonds form. From these deals, every party benefits, as the indebted country cuts its external debt, and the borrowing country improves its environmental conservation levels.

Although the amount of debt for nature swaps is limited to $79 million vs. $1.3 trillion external debt, it can positively impact environmental significance. For example, the government can use that amount to develop and enhance the protected areas, or some portions channeled towards training the park personnel. Using the money to create public goods related to the environment, like wildlife in the protected areas, or training the personnel in the parks, who offer guidance to the public, will increase public goods' production and efficiency.