Wall Street’s new ESG money-maker promises nature conservation — with a catch

Large global banks plan for a new financial engineering experiment: debt relief in exchange for environmental protection.
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By Natasha White

Big global banks are eying some of the world's most fragile countries for a new experiment in financial engineering: debt relief in exchange for environmental protections.  

Called "debt-for-nature swaps," they present a tempting solution for the rising number of nations in distress, particularly those with ecosystems to protect. A country gets to avoid default and lower its debt burden, as long as it's willing to earmark some of the savings to salvage a coral reef, preserve a forest or build a wind farm, for example. Global investors get better returns and enhanced green credentials. Wall Street takes a cut. 

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