Coercive Greening: debt-for-sea

image from wikipedia

The Seychelles is an archipelago of 115 mostly tiny islands, whose collective area, at 460 sq km, is only about a third of London’s. But the country’s granite islands and coral atolls sit within an exclusive economic zone of 1.4m sq km. It is here, in the ocean, that conservationists are working on a new way for small countries to protect their marine environment.

The Seychelles’ economy relies on tourism and tuna. These depend on healthy seas. But paying for conservation is a challenge, says Didier Dogley, the environment minister. So last year the country struck a deal with The Nature Conservancy (TNC), an American NGO. It promised to protect 30% of its waters by 2020—half of this area will be off-limits to fishing. In return, TNC bought up $21.6m of debt owed by the Seychelles to the Paris Club of international creditors. It will allow the country to pay it back at a lower interest rate over a longer period.

The complex deal took four years to thrash out. Still, not everyone is happy. Some fishermen worry that their favourite spots will become no-go zones….The blue economy is a new idea, but like the green economy it is catching on. The World Bank is backing a planned $15m “blue bond” for the Seychelles, which will fund sustainable fisheries. TNC is planning its own blue bonds, which would underpin deals similar to the one it agreed with the Seychelles. “I can see doing a billion dollars of these deals in a decade,” says Rob Weary, TNC’s financial guru…Already Mauritius is looking to copy parts of the Seychelles deal. Madagascar, Mozambique, Tanzania and the Comoro Islands have also shown interest.

Excerpts from The Seychelles: Debt Relief for Dolphins, Economist, Sept. 9, 2017

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