$24 Million of Guatemala's Debt Now Slated for Conservation
The Nature Conservancy has facilitated one of the largest debt-for-nature swaps in history -- and scored a significant victory for tropical forest conservation in Guatemala in the process.
Under the agreement, the United States will forgive $24 million in debt owed to it by Guatemala. This $24 million will instead be used to finance forest conservation in Guatemala over the next 15 years -- efforts that will protect crucial habitat for some of the most abundant biodiversity on the planet.
Magnificent Forests in Peril
Guatemala has a rich cultural heritage and unique biodiversity. Jaguars, ocelots, scarlet macaws, and howler monkeys make their home in the country's amazing tropical forests, which are also a refuge for rare and endangered species. In addition to the country's natural beauty, Guatemala is also home to breathtaking ancient Mayan ruins.
The main threats to Guatemala's tropical forests are improper agricultural practices, natural disasters and large-scale development projects. The $24 million will be distributed from a Conservation Trust Fund and will be used to conserve Guatemala's magnificent forests in these areas:
- The Maya Biosphere Reserve is the Guatemalan portion of the Maya Forest (or Selva Maya), a critical habitat for countless species. The reserve comprises 10 percent of Guatemala's total land area. Both Sierra del Lacandon National Park and Tikal National Park are in the reserve. The Maya reserve is a haven for several endangered species such as the jaguar and the scarlet macaw. The forest is threatened by improper agricultural practices and extensive natural resource extraction.
- The Motagua/Polochic System is one of the most biologically important regions in Guatemala, with many species found nowhere else in the world. The Sierra de Las Minas Biosphere Reserve in this system is home to 80 percent of Guatemala's biodiversity. Deforestation, illegal hunting and improper agricultural practices are the main threats to this area.
- The Sierra Madre Volcanic Chain also known as the "islands of biodiversity," is a critical migratory bird route as well as home to many endemic plant and animal species. In addition, Lake Atitlan -- located in the chain -- is a refuge for several species as well as an important tourist destination. The lake is threatened by development, deforestation and forest fires.
Debt-for-nature swaps are an innovative mechanism to sustain long-term conservation efforts in countries with rich tropical forests. Under the Tropical Forest Conservation Act of 1988, eligible countries agree to use their debt payments to finance tropical forest conservation in their countries.
The Guatemala deal is the largest debt-for-nature swap yet under the Tropical Forest Conservation Act and the fifth swap facilitated by the Conservancy. With this debt-for-nature swap, the Conservancy will be able to magnify its conservation efforts in Guatemala.
The Conservancy raised $1 million in the United States toward the deal -- $500,000 of which was donated by American Electric Power and $200,000 by the Conservancy's Maine program. The U.S. government is providing $15 million towards the agreement.
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Comments: 11
The key strategy providing accountability is embedded in the debt-for-nature deal.
A committee that includes a representative from The Nature Conservancy, Conservation International, the United States Agency for International Development (USAID), The Guatemalan National Protected Areas Council has been organized to administer the newly created Conservation Trust Fund. This transparent committee will provide permanent oversight and accountability over the funds.
The Nature Conservancy has also been involved in debt swaps in Panama, Jamaica and Belize and these are moving smoothly. In Belize, the debt-for-nature funds helped purchase 23,000 acres of land that the Conservancy is helping protect.
For more information, you can learn how debt-for-nature swaps protect tropical forests.
I remember the wild orchards growing everywhere. How pretty they were.
Thanks again for sharing this.
It is important that the countries performing debt-for-nature swaps get to keep their money in the country and invest it in their economy.
An incentive is the country gets a small discount via the Tropical Forest Conservation Act trust fund rather than what is paid to the U.S. Government. Also, this money paid to the trust fund is paid is paid in local currency rather than U.S. dollars.