Current perspectives on debt-for-nature swaps: moving from exploratory to empirical research

Debt-for-nature swaps (DNS) have re-emerged as vital tools to address the dual challenges of sovereign debt crises and environmental degradation, gaining renewed attention post-COVID-19. Originating in the 1980s, these financial instruments now encompass broader mechanisms, including innovative participation by nontraditional creditors like China and bondholders. This review synthesizes evolving DNS scholarship into four thematic areas: structural analysis, effectiveness evaluation, political economy considerations, and scalability potential. While current studies largely focus on exploratory concepts, the article advocates for empirical research to understand DNS’s practical outcomes, barriers, and socioeconomic impacts. Multidisciplinary approaches are emphasized to explore DNS’s capacity to simultaneously enhance debt relief, conservation, and development outcomes, aligning with global sustainability goals. Future research should prioritize empirical evaluations, deeper creditor–debtor analyses, and scalable frameworks to optimize DNS as a tool for sustainable development.