Debt swap to save forests

The US government has launched an initiative on cancelling bilateral debt owed by developing countries with significant tropical forest cover. In return, the governments that receive debt write-offs will implement forest conservation measures agreed with US State Department officials. Announcing the initial funding, David Sandalow, US assistant secretary of state for oceans, environment and science, said half a dozen eligible countries had already applied and one application, by Peru, had so far been accepted.

Sandalow cited the pioneering debt initiative, authorised under the US Tropical Forest Conservation Act 1998, as one of a dozen measures through which governments could help conserve the world’s forests. Others proposals included applying environmental standards before providing export finance to forestry companies; reducing or cancelling government subsidies that support over-logging; and investing in research to improve agricultural productivity in the developing world.

Polly Ghazi

US State Department, +1 202 647 4000

14 October 2001

Polly Ghazi