The U.S. has agreed to take $21 million in Brazilian debt and convert it to conservation dollars to be used by the Brazilian government to protect the endangered rain forests and ecosystems.
The debt for nature swap, a new form of eco-finance, originated under the 1998 U.S. Tropical Forest Conservation Act. The U.S. has swapped approximately $240 million of loans owed into conservation dollars to be used throughout the world, mostly in Latin America.
Brazil will use the $21 million over the next five years, to conserve the very endangered tropical ecosystems of Atlantic, Cerrado and Caatinga and improve the quality of life for indigenous people living in the area. These rainforest areas are under threat from severe deforestation.