U.S. Forgives $35 Million Indonesian Debt for Coral Reef Preservation

The U.S. has agreed to forgive $35 million of Indonesia's debt over nine years in exchange for coral reef restoration and conservation. This debt-for-nature swap aims to protect biodiversity in the Coral Triangle, targeting areas like Bird's Head and Lesser Sunda-Banda Seascape, which are severely impacted by climate change.

The U.S. has agreed to forgive $35 million of Indonesian debt over the next nine years in exchange for the Southeast Asian country restoring and preserving coral reefs, which experts deem the world's most biodiverse marine regions, the U.S. Treasury announced on Monday.

Climate change is raising sea temperatures globally, putting coral reefs under immense threat. Data from May indicated that nearly two-thirds of coral reefs have experienced significant heat stress over the past year, causing widespread bleaching. The agreement is the fourth 'debt-for-nature' swap between the two countries since 2009 and will fund at least 15 years of conservation efforts in the 'Coral Triangle'.

The Bird's Head Seascape and Lesser Sunda-Banda Seascape, targeted by this agreement, span hundreds of thousands of hectares and contain habitats for over three-quarters of all coral species and more than 3,000 types of marine life. Indonesia's 5.1 million hectares of coral reefs constitute 18% of the world's total, but this year's bleaching events have severely impacted them.

(With inputs from agencies.)