Leveraging IMF Reserves: A Biodiversity Boost for Developing Nations

Mexico's Environment Secretary Alicia Barcena advocates for allowing developing countries to use the International Monetary Fund's unused special drawing rights from wealthier nations to fund biodiversity efforts. She highlights the importance of fiscal liquidity without accruing debt and supports stronger protection for environmental defenders in Latin America.

The new Environment Secretary for Mexico, Alicia Barcena, has proposed a strategic financial maneuver that could benefit developing countries in their efforts to protect biodiversity. She suggests that these nations be permitted to access unused special drawing rights (SDRs) from the International Monetary Fund, typically left untapped by wealthier countries, to support environmental initiatives.

During the United Nations COP16 biodiversity summit in Colombia, Barcena underscored the value of SDRs in providing fiscal liquidity without generating additional debt. She emphasized that directing these resources towards safeguarding natural ecosystems could be a game-changer for poorer nations. Barcena also praised a debt-for-nature swap proposal by Colombian President Gustavo Petro, asserting that such programs would aid regional adaptation and environmental restoration.

Moreover, Barcena called for the robust enactment of the Escazu Agreement, a regional pact focused on bolstering protections for environmental activists in Latin America. Stressing the urgency of preemptive measures, she highlighted findings from Global Witness that identify Latin America as the deadliest region for environmental defenders, where many face fatal risks annually.

(With inputs from agencies.)