Debt for Nature Agreements to Conserve Guatemala’s Forests

The Governments of the United States of America and the Republic of Guatemala, together with The Nature Conservancy and Conservation International Foundation, concluded agreements reducing Guatemala’s official debt to the United States and generating $24 million to conserve tropical forests in Guatemala. The Government of Guatemala will commit these funds over the next 15 years to support grants to non-governmental organizations and other groups to protect and restore the country’s important tropical forest resources. The agreements were made possible through contributions of over $15 million by the U.S. Government under the Tropical Forest Conservation Act of 1998 and $2 million from Conservation International and The Nature Conservancy.

The funds will help conserve Guatemala’s high altitude cloud forests, rain forests, and coastal mangrove swamps, which are home to hundreds of species of songbirds and waterfowl that migrate between the United States and Guatemala, as well as many rare and endangered species, including the resplendent quetzal bird, jaguars and margays.

The Tropical Forest Conservation Act provides opportunities for eligible developing countries to reduce concessional debts owed the United States while generating funds to conserve their forests. The agreements with Guatemala mark the 10^th Tropical Forest Conservation Act pact concluded under the Bush Administration, following agreements with Belize, Colombia, El Salvador, Jamaica, Paraguay, Peru, The Philippines, and two agreements with Panama. These agreements, together with an agreement concluded with Bangladesh in 2000, will generate more than $125 million over 10-25 years to protect tropical forests. The agreements with Guatemala represent the largest pact in the history of the U.S. Government’s program under the Tropical Forest Conservation Act.

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