Portugal has signed an agreement to swap Cape Verde's debt for investments in an environmental and climate fund that is being established by the archipelago nation off West Africa's coast, Portuguese Prime Minister Antonio Costa said on Monday.
" swap deals are emerging in other countries and are part of attempts to resolve a dilemma faced by world leaders on how and who will foot the bill for actions taken to reduce the impact of climate change.
Costa said that initially, 12 million euros of debt repayments to the state scheduled until 2025 will be put in the fund, and ultimately "the entire amount of debt repayments" will end up there, allowing Cape Verde to invest in energy transition and the fight against climate change. He did not specify if debt to Portuguese companies was part of the deal, but expressed hope that companies "will also be involved in the various areas from energy efficiency, to the production of renewable energy" or storage of green hydrogen.
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