Debt-for-nature swaps, which were first introduced by Credit Suisse three years ago, are becoming more popular on Wall Street. These financial instruments aim to refinance government debt while also supporting sustainable projects, aligning financial interests with environmental goals.

Initially, only Credit Suisse and Bank of America Corp. facilitated such swaps, but now at least five additional banks are exploring similar arrangements, indicating a growing interest in this niche market. This shift reflects a growing recognition of the potential for financial products to contribute to sustainability efforts while also addressing fiscal challenges faced by governments.