White & Case Advises on Landmark Pro Bono US$35 Million Debt-For-Nature Swap with US and Indonesia to Protect Coral Reef Ecosystems

Global law firm White & Case LLP working pro bono has advised Conservation International on the signing of a groundbreaking debt-for-nature swap on July 3, 2024 by and amongst the United States, Indonesia and other leading environmental non-governmental organizations (NGOs) to protect Indonesia's precious coral reef ecosystems by redirecting US$35 million of Indonesia's debt into an investment in coral reef conservation over the next nine years.

The fourth agreement with Indonesia under the Tropical Forest Conservation Act (TFCA), reauthorized in 2019 as the Tropical Forest and Coral Reef Conservation Act (TFCCA), and the first focused primarily on coral ecosystems, marks a pivotal step in efforts to safeguard the biodiversity of one of the world's most vibrant marine environments.

"We are beyond delighted to have been a part of this monumental conservation deal under the TFCCA that takes great strides in restoring and preserving coral reefs in Indonesia, which are among the most biodiverse in the world," said Romas Garbaliauskas, Conservation International's Vice President for Conservation Finance Innovation and Replication.

This debt-for-nature swap will redirect funds initially earmarked for debt repayment into initiatives to support coral reef ecosystem conservation. The initiative underscores Indonesia's and the US's commitment to the importance of coral reefs and working together to address the pressing issue of protecting them.

"We are delighted to work with Conservation International once again, our partner since 2006, in contributing to this debt-for-nature swap, which will have a massive impact on conserving coral reefs that are increasingly under threat from climate change," said partner Martin Menski who, together with Suzanne Perry, led the Firm's team. "It's particularly rewarding to work on debt-swap deals that provide developing nations with the opportunity to reduce their external debt burdens through sustainability partnerships with the US that have a tangible impact on protecting and preserving a country's own natural environment," said Suzanne Perry.

Since 2006, White & Case has collaborated with Conservation International and other environmental groups on eight debt-for-nature swaps for a value of more than US$200 million for conservation. In 2023, White & Case also represented the Republic of Gabon in its pioneering US$500 million debt-for-nature conversion for marine conservation of the country's diverse coastal and marine ecosystem off the coast of west Africa, which is home to more than 120 of the world's most endangered or threatened marine species.

An oversight committee comprising representatives from the Indonesian and US governments, NGO swap partners and other civil society organizations will manage the funds generated from the debt-for-nature swap. The focus area of the activities will be Lesser-Sunda, Banda and Bird's Head Seascapes. Priorities include conserving globally threatened or endemic species that depend on coral reef ecosystems for critical habitat; protecting threatened or vulnerable coral reef ecosystems of high conservation value; promoting sustainable use of coral reef biodiversity; reducing the threat to, or increasing the connectivity between, coral reef areas; creating new protected areas as appropriate; and directly contributing to the improved management of existing public, private, municipal, or communal protected areas and their conservation targets.

The White & Case team was led by partners Martin Menski and Suzanne Perry (Washington, DC) and included associates Tom Robinson and Jack Hobbie (New York).

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