
The IF20 Religion and Environment Working Group’s 2025 policy brief frames the debt–climate nexus as an existential constraint on low-resource countries, where debt servicing displaces public services and climate response. Building from a proposed UN-centered debt framework, this article focuses on precautionary dangers inside SDG or national accounting instruments, since swaps and valuation-based relief can become predatory when they shift territorial and resource decision-making through external monitoring and data custody. FPIC and locally held data sovereignty through community banking custody must be treated as environmental security measures for the Global South before any new market architecture is allowed to form.
FPIC First: Environmental data is a security issue.
Free, Prior, and Informed Consent has to sit at the front of any environmental data regime that feeds national accounting and climate debt relief. FPIC is a jurisdictional safeguard protecting Indigenous and local authority over knowledge, measurement, and the downstream uses of that measurement in law, finance, and policy.
At this point, environmental data should be treated as strategic infrastructure. For much of the Global South, and especially, Indigenous Peoples, poor, peasant, displaced, and climate or conflict vulnerable at-risk communities, environmental data is a security issue. The UN system has adopted standards that make ecosystem accounts more legible to states, lenders, and markets. The United Nations Statistical Commission adopted the SEEA Ecosystem Accounting standard in March 2021. The United Nations Statistical Commission adopted the System of National Accounts 2025 as the updated international standard for national accounts. These changes matter because they widen the space for monetary valuation of ecosystems and natural resources inside recognized accounting frameworks. OECD guidance for implementing SNA 2025 explicitly frames “natural capital” as the aggregation of natural resources and ecosystem assets and discusses how depletion and related treatments shift net aggregates and policy.
To be absolutely clear, debt distress is the condition that makes this accounting shift politically dangerous. Global public debt is now near the US$100 trillion mark, and total global debt (public and private) is above US$250 trillion. UNCTAD documents a widening crisis in which a rising number of countries spend more on interest than on basic services and highlights the scale of public debt and servicing constraints. For the poorest and most climate-vulnerable countries, IIED reports debt repayments roughly double the climate finance they receive, which clarifies the fiscal trap that drives governments toward fast debt deals.
This is where “back door” strategies enter. We should not be surprised if the pictures of smiling children depicting friendly, trustworthy care is a Wall street wolf in disguise. These wolves might wear keffiyehs to look like relief. They may come wearing slippers and a climate march hoodie to discuss risk reduction. They might wear hard hats to inspire technical assistance. They might carry a tote bag to convey conservation. But they are all suits and these remain contractual top-down mechanisms. A country accepts a restructuring instrument that ties debt relief to environmental performance, monitoring, and governance conditions. Those conditions can outlast administrations and can shift real authority over land-use decisions, customary livelihoods, and data systems away from communities and toward external stakeholders.
Debt-for-nature swaps show the pathway. These swaps refinance or repurchase debt and link the fiscal savings to $100 billion conservation commitments overseen through dedicated governance vehicles and monitoring arrangements. Even when the conservation goals are sound, the governance questions remain. Reuters reporting on Ecuador’s Galápagos swap describes complaints from local groups alleging inadequate community engagement and transparency, alongside a formal review by the Inter-American Development Bank’s accountability mechanism. That dispute is not arbitrary and has been one of the core issues propelling the 2020 Intermerate Manifesto. It is the core risk. When environmental value becomes part of a debt contract, communities can be treated as an implementation detail rather than rights-bearing authorities.
FPIC is a safeguard addressing that risk because it governs the full lifecycle of data and valuation. UNDRIP requires states to consult and cooperate in good faith through Indigenous representative institutions in order to obtain FPIC for measures that may affect them, and it sets FPIC expectations around projects affecting lands, territories, and resources. ILO Convention 169 sets binding consultation requirements for ratifying states, including consultation through appropriate procedures and representative institutions regarding legislative or administrative measures that may affect Indigenous peoples directly. Together, these instruments frame FPIC as a governance threshold that cannot be waived in moments of fiscal distress.
However, it is necessary to add, that what is binding is only as good as what is enforceable, and the recent spate of impunity occurring amidst the grossest crimes against humanity, provides little confidence or what international law means when it comes to genocide or safeguarding against ecocide, as with U.S. unilateralism concerning deep seabed mining, or even the impunity of ICE agents, ignoring the constitutional rights of its citizenry.
An accounting shift will create new intermediary markets. That outcome is structural and predictable. Once states publish ecosystem accounts and embed them in planning and financing, there will be demand for baselines, monitoring, verification, and performance claims. Those claims will be organized into instruments that pay for restoration, watershed protection, biodiversity outcomes, and disaster-risk reduction. The market question is not whether claims will emerge. The market question is who controls the stack of measurements that defines the claims and who benefits from them.
If the measurement stack is controlled outside the Global South, then “natural capital” becomes just another layer of dependency. Control is exercised through proprietary models, remote sensing pipelines, audit standards, verification firms, platform custody, and dispute venues. A country can retain nominal sovereignty over territory while losing practical sovereignty over the numbers that govern policy space. SNA 2025 (chapter 35) and SEEA EA (Section D & E) adoption increases the likelihood that these numbers will be treated as official and comparable. This integration is weaponizable, and while its adoption could be a seismic reset for the global economy, considering there is literally zero discussion in the public space, and little attempt at embracing local data in local contexts or local markets, suggest that the impending reset is going to bypass those that are most in need of a reset.
Local data sovereignty needs custody. This is where practical initiatives like a community-bank becomes a serious institutional safeguard. Environmental data and stewardship data should be treated as collective assets held under fiduciary duty with explicit limits on alienation. A “community data bank” model should be literal, through community banks, credit unions, or public development-bank windows. It can also be implemented through legally chartered data trusts or cooperatives that use banking-grade custody rules and are accountable to communities and domestic public law. The function is the same. The institution holds the keys, enforces FPIC permissions, and blocks secondary uses that convert local data into external leverage.
This custody layer matters because regardless of broken contracts and agreements that might take place under FPIC, locally held data will provides communities with leverage. If communities cannot own local markets or initiatives, climate debt relief contracts can smuggle control through technical clauses.
For example, a contract can embed third-party monitoring that becomes permanent. A contract can route disputes to external arbitration that privileges investor claims. A contract can require data submission to vendor systems with derivative rights and restrictive licenses. A contract can include step-in rights that transfer implementation authority when targets are missed due to climate shocks…
As a precaution to another century of hegemony, these are not hypothetical instruments. They are common legal design patterns in contemporary finance. The difference here is that the subject is ecological governance, and the collateral logic is performed through “valuation” rather than title transfer. And to be clear, it is for us to define the value of our environment, our well being, and our bones, and if that value is sacrosanct, then that is for us to decide and to protect.
A Global South safeguard framework
Even beyond the rights of Indigenous Peoples, FPIC has to broadly apply to data collection, data storage, model design, baseline selection, verification rules, and any contract that monetizes or conditions debt relief on environmental metrics.
Environmental accounts used for national planning should be separated from monetized claims used in financial contracts. Planning accounts is public-interest infrastructure. Monetization should require an additional legal gate that includes FPIC and a domestic public-interest test. We need a multipolar framework that considers translocal or interglobal accounting, auditing, regulations, compliance, and enforcement.
Debt relief should be delinked from ecological collateralization. Debt restructuring is existential, yet it should not be purchased by converting ecosystems into long-run performance liens. UNCTAD’s debt diagnostics already show that servicing burdens are displacing basic services and development capacity (UNCTAD xx). Relief needs rules-based debt workouts and grant-based climate finance, with environmental accounting used to plan restoration and to document harms and reparative claims, rather than to securitize nature.
The G20 is the right venue to discuss this. We are in a shifting balance of power between the OECD and the BRICS economies, the multipolarity of BRICS+, is better leveraged to write new rules for the global economy and support the kinds of local data sovereign networks, for the future. BRICS+ are poised to defend against the Network State, and against a tyranny of Assets under Management.
Finally, Global South countries need compilation and verification capacity that prevents vendor dependence. The point is not to reject international standards. The point is to prevent international standards from becoming a channel through which external actors capture domestic policy. SNA 2025 and SEEA EA will be implemented unevenly. While they are within the United Nations, they are largely dominated by OECD members and policy directors.
Debt relief and environmental accounting can support poverty reduction and restoration. That outcome requires governance architecture. FPIC is the front gate; community data custody is the lock; and South-led standards implementation is the long-term defense.
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Disclosure: The writer is a member of the G20 Interfaith Forum (IF20) Environment Working Group. The views expressed in this article are his own and do not represent the positions of the Environment Working Group, the IF20, or any other IF20 participants.
Citations
International Monetary Fund. “Global Debt Remains Above 235% of World GDP.” IMF Blog, 17 Sept. 2025.
International Institute for Environment and Development. “World’s least developed countries spend twice as much servicing debts as they receive in climate finance.” IIED, 16 Oct. 2024.
International Labour Organization. “Indigenous and Tribal Peoples Convention, 1989 (No. 169).” OHCHR treaty text portal.
OECD. “Measuring Natural Resources in the National Accounts.” OECD Publishing, 18 Dec. 2025.
Office of the United Nations High Commissioner for Human Rights. “Consultation and free, prior and informed consent (FPIC).” OHCHR.
Reuters. “Debt-for-nature swaps could give $100 billion boost to climate fight, says report.” 15 Apr. 2024.
Reuters. “Record Galapagos debt-for-nature swap scrutinized over transparency irregularities claims.” 27 Sept. 2024.
Saiki, Arnie. Ecological Economic Accounts: Towards Intemerate Values. Pacific Conference of Churches, Pacific Theological College, University of South Pacific, 2020.
UN Trade and Development. “A World of Debt 2025.” UNCTAD, 2025.
United Nations. “United Nations Declaration on the Rights of Indigenous Peoples.” UN, 2007.
United Nations Statistics Division. “System of National Accounts 2025.” UNStats, 2025.
United Nations System of Environmental-Economic Accounting. “Ecosystem Accounting.” UN SEEA, 2021.
published on my substack: https://onibaba.substack.com/p/ecological-accountings-debt-climate









