# Debt-for-Carbon (D4C) Swaps: Key Design Considerations

Published by Perspectives Climate Group. Canonical page: https://perspectives.cc/work/publications/debt-for-carbon-d4c-swaps-key-design-considerations/

This report examines how Debt-for-Carbon (D4C) swaps can combine sovereign debt treatment with carbon market transactions. It develops two design options: using carbon credits to settle debt obligations, and using debt relief to finance mitigation programmes that generate carbon credits. The authors explain the implications for governance, risk allocation, credit transfers and accounting, with illustrative examples and indicative contractual provisions.

## Details

- Authors: Igor Shishlov, Luisa Weber, Axel Michaelowa
- Year: 2026
- Type: Report
- Published by: Perspectives Climate Research
- Topics: Climate Finance, Carbon Markets
- PDF: https://perspectives.cc/cms-media/a1fcfdf7c7b01ce96a3a5a7dbab28c61cb42b0d519739958beeae1914c703436.pdf

Cite this page as: Igor Shishlov, Luisa Weber, Axel Michaelowa (2026). Debt-for-Carbon (D4C) Swaps: Key Design Considerations. Perspectives Climate Research. Available at: https://perspectives.cc/work/publications/debt-for-carbon-d4c-swaps-key-design-considerations/