How a Significant Debt-for-Nature Agreement Will Aid in the Conservation of the Galápagos

One July evening in Ecuador’s Galápagos Islands, I find myself wading through the waves alongside a pink flamingo, eagerly watching for baby sea turtles hatching from their nests on the shore. The national park, which covers 97 percent of this isolated Pacific archipelago, closes to human activity at 6 p.m. My guide, Jhosellyn Aguas, a local and park ranger, ensures we leave just in time.

I rush back to my Hurtigruten expedition vessel, narrowly sidestepping a lethargic marine iguana on my path. Lizards abound in this region, except for the critically endangered pink land iguana, whose hatchlings and juveniles were spotted for the first time in December 2022, right at the equator on the peak of Wolf Volcano on Isabela Island. This discovery has been hailed as one of the most significant biological finds of this century, prompting scientists to plan expeditions to study them on the volcano’s slopes, which last erupted just last year.

From kelp and coral reefs to geckos and giant tortoises, countless species continue to be discovered, cohabiting and adapting to one another here, 600 miles off the Ecuadorian coast, within one of the world’s largest and most protected ecosystems. In 2020 alone, 30 new animal species were identified—"and likely more would have been found if funding hadn’t run out," explains my Hurtigruten expedition leader Ramiro Tomala, highlighting the historical challenges of enforcing park regulations, which often leave little room for additional research.

Despite a 1998 law aimed at curbing fishing and over-exploitation, visitor numbers to the original UNESCO World Heritage site have surged nearly 60 percent since 2010, reaching 268,000. With new flights being introduced, the International Galápagos Tour Operators Association now forecasts 1 million visitors annually by 2041. This projected growth is termed "unsustainable" in a 2023 UNESCO report, warning of increased pollution and invasive species. In response, the International Galápagos Tour Operators Association proposed in August that Ecuador should limit land-based visitors to preserve the remaining unique species of the Galápagos.

This is because while Hurtigruten’sSanta Cruz II, like all expedition ships in the Galápagos, is mandated by the national park to keep passenger numbers below 100, there are significantly fewer restrictions on the 3 percent of habitable land in the Galápagos. This area boasts 310 registered accommodations, with more luxury hotels planned—including one near an iguana nesting site. Meanwhile, Galápagos National Park authorities have intensified biosecurity protocols to guard against the deadly H5N1 strain of avian flu, following the deaths of a red-footed booby and two endemic magnificent frigate birds from the virus in September, which were made more vulnerable by this year’s El Niño and rising sea temperatures due to the weakening of the Humboldt current.

Ecuador is addressing a significant debt through conservation initiatives

The positive aspect is that as one of the most biodiverse nations globally, Ecuador is discovering creative solutions to safeguard its national park while recognizing the necessity for economic progress. A pivotal example occurred this past May when the country exchanged its substantial debt for an 18.5-year pledge to repay it through ongoing conservation efforts in the largest debt-for-nature transaction in history.

How it works: With assistance from Credit Suisse, Ecuador successfully repurchased $1.6 billion of its accumulated debt at just 40 cents on the dollar (a 60 percent discount), committing to allocate $12 million annually for Galápagos conservation over the next 18.5 years.

As the largest debt-for-nature agreement since the first one was established in Bolivia in 1987 (double the size of Belize’s in 2021), Ecuador has pledged to enhance wildlife protection, bolster climate resilience, and intensify patrolling to safeguard critical ecosystems essential for critically endangered migratory species. This commitment applies to both the Galápagos National Park and an additional 23,000 square miles of ocean corridor through Colombia and Panama to Costa Rican protected areas, recently designated as the Hermandad Marine Reserve.

The new initiatives, which also allocate resources for scientific research, environmental education, sustainable tourism, and community development, were implemented following Ecuador’s intensified crackdown on illegal fishing, prompted by criticism from the European Union regarding its enforcement shortcomings.

Now, with increased funding for wildlife conservation and sustainable tourism initiatives, alongside the recent local and international movement to limit land-based visitation, this deal places pressure on local authorities to further restrict visitor numbers in the Galápagos.

"Through the debt-for-nature initiative, not only did Ecuador save $1.1 billion in debt, but we also secured $450 million for the conservation of the Galápagos Islands, enabling us to develop a blue economy, enhance climate resilience, and promote sustainable fishing," states Gustavo Manrique Miranda, Ecuador’s minister of foreign affairs and human mobility.

Worldwide, debt-for-nature agreements are increasingly seen as an appealing solution for the majority of developing nations at risk of defaulting on their debts. The Galápagos National Park will retain its authority over conservation and tourism decisions, while the Ecuadorian Navy will oversee the new marine reserve.

“Scientists come and go, and we have the permanent Charles Darwin Research Station dedicated to the Galápagos, but our priority is to ensure that no new issues arise, leaving little time for exploration,” Tomala remarks regarding the difficulties of managing an influx of land-based tourists post-COVID. Despite ongoing overcrowding and past overfishing challenges, the innovative debt swap enhances protections to maintain the archipelago that inspired Darwin’s theory of evolution as one of the world’s most unspoiled environments—allowing scientists to continue making important discoveries, including the last 211 pink land iguanas on Earth, now found on the slopes of Wolf Volcano.

How to visit: Hurtigruten Expeditions, one of the world’s most sustainably operated cruise lines, is now offering a new combined Western Loop and Northern Loop expedition. To experience everything, book the complete 11-day itinerary on the carbon-neutral, newly renovated MS Santa Cruz II. Hurtigruten partners with Metropolitan Touring, which has been a pioneer in Galápagos expedition cruises for 70 years, leveraging their local expertise.

Continue your adventure to another biodiversity hotspot at Mashpi Lodge: Where the rainforest merges with the cloud forest, Ecuador’s Chocó region, one of the planet’s most threatened tropical ecosystems, is now protected from mining due to an August referendum. Luxurious and verdant, Mashpi Lodge is a 2,500-acre private reserve located 3,117 feet above sea level. (To reach this remote area in the northwest corner of Quito’s Metropolitan District, arrange transportation from the Galápagos with Hurtigruten.)

The other half of Mashpi is still owned by former Quito mayor Roque Sevilla, who acquired the initial plot in 2001 to preserve the land after years of deforestation and gold mining exploitation, bringing things full circle. Visitors can enjoy guided walks through breathtaking waterfalls to spot the endemic Mashpi frog and magnolia trees, while observing some of the 400 bird species, many discovered by on-site biologists. For stunning views, take a ride on the sky bike along a cable that spans the resort’s canopy, overlooking what is now among the last 2 percent of the original Chocó-Andean forest that remains intact.