“We believe there is a possibility that there is a debt for climate trade where savings are made in debt repayment,” said Mr. Majkut. “But they must be used for clean energy investments that help reduce [emissions] activity.

“I don’t know yet if this could work on a large scale, but there are conversations about it.”

Australian Prime Minister Scott Morrison last month discussed with the World Bank and leaders of the four nations the debt levels of developing countries and hinted at investments in clean energy.

“There are a lot of countries that are indebted to other countries, which causes a lot of stress and tension and it is important that the countries do not embark on projects which do not really add value”, Mr Morrison said.

“What will bring added value are projects that strengthen the energy capacity and energy transition of these economies. “

He said he spoke to World Bank President David Malpass about the role the World Bank could play in funding clean energy projects.

Climate Policy Initiative directors Divjot Singh and Vikram Widge said debt swaps helped countries make better investments.

“DFC swaps can reduce leverage and free up tax resources to spend on green investments. “

“New debt can be issued by a debtor country to replace existing debt with a commitment to use the proceeds to tackle climate change through mutually agreed performance-related incentives such as lower interest rates, subsidies, carbon offsets to serve interest. “