Rep. Jose de Venecia Jr. (Pangasinan) has sought the support of Prime Minister Gordon Brown of the United Kingdom in pushing his enlarged debt-swap, debt for environment formula to help the 100 highly-indebted middle income countries overcome debt service woes, and achieve Millennium Development Goals, particularly the global thrust against climate change.

In his letter to the prime minister, De Venecia, former House Speaker, said that the recent global economic downturn has affected many nations in the world, and most especially those who belong to the 100 highly indebted middle income countries who are experiencing an even more difficult time in servicing their debt.

“The danger is real that the debt service will crowd out our social expenditures, which are already squeezed dry. More than eight percent of our GDP now goes to yearly debt payments. For the Philippines’ foreign debt of some US$56 million, we must set aside close to $5 billion in principal and interest payments yearly,” he said.

“In my view, Mr. Prime Minister, the most difficult aspect of the coming Copenhagen negotiations is that the newly industrializing countries (NICs) are unwilling to accept internationally binding emission reduction targets without financial or technical compensation to cover the economic costs of these targets,” he said.

But De Venecia said that under his proposal, NICs and international creditors will not be asked to suspend or forgive a single dollar of debt nor require them to dole out new money to support the anti-climate change ideals of the indebted countries. Instead, creditor states and lending institutions are given the option to convert as much as 50 percent of the yearly debt service payments that they receive into investor equity in anti-climate change programs such as massive reforestation, water conservation, alternative energy, mass housing, education, health and social infrastructure.

In his discussion, he said that debt swap for massive reforestation is a win-win solution for both the lending country and its debtor since the measure will serve boost the nation’s economy through more employment opportunities in growing trees and harvesting timber. Investor countries on the other hand, can profit from commercial farming in the Philippines since the climate is highly conducive to the maturity of trees, compared to longer period in other temperate zones.

“As is well known, trees absorb the runoff from the monsoon rains and prevent the erosion that swells rivers — whose flooding destroys low lying communities and houses, farms, aqua-culture, etc…. Trees also absorb the carbon dioxide emissions that create global warming and set off storms, droughts, rains and floods,” he said.

De Venecia further said that other social projects are also profitable as the generate tolls, rentals and sales income. Reforestation, in particular, earns carbon credits under the Kyoto Protocol while equity holders in mass housing projects for the relocation of squatters families living along water courses and high risk areas will have oversight powers over the projects the handle.

“We look to you for leadership, Mr. Prime Minister, that in your person — and in your Government — the 100 most heavily indebted middle income countries will find a champion; and that together we will achieve a breakthrough in our common struggle against climate change — while also generating a major stimulus for our stagnant economies,” he said.