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From Risk to Return: How DFC Powers U.S. Prosperity and Security

Policy Brief

Global

Publication date: August 20, 2025

File format: PDF

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This policy brief outlines how the U.S. Development Finance Corporation (DFC) can advance U.S. interests through nature-positive finance.

Subject Tags

  • Policy
  • Policy, Finance, and Markets
Cover image for From Risk to Return policy brief.
From Risk to Return The U.S. Development Finance Corporation (DFC) can advance U.S. interests through nature-positive finance. © The Nature Conservancy

Abstract

The U.S. Development Finance Corporation (DFC) offers a flexible and innovative way for the United States to support private sector development in strategic areas of the world, while mobilizing U.S. private capital. It offers a tangible alternative to funding from other nations, such as geopolitical rivals like China.

Key Messages:

  • The political risk insurance (PRI) product offered by DFC generates a disproportionate amount of revenue for U.S. taxpayers compared to other products.
  • Debt conversions are an innovative PRI-based product line—pioneered by DFC during the first Trump administration—that effectively mobilizes private U.S. capital with strategic conservation and nature-positive outcomes, while generating direct returns for U.S. taxpayers.
  • For example, Belize’s debt conversion promotes marine conservation, economic stability, and strategic benefits for both Belize and the United States. Additionally, Ecuador’s terrestrial-freshwater debt conversion for nature is a landmark deal that advances conservation, supports local livelihoods, and strengthens economic resilience.
  • Looking forward, The Nature Conservancy and partner organizations have developed a globally strategic pipeline of debt conversions for nature that have the potential to serve as a powerful tool to advance U.S. prosperity and security.

Suggested Citation

The Nature Conservancy. From Risk to Return: How DFC Powers U.S. Prosperity and Security. Policy Brief no. 1. The Nature Conservancy, August 2025.