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The document examines the potential for "debt-for-climate" swaps as a mechanism to provide budgetary relief to developing countries while funding climate mitigation and adaptation. It argues that while these swaps are not a universal solution and must supplement general macroeconomic stabilisation, they offer mutual benefits for debtors and creditors. The authors propose a selection framework based on economic need, emissions potential, climate ambition, and governance capacity. Applying these criteria, the paper identifies several Small Island Developing States (SIDS)—including Dominica, Granada, Samoa, St. Vincent and the Grenadines, and Tonga—as well as Bhutan and Rwanda, as promising candidates for such initiatives. However, the authors note a trade-off: while these countries are highly suitable, their low emissions mean the global impact on emissions would be smaller compared to including larger emerging economies.