Zambia has received a "debt-for-nature swap" proposal from the World Wildlife Fund (WWF) within its $13 billion debt restructuring talks.

The country has become a test case for the G-20 Common Framework restructuring program introduced during the pandemic. However, differences with some of Zambia's creditors in relation to the required debt relief have led to sluggish progress.

However, the government announced on Wednesday that the WWF had provided a blueprint in 2022 on ways in which conservation pledges could be included in the deal, Reuters reports.

Debt-for-nature swaps substitute costly bonds or loans with less expensive financing, typically with a credit guarantee from a multilateral development bank in exchange for ecosystem protection.

Conservationists consider Zambia a clear candidate for WWF funding, with climate change and deforestation threatening the natural habitats of wildlife.

"The Ministry of Finance and National Planning has received a proposal from the World Wildlife Fund regarding the consideration of debt-for-nature swaps," said the ministry.

However, the proposal has not as yet been included in the International Monetary Fund's current debt sustainability review.

"We will be considering all debt restructuring options that are in the framework (G20 Common Framework) which falls within the DSA (debt sustainability analysis) parameters... and that are acceptable to all parties," the ministry added.

Nachilala Nkombo, head of the WWF in Zambia said the proposal could make available between $750 million - $1 billion for green projects.

Although a number of the country's private sector bondholders are forecast to be in favour of the proposal, it's not known where China and France stand, along with other "official sector" creditors. Discussions have already been ongoing for two years.

Head of the International Monetary Fund, Kristalina Georgieva, is set to travel to Zambia in two weeks.