This report summarises the major lessons learnt from the experience with debt-for-environment swaps (DFES) in selected transition economies of Central and Eastern Europe, Caucasus and Central Asia. It presents the key steps in designing, negotiating and implementing DFES in low-income countries that have accumulated significant external debt and face challenges with servicing this debt. The report draws primarily on the experience of Poland, Bulgaria, Georgia and the Kyrgyz Republic but relevant cases and lessons from other countries in the world are included, as appropriate.