EIB and IDB partner on $300 million guarantee to advance Barbados’ climate resilience projects
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The Inter-American Development Bank (IDB) and the European Investment Bank (EIB) announced that they have approved guarantees amounting to $300 million to support an “innovative debt-for-climate operation” in Barbados.
The operation will aid Barbados in unlocking the required resources to endow funds into critical climate adaptation projects while also ensuring that other priorities, such as social spending on health and education, are not neglected.
The boards of the IDB and EIB have each approved a $150 million guarantee, marking their first joint guarantee for a single operation in the Caribbean.
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This collaborative approach to innovative climate financing and project preparation will significantly enhance the scale and impact of Barbados’ investment in climate-resilient infrastructure.
The guarantees will support a debt-for-climate conversion plan, creating fiscal space for resilience investments otherwise constrained by current financial limits.
The guarantees will also advance Barbados’ resilience goals outlined in its Updated Nationally Determined Contribution (NDC) and Roofs to Reefs Programme, improving water availability, food security, and overall resilience.
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EIB President Nadia Calviño said, “The EIB has consolidated its role as the Climate Bank, supporting investments that reinforce the resilience of most affected countries.”
She added, “I am really proud that the EIB Group participates in the first-ever debt-for-climate conversion and, through our partnership with the European Commission, the IDB and the government of Barbados, set an important milestone in innovative financing for climate action.”
Through the guaranteed programme, Barbados will implement policies to enhance climate investment readiness, safeguard groundwater, and increase agricultural output.
The government will also improve tax and debt management and develop strategies to bolster financial resilience against natural disasters. Additional investments will focus on reducing water losses and creating a comprehensive water security plan.
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