IDB and EIB approve guarantees to support Barbados’ climate and fiscal resilience

The Inter-American Development Bank (IDB) and the European Investment Bank (EIB) approved guarantees totaling 300 million dollars in order to support Barbados to invest in critical climate adaptation projects. Each bank will contribute 150 million dollars, marking the first time that both institutions have provided joint guarantees for the same operation in the Caribbean.

The guarantees will be used in a debt-for-climate conversion plan, which creates the fiscal space that allows the government to make investments in resilience that would not otherwise be possible given current fiscal constraints. The guarantees will also help Barbados advance its resilience plans outlined in the country’s updated Nationally Determined Contribution (NDC) under the Paris Agreement, and in the “Roofs to Reefs” Programme, by increasing water availability and food security and enhancing the country’s resilience in a holistic manner. In addition, the guarantees support the implementation of the European Union’s “Global Gateway” investment strategy and enable Barbados to access crucial water and climate finance.