Caribbean Development Bank Advances Climate Change Project Fund

The Caribbean Development Bank (CDB) is advancing its efforts to create a Climate Change Project Preparation Fund designed to support its Borrowing Member Countries (BMCs) in crafting effective proposals for securing climate finance. This fund is anticipated to bolster the region’s ability to draw in more significant climate funding and enhance the quality of climate-related proposals, as highlighted by CDB’s Division Chief of Environmental Sustainability, Ms. Valerie Isaac.

This fund will play a critical role in CDB’s approach to increasing climate finance in the region by tackling the implementation challenges faced by BMCs. Its goal is to ensure readiness for implementation of proposals and to strengthen the regional pipeline of projects that can attract impactful climate investments.

Despite being highly vulnerable and having considerable needs, Caribbean nations have faced obstacles in accessing funding for climate initiatives, primarily due to stringent requirements and the complex project preparation processes necessary for concessional financing from development partners and multilateral climate funds.

CDB is currently funding preliminary work to establish the Fund, which includes examining similar mechanisms overseen by global institutions like the Green Climate Fund and the Adaptation Fund. The bank aims to have a comprehensive operational framework for the fund in place by the end of 2024.

Valerie Isaac emphasized that the fund will help alleviate these challenges, enabling the region to mobilize greater climate financing and achieve their climate adaptation and mitigation objectives. The fund will prioritize making initiatives ‘implementation-ready’, encourage high-impact investments, and fortify the regional project pipeline.