The European Investment Bank has partnered with the Caribbean Development Bank to sign a financing agreement for $110 million that will support climate change mitigation, adaptation, and resilience projects across the Caribbean.
Announced this week, the European Investment Bank (EIB) has signed a financing agreement worth $110 million with the Caribbean Development Bank (CDB) to finance investment projects in the Caribbean under the CDB’s climate action policy that will be designed to support climate mitigation, adaptation, and resilience projects. The financing, called the Climate Action Framework Loan II, builds on the existing $65 million Climate Action Line of Credit signed between the two organizations back in 2011, which itself supports nine projects across seven Caribbean countries.
The new financing agreement will be eligible for projects including climate change mitigation, adaptation and resilience projects in renewable energy, energy efficiency, road transport, water infrastructure, and community-level physical and social infrastructure projects that reduce greenhouse gas emissions and also serve to improve the resilience to the impacts of climate change. Already a $300 million pipeline of projects has been developed with support from an EIB-funded technical assistance program.
“We are delighted to be signing this new climate action loan with CDB, which is the result of a fruitful partnership that lasts for almost four decades, to support new projects in the Caribbean,” said Pim Van Ballekom, EIB Vice President. “This partnership is currently supporting CDB’s efforts to mainstream climate action to help its borrowing member countries (BMCs), which are all considered Small Island Developing States, to adequately tackle risks related to climate change. Caribbean countries face economic and social challenges which must be addressed whilst ensuring resilience to climate change. ”
“Through this new Line of Credit, CDB will be able to provide to its BMCs much needed low-cost financing to address the climate impacts already affecting these countries,” added CDB President Dr. Wm. Warren Smith. “The line supports our ongoing work to build climate resilience and the adaptive capacities of BMCs, as they work towards their goal of achieving sustainable development. The signing of this agreement reinforces the longstanding partnership between EIB and CDB, and signals strengthened cooperation between our two institutions.”