TRANSFORMING FINANCE TO UNLOCK CLIMATE ACTION IN THE CARIBBEAN

The Caribbean Development Bank (CDB) is seeking Project Preparation Facility (PPF) funding to design a programme that blends GCF and CDB resources to provide concessional loans to Development Finance Institutions (DFIs) in Belize, Jamaica, and St. Lucia. These DFIs will then on-lend to micro, small, and medium enterprises (MSMEs) and homeowners for climate mitigation and adaptation projects. The programme aims to address financial barriers, such as high interest rates and perceived risks, while providing technical assistance to improve the capacity of both lenders and borrowers to implement bankable climate projects. Tentative targets include reducing at least 0.6 million tCO2eq and benefiting at least 375,000 people.

• The programme aims to unlock private sector investment in Caribbean productive sectors and energy systems by blending GCF and CDB resources to provide concessional lines of credit to Development Finance Institutions (DFIs), who will then on-lend to MSMEs and homeowners.
• The proposed financial structure involves a USD 35 million concessional line of credit from the GCF, blended with USD 25 million from CDB's Ordinary Capital Resources, totaling USD 60 million for Caribbean DFIs.
• The programme targets two primary areas of climate action: mitigation (approximately 50% of lending) focusing on renewable energy, energy efficiency, and low-emissions transport; and adaptation (approximately 50% of lending) focusing on resilient agriculture, fisheries, and infrastructure.
• Tentative impact estimates suggest the programme could reduce or avoid at least 0.6 million tCO2eq and provide direct benefits to at least 375,000 people.
• Significant financial barriers inhibit private investment, including the perception by local financial institutions that climate action investments are "high-risk propositions" and a lack of capacity among private sector actors to develop "bankable projects".
• The programme identifies Belize, Jamaica, and St. Lucia as partner countries, collaborating specifically with the Development Finance Corporation of Belize, the Development Bank of Jamaica, and the St. Lucia Development Bank.
• Technical assistance (Component 2) will be jointly executed by the CDB and the United Nations Development Programme (UNDP) to address capacity gaps in climate-informed lending and project design.
• Climate projections for the Caribbean indicate that even if the 2 degree Celsius goal is met, the region could see warming of 1.0-2.5 degrees Celsius, sea level rise of up to 1.5 meters, and a 15% to 20% decrease in average annual rainfall.

APA

Green Climate Fund (2020). TRANSFORMING FINANCE TO UNLOCK CLIMATE ACTION IN THE CARIBBEAN. https://www.greenclimate.fund/sites/default/files/document/ppf-cdb-belize-jamaica-saint-lucia.pdf

Chicago

Green Climate Fund. TRANSFORMING FINANCE TO UNLOCK CLIMATE ACTION IN THE CARIBBEAN. 2020. https://www.greenclimate.fund/sites/default/files/document/ppf-cdb-belize-jamaica-saint-lucia.pdf.

Wikipedia

{{cite report |author=Green Climate Fund |title=TRANSFORMING FINANCE TO UNLOCK CLIMATE ACTION IN THE CARIBBEAN |date=20 September 2020 |url=https://www.greenclimate.fund/sites/default/files/document/ppf-cdb-belize-jamaica-saint-lucia.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greenclimatefund2020transforming, author = {{Green Climate Fund}}, title = {{TRANSFORMING FINANCE TO UNLOCK CLIMATE ACTION IN THE CARIBBEAN}}, institution = {Green Climate Fund}, year = {2020}, month = sep, url = {https://www.greenclimate.fund/sites/default/files/document/ppf-cdb-belize-jamaica-saint-lucia.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }