Mobilizing International Climate Finance and Private Investments for Low-Carbon Development in the Dominican Republic

The proposal seeks USD 2,545,711 over 36 months to address fiscal vulnerabilities and institutional gaps in the Dominican Republic. Key initiatives include developing a National Climate Finance Strategy, preparing for sovereign green bond issuance, implementing debt-for-climate swaps, and establishing a National Financing Vehicle. The program also aims to green the banking sector, integrate climate criteria into public-private partnerships (PPPs), develop a National Ecotourism Strategy, and create 436,065 green jobs through vocational training. Additionally, it provides technical support to accredit two national entities as GCF Direct Access Entities.

• The Dominican Republic's updated Nationally Determined Contribution (NDC) targets a 27% reduction in emissions by 2030 compared to a business-as-usual scenario, but 20% of this reduction is conditional on external financing.
• The government estimates that achieving its NDC mitigation and adaptation targets will require investments of approximately US$ 8.92 billion and US$ 8.72 billion, respectively.
• The country faces significant fiscal constraints, with public debt rising to 68% of GDP following the COVID-19 pandemic, and a sharp decline in net Official Development Assistance (ODA) of 68% between 2015 and 2018.
• Domestic financial institutions lack the capacity to assess the bankability of low-carbon projects, with a 2020 survey indicating that no bank in the Dominican Republic screens transactions for environmental and social risks and climate impacts.
• The Dominican Republic has a history of public-private partnerships (PPPs), with 36 implemented since 1990 totaling US$ 5.83 billion, but these have largely ignored sustainability criteria and focused on traditional sectors like roads and ports.
• The tourism sector, which accounts for roughly 17% of GDP, suffered losses between 3.8% and 6.1% of GDP due to the pandemic, highlighting the need for a National Ecotourism Strategy to increase resilience.
• There is a significant mismatch between the education system and the green job market; the country has the potential to create 436,065 new green jobs over five years in energy, transport, construction, and agriculture.
• The proposal includes the establishment of a National Financing Vehicle (NFV) to centralize the capacity to design and fund high-quality mitigation and adaptation projects.
• The government intends to utilize innovative finance mechanisms, including a sovereign green bond framework aligned with ICMA's Green Bond Principles and a debt-for-climate swap strategy.

APA

Green Climate Fund (2022). Mobilizing International Climate Finance and Private Investments for Low-Carbon Development in the Dominican Republic. https://www.greenclimate.fund/sites/default/files/document/readiness-dominican-republic-gggi-multi-year.pdf

Chicago

Green Climate Fund. Mobilizing International Climate Finance and Private Investments for Low-Carbon Development in the Dominican Republic. 2022. https://www.greenclimate.fund/sites/default/files/document/readiness-dominican-republic-gggi-multi-year.pdf.

Wikipedia

{{cite report |author=Green Climate Fund |title=Mobilizing International Climate Finance and Private Investments for Low-Carbon Development in the Dominican Republic |date=6 July 2022 |url=https://www.greenclimate.fund/sites/default/files/document/readiness-dominican-republic-gggi-multi-year.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greenclimatefund2022mobilizing, author = {{Green Climate Fund}}, title = {{Mobilizing International Climate Finance and Private Investments for Low-Carbon Development in the Dominican Republic}}, institution = {Green Climate Fund}, year = {2022}, month = jul, url = {https://www.greenclimate.fund/sites/default/files/document/readiness-dominican-republic-gggi-multi-year.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }