Senator calls for an account of $1.3 billion climate resilience funding

An opposition senator has expressed concern about the government’s handling of the $1.3 billion climate resilience funding and what he calls a lack of transparency surrounding the utilisation of substantial financial resources acquired to combat climate change.

Senator  Walters believes greater accountability and detailed reporting are needed on how these funds are being used to build resilience in Barbados.

“We have had a lot of discussion in Barbados surrounding what we refer to as building resilience against climate change,” Walters stated recently during a media conference at the Offices of the Opposition Leader.

“I know a lot of Barbadians are getting weary of the terms resilience and climate change, and everything is kind of angled back and directed back to this whole phenomenon of climate change. I don’t agree that we’re thinking Barbadians, the Democratic Labour Party, definitely does understand the importance of climate change and the impact that climate change will have.”

He acknowledged the awareness and understanding among Barbadians regarding the effects of climate change, such as sea erosion, renewable energy, and increasing temperatures. “We hear about the erosion of the seas and the sands. We hear about renewable energy. We hear about how hot the days are. We know, we understand, and we appreciate that there has to be a response from the government.”

However, the senator pointed out a significant gap in communication from the government about their specific actions and responses to these challenges.

“But missing from this conversation, we have not really understood or have not really gotten from the government what their response has been. They talk a lot about resilience, and they talk a lot on the national front. They talk a lot on the international stage. But they’ve been doing some things behind the scenes, and I know Barbadians have not really gotten the full sense of what this government has done from the perspective of financing sustainability as it relates to building resilience against climate change.”

Senator Walters provided a detailed overview of the financial resources that Barbados has accessed since January 2023 to bolster climate resilience. In September 2022, the International Monetary Fund (IMF) stated in a press release that Barbados was the first country to reach a staff-level agreement to access its Resilience and Sustainability Trust (RST), which helps low-income and vulnerable middle-income countries build resilience to external shocks and ensure sustainable growth, contributing to their long-term balance of payment stability.

Barbados secured $366 million under the RST and another $220 million under an extended fund facility. Walters detailed the disbursement of these funds, citing official reports.

“So I turn now to the Section 9 report of 2023, just to see if we draw down on this money [and] Barbados, based on this report, has received BBD $151 million from the Resilience and Sustainability Trust in 2023, Barbadian dollars.”

Quoting from the Section 9 report, he said, “Multilateral institutions were the main sources of foreign financing for the government. During the first nine months of 2023–2024, policy-related loans amounted to $427.6 million. The IMF extended fund facility and the Resilience and Sustainability Facility contributed $227.6 million, with $151.7 million earmarked for climate resilience.”

He further highlighted additional funds accessed, including $74 million from the IMF in June 2024, $200 million from the World Bank, and $100 million from the Inter-American Development Bank (IDB).

“On June 28th, 2024, the IMF issued another release for a review of the financial performance of the economy. And in that release, we have access—an immediate access note—from the government of Barbados to an additional $74 million from the RST. So we have $151.7 million in 2023. Year-to-date, $74 million, or $225.7 million in total, came from the IMF’s RST, the Resilience and Sustainability Facility, obtained to fight against climate change.”

Walters emphasized the necessity for transparency and accountability in how these funds are used. “I reiterate that we understand the importance of building resilience, but we need to have an account for the money because we need to see the buildup of resilience. Where is it going? How much is being spent on consulting fees for actual infrastructure?

“We’re not being facetious here, because if projects have not started, identify those projects. Identify the cost of those projects. Identify the timelines of those projects, the duration of those projects, and what is being allocated to those projects. We need transparency because there’s still a balance in the IMF to come. And I’m sure that there will be more deals to be brokered as we campaign internationally about climate resilience.”

He also mentioned additional funding sources and commitments, such as the $773 million loan from the United Kingdom Export Finance Agency and projects funded by the Green Climate Fund. Walters expressed his support for these initiatives but stressed the importance of clear, accountable governance.

“So I know this is an Olympic year, but Barbados has to have a record in the amount of money they could borrow in 18 months as a small island developing state to build resilience. $1.3 billion, and what do we have to show for it? We can support it as a party. I am sure the public will support it, but we have to see what we are supporting. We have to give an account for this financing that we have obtained.”

Walters contrasted the significant funds raised with the limited support offered to sectors affected by natural disasters. “After having this information before me, before us here today, that you would offer an industry that has been devastated by a natural disaster, $500,000. That has not been invested by the government but has been donated by another bank.” (RG)