World Bank approves $200 million loan for Barbados

The World Bank on Tuesday approved US$100 (BDS$200 million) in financing to support Barbados’ development of a low-carbon economy and its resilience to climate change.

The funds are being provided as a Barbados Green and Resilient Development Policy Loan.

“I cannot underscore enough the necessity of support such as this to middle-income small island developing states,” Prime Minister Mia Mottley said as she welcomed the assistance.

“This loan allows Barbados to advance its efforts to achieve climate resilience, including continuing our shift to clean energy. This ultimately allows us to better shield Barbadians from the worst excesses of the climate crisis while creating opportunities for green and blue jobs and investment as we adapt to our new reality.”

The Barbados Green and Resilient Recovery Development Policy Loan has two main pillars. The first focuses on green and blue resilient development, which includes a new law on water reuse, the adoption of a climate change and agriculture policy and the establishment of an Environmental Sustainability Fund, all of which are critical since Barbados is a water-stressed country. This pillar also supports the reduction of marine pollution, and the management of natural resources, in the context of climate vulnerability.

The second programme pillar facilitates Barbados’ low carbon and resilient infrastructure development through the implementation of new standards for agency-level disaster management plans, institutional reviews of national emergency management agencies, as well as increased renewable energy capacity and support for climate change adaptation and mitigation efforts.

The World Bank noted that Barbados’ heavy dependence on imported fossil fuels exposes the country to international price fluctuations, impacting the competitiveness of productive sectors as a result. Rising fuel prices also exacerbate the increasing vulnerability of Barbados’ economic recovery, adding to existing environmental vulnerabilities, it said.

“The realities of the Caribbean as one of the world’s most vulnerable regions demand that we take strong action,” said Lilia Burunciuc, World Bank’s Director for the Caribbean.

“The World Bank is pleased to support Barbados – and other Caribbean countries – as they strive for economic and environmental resilience, fully acknowledging that the two are inextricably linked.”

Last year, the World Bank Group provided over US$26 billion in climate investments to developing countries, including those in the Caribbean, and the Bank is on track to exceed that sum this fiscal year. Its Climate Action Plan commits 35 per cent of the Bank’s financing to climate action. (BT/PR)