China Development Bank and French Development Agency jointly invest US$50 million to help build a green Caribbean

The Caribbean Development Bank (CDB) has secured an additional $50 million in financing through a groundbreaking credit facility with the French Development Agency (AFD). Established in 2016, the credit line has been replenished to help eligible governments implement climate adaptation and gender-responsive initiatives. With $33 million previously committed, the new credit line has so far provided more than $8 million for projects in St. Vincent and the Grenadines and Grenada.

Therese Turner Jones, Acting Vice President for Operations at the CDB, stressed the importance of continued collaboration with the French Development Agency in addressing climate-related challenges in the region.

“All of our client countries are extremely vulnerable and are experiencing the impacts of climate change. This alliance with the French government through the BFD further diversifies the Bank’s funding resources and provides much-needed support for critical infrastructure projects that have environmental, climate change mitigation, adaptation and gender mainstreaming benefits,” she noted.

The French Development Agency’s funding aims to remove the financial and technical barriers faced by countries, and help governments invest in adaptation and mitigation measures through technical assistance, loans and grants. Focus areas include renewable energy, water and wastewater management, agriculture, forestry, land use, infrastructure and transportation, with an emphasis on reducing greenhouse gas emissions, improving climate resilience and reducing social vulnerability.

Onika Miller, Chief Strategy and Accountability Officer at the Caribbean Development Bank, stressed the importance of this intervention: “There is an urgent need to strengthen the region’s ability to respond to climate change and increase the resilience of the Caribbean. These partnerships are a cornerstone in our efforts to strengthen and expand our capacity to assist governments in transforming their economies by improving access to adequate and affordable finance.”

Since its inception, the AFD credit line has brought significant benefits to the region. L. O’Reilly Lewis, Acting Director of the Project Department, highlighted the positive impact on education of the AFD-funded Grenada Education Promotion Project. The project, currently in its second phase, focuses on rebuilding and strengthening educational infrastructure in the face of increasingly frequent natural disasters, such as the recent Category 4 Hurricane Beryl.

Caribbean countries face a wide range of natural disasters, from hurricanes to floods, with significant economic and social impacts. These challenges are expected to grow more severe as climate disasters become more frequent. The Caribbean Development Bank continues to explore opportunities to help Caribbean countries address fragile economic conditions, high public debt, and urgent climate adaptation needs. The partnership between the Caribbean Development Bank and the French Development Bank is an important resource for sustainable development in the region, providing the necessary financial and technical support to strengthen economies, protect infrastructure, and improve climate resilience.