The World Bank has approved US$100 million in financing to support Barbados’ low carbon economic development and resilience to climate change.
“I cannot underscore enough the necessity of support, such as this, to middle income small island developing states,” Prime Minister Mia Mottley said.
“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,” she added.
The Washington-based financial institution said the Barbados Green and Resilient 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 on an Environment Sustainability Fund, all of which are critical since Barbados is a water-scarce country.
“This pillar also supports the reduction of marine pollution, and management of natural resources, in the context of climate vulnerability,” the World Bank said, adding that the second program 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 bank said Barbados’ heavy dependence on imported fossil fuels exposes the country to international price fluctuations, thereby impacting the competitiveness of productive sectors. Rising fuel prices also exacerbate the increasing vulnerability of Barbados’ economic recovery, adding to existing environmental vulnerabilities.
“The realities of the Caribbean as one of the world’s most vulnerable regions demands 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”, she added.
Last year, the World Bank Group provided over US$26 billion in climate investments to developing countries – including those in the Caribbean – and is on track to exceed that sum during this fiscal year.
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