CDB reports doubling of Climate Finance investments in 2025

The Caribbean Development Bank (CDB) achieved a historic milestone in 2025 by approving a total of USD226.7 million for climate-related projects, representing its most significant annual investment in environmental initiatives to date.

CDB stated that this figure accounted for roughly half of all project approvals that year and more than doubled the USD101.5 million allocated in 2024, highlighting an unprecedented surge in climate finance.

A press release issued by the Bank said that the remarkable increase was primarily driven by a USD125 million environmental Policy-Based Loan (PBL) disbursed to Guyana. Additionally, similar financing packages of USD30 million each were allocated to Dominica and Saint Vincent and the Grenadines.

These PBLs are designed to support vital reforms in areas such as biodiversity preservation, climate resilience, and water resource management. The funds will also bolster the technical expertise and financial capacity of member countries to better withstand and recover from climate-related shocks.

Valerie Isaac, Chief of the Environmental Sustainability Division at CDB, emphasized the critical importance of climate action.

“The climate crisis is not simply a challenge. It is an existential threat to our development and wellbeing, particularly the most vulnerable people,” she stated.

During the Bank’s recent Annual News Conference held in Bridgetown, Barbados, Ms. Isaac underscored that “Resilience is neither an option nor a luxury. It is a fundamental requirement for regional growth and stability.”

In addition to its direct project approvals, in 2025, CDB said it secured USD27 million in grants and loans from the Green Climate Fund (GCF). These funds aim to support the Integrated Utility Services Programme, which boasts a total investment volume exceeding USD68 million and focuses on expanding energy efficiency measures and renewable energy sources, including rooftop solar systems, across Barbados, Belize, and Jamaica.

Another USD27 million in GCF grants will fund the Caribbean Hydrometeorological and Multi-Hazard Early Warning Services Project, which will upgrade forecasting systems in Belize and Trinidad and Tobago to better protect the lives and livelihoods of 1.8 million residents.

A significant development in the Bank’s climate strategy was the operationalization of the Climate Change Project Preparation Fund. This initiative is designed to streamline project pipelines by removing barriers that delay climate finance deployment, thereby increasing funding availability for climate action in CDB’s borrowing member countries.

According to the release, looking ahead to 2026, Ms. Isaac indicated that CDB intends to accelerate its climate efforts. Key priorities include finalizing a USD200 million regional blue economy initiative focused on safeguarding ocean resources while creating new employment opportunities in marine sectors.

The Bank also plans to launch a regional platform to develop actionable investment portfolios aligned with national energy and transportation priorities. Additional efforts will focus on enhancing water sector resilience and promoting locally-led climate adaptation strategies.

“The decisions and actions we take today will dictate the Caribbean’s development trajectory for the next half-century,” Ms. Isaac remarked. “We will continue to innovate and transform, strengthen our own capacity and that of our borrowing member countries, accelerate the development of investment-ready pipelines, mobilise climate and disaster finance at scale, deepen strategic partnerships, and advance coordinated regional climate action.”

The Bank’s Annual News Conference took place on March 3, 2026, at the Frank Collymore Hall in Bridgetown, Barbados. The event featured presentations from top officials, including President Mr. Daniel M. Best, Projects Director Mr. O’Reilly Lewis, and Acting Deputy Director of Economics Mr. Jason Cotton.