A landmark collaboration between the International Finance Corporation (IFC) and the CARICOM Committee of Central Bank Governors aims to accelerate green investments across the English-speaking Caribbean, offering new hope for climate resilience, economic growth, and sustainable development in one of the world’s most vulnerable regions.
At the core of this agreement is the creation of a regional green finance taxonomy—a standardized framework that will define what qualifies as a “green” asset. This taxonomy is expected to unlock new streams of climate financing by guiding private sector investment into sustainable projects, such as renewable energy, climate-resilient infrastructure, and nature-based solutions. The initiative will help align the region’s financial systems with international green finance standards while being tailored to local realities.
View Investment Properties for Sale in Barbados
Why It Matters:
- Clear Path for Climate Finance:
The new taxonomy will offer banks and investors the clarity needed to assess and support green projects, ultimately enabling countries to meet their climate mitigation and adaptation targets. - A Step Toward Economic Resilience:
According to Dr. Kevin Greenidge, Governor of the Central Bank of Barbados and Chair of the CARICOM Committee of Central Bank Governors, “This partnership with IFC represents a pivotal moment for the Caribbean’s financial resilience and climate adaptation efforts… This taxonomy will help our financial institutions better assess and fund the green investments our economies desperately need.” - Tackling a $55 Billion Climate Finance Gap:
Ronke-Amoni Ogunsulire, IFC Regional Manager for the Caribbean, highlighted that Caribbean Small Island Developing States face a projected climate finance gap of nearly US$55 billion by 2030. This initiative is part of a broader effort to close that gap by unlocking more private capital.
View Investment Properties for Sale in Barbados
Project Framework:
- Led by IFC’s Financial Institutions Group for Latin America and the Caribbean, the project will involve wide stakeholder engagement—from regulators and financial institutions to supervisory bodies—to ensure the taxonomy reflects regional needs.
- It will be informed by global best practices and adapted to the region’s unique climate and economic vulnerabilities.
The Caribbean’s Climate Reality:
- The English-speaking Caribbean contributes less than 1% to global greenhouse gas emissions but faces disproportionate climate threats, such as hurricanes, sea-level rise, and droughts.
- The region’s debt-to-GDP ratio stood at 77% at the end of 2023, reflecting the cost of rebuilding after repeated natural disasters.
- Tourism, a major economic pillar, is highly sensitive to climate impacts and accounts for nearly 14% of the region’s GDP.
- On average, the region loses 3.6% of GDP annually due to climate-related hazards.
View Investment Properties for Sale in Barbados
In this context, the IFC–CARICOM partnership marks a critical step toward building a more sustainable, climate-resilient financial ecosystem—one that can support recovery, innovation, and inclusive growth for future generations.
View all of our Properties for Sale in Barbados
