Caribbean Development Bank granted €50 million for climate change projects

Member countries of the Caribbean Development Bank (CDB) will soon be able to climate change adaptation funding through a new line of credit provided by the European Investment Bank:

The Caribbean Development Bank (CDB) is to receive a Climate Action Line of Credit equivalent to EUR50 million, or approximately USD 65.3 million, from the European Investment Bank (EIB).

This line of credit is intended to address the severe vulnerability of CDB’s borrowing member countries to the effects of climate change, and the need for concessionary resources to promote climate change interventions in the current regional economic environment.

Proceeds of the credit may be used to finance up to 50% of the aggregate total costs of all eligible climate action projects, dealing with such areas as energy efficiency, renewable energy, forestry and land use, low carbon technologies research, development and innovation, adaptation, and transport projects that contribute to reducing road and air traffic emissions.

Access to these resources is derived mainly from the Cotonou Agreement signed between the African, Caribbean and Pacific (ACP) states and the European Union (EU), and the decision of the Council of the EU on the association of the Overseas Countries and Territories with the EU.