Recognising its vital role in protecting the Caribbean from the intensifying threats of climate change and disasters from natural hazards, the Caribbean Development Bank (CDB) is significantly amplifying its climate finance initiatives in 2025, building on its USD 101.5 million commitment in 2024 to support the region’s long-term sustainability.

Speaking at the Bank’s Annual News Conference in Barbados on Wednesday, March 19, CDB’s Division Chief for Environmental Sustainability, Ms. Valerie Isaac, outlined the Bank’s enhanced strategy for regional resilience, which prioritises strategic partnerships, increased climate finance, strengthening the region’s capacity to adapt to climate risks, and bridging the climate finance gap.

With more than USD 70 million already approved for 2025, CDB is advancing several other initiatives that would scale-up investments in climate action. The Bank is developing a USD 750 million pipeline for the Green Climate Fund (GCF) for resilient infrastructure while also securing an Adaptation Fund grant to strengthen agricultural resilience. 

The Bank’s achievements in 2024 laid a strong foundation for even greater success in 2025. Notably, CDB secured GCF approval to expand its project development capacity to USD 250 million per programme, five times its previous limit, allowing for larger-scale climate-resilient initiatives. The Bank is also preparing its first full GCF proposals for approval in 2025 and developing a Global Locally Led project to support grassroots adaptation efforts.

“This strategy also encompasses accessing concessional climate financing, supporting sound macroeconomic policies, climate-proofing infrastructure, and developing sustainable energy solutions, all aimed at bolstering the Caribbean’s ability to withstand and adapt to an increasingly uncertain future,” Ms. Isaac said.

In 2024, CDB provided USD 15 million in grants for disaster risk reduction and helped seven countries cover their CCRIF Risk Premium payments. CCRIF disbursed approximately USD 72 million to Grenada, Jamaica, and Saint Vincent and the Grenadines for post-Hurricane Beryl relief, of which USD 5.6 million was allocated to social protection systems. The Bank also contributed USD 10 million for Immediate Response Loans and USD 600,000 in grants to Grenada and Saint Vincent and the Grenadines.

A key milestone in December 2024 was the introduction of the Climate Change Project Preparation Fund, designed to bridge the climate finance gap and enhance project readiness from initial identification through feasibility studies. 

The Caribbean remains one of the world’s most vulnerable regions, facing hurricanes, earthquakes, and rising sea levels that threaten economies, ecosystems, and livelihoods, especially among the most at-risk population. To further strengthen disaster response, the Bank introduced a disaster response policy operation and a contingent emergency response component tool to enhance the speed and efficiency of relief efforts.

As climate hazards intensify, Ms. Isaac emphasised the importance of integrating disaster risk reduction and climate adaptation into national development planning. 

“Resilience is not just part of our work; it is the foundation of everything we do. Our success will be measured by how effectively climate and disaster resilience is integrated into national policies, the expansion of climate finance, the adoption of innovative risk management tools, and the ability of our client countries to recover swiftly from disasters,” she said.

Looking ahead, CDB’s key priorities include leveraging new financial instruments and strengthening disaster preparedness and recovery mechanisms.