The Caribbean Development Bank (CDB) approved USD226.7 million in climate action financing in 2025, the highest level of climate-related investment in the institution’s history.

The figure represented about 50 per cent of the bank’s total project approvals for the year and more than doubled the USD101.5 million committed in 2024.

The increase was largely driven by a USD125 million environmental Policy-Based Loan to Guyana, along with similar financing packages of USD30 million each to Dominica and Saint Vincent and the Grenadines.

According to the bank, the loans will support policy reforms related to biodiversity conservation, climate action and water resource management. The funding is also intended to strengthen the technical and financial capacity of member countries to withstand and recover from climate shocks.

Explaining the bank’s focus on climate investment, CDB Division Chief for Environmental Sustainability Valerie Isaac said the issue poses a serious threat to the region.

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

Speaking at the bank’s Annual News Conference in Bridgetown, Barbados, she said strengthening resilience remains essential for the Caribbean.

“Resilience is neither an option nor a luxury. It is a fundamental requirement for regional growth and stability,” she said.

In addition to its own financing approvals, the bank secured USD27 million in grant and loan funding from the Green Climate Fund (GCF) for the Integrated Utility Services Programme. The initiative, which has a total investment value of more than USD68 million, aims to expand energy efficiency and distributed renewable energy, including rooftop solar systems, in Barbados, Belize and Jamaica.

A further USD$27 million in GCF grant funding will support the Caribbean Hydrometeorological and Multi-Hazard Early Warning Services Project. The project is expected to upgrade forecasting systems in Belize and Trinidad and Tobago and improve disaster preparedness for an estimated 1.8 million people.

The bank also announced the operationalisation of its Climate Change Project Preparation Fund, which is designed to help address project pipeline challenges and increase the number of climate initiatives ready for investment in borrowing member countries.

Looking ahead to 2026, the CDB said it plans to accelerate its climate initiatives, including the development of a USD200 million regional blue economy programme aimed at protecting marine resources while supporting job creation in ocean-related industries.

The bank also intends to launch a regional platform to develop investment portfolios based on national energy and transport priorities, while expanding support for water sector resilience and locally led climate adaptation projects.

“The decisions and actions we take today will dictate the Caribbean’s development trajectory for the next half-century,” Isaac said.

“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 announcement was made during the CDB’s Annual News Conference held on March 3, 2026, at the Frank Collymore Hall in Bridgetown, Barbados.