The Caribbean Development Bank (CDB) has approved US$50 million in financing for Guyana to strengthen its response to climate change and natural resource management.

The funding, issued under the country’s Second Environmental Sector Policy-Based Loan (PBL), forms part of a broader push by the government to balance rapid economic growth with environmental protection.

The loan represents the second phase of a US$175 million programme, following an initial US$125 million disbursement in July 2025. 

It is financed through the Bank’s Ordinary Capital Resources and is expected to support fiscal stability as Guyana expands climate-resilient infrastructure and environmental management systems.

Director of Projects at CDB, L. O’Reilly Lewis, said the additional financing will help integrate sustainability into national development planning.

“As Guyana continues to experience rapid economic expansion, this additional financing deepens our support for the country’s efforts to embed environmental sustainability into national policy and planning, ensuring that key reforms in biodiversity management, climate resilience and water governance are adequately resourced,” he said.

The policy-based loan supports a range of reform measures aligned with the government’s commitment to equitable climate finance, including efforts to enhance community resilience and expand livelihood opportunities.

According to the Bank, the programme has already strengthened national institutions responsible for managing Guyana’s biodiversity, with improvements in data systems, monitoring capabilities and inter-agency coordination.

It has also supported the restoration of carbon-storing ecosystems and the development of socially inclusive early-warning systems for public health and climate-related risks. In addition, upgrades to climate-resilient water supply systems are expected to better serve coastal communities vulnerable to floods and droughts.

The initiative aligns with Guyana’s Low Carbon Development Strategy 2030 and its commitments under international agreements such as the Paris Agreement and the Convention on Biological Diversity.

The loan also supports the Bank’s Strategic Plan 2026–2035, which prioritises climate action, protection of natural resources and strengthening the ability of member countries to respond to climate-related shocks.