The Caribbean Development Bank (CDB) on Tuesday said it had entered into an agreement with Italian-based Cassa Depositi e Prestiti (CDP), to provide US$50 million to help regional countries counter the effects of climate change and support the sustainable development of Caribbean countries.
The agreement was signed by the CDB President, Hyginus “Gene” Leon, and the Director International Development Finance Officer at CDP, Antonella Baldino, at the Permanent Mission of Italy to the United Nations in New York.
The Barbados-based bank stated that the financing will expand the pool of loans that the region’s premier financial institution already makes available to its borrowing member countries for official development assistance.
These countries include Belize, Dominica, Grenada, Guyana, Jamaica, St Lucia, St Vincent and the Grenadines and Suriname.
It said the financing will help accelerate the implementation of programmes launched by Caribbean countries aimed at achieving the United Nation’s Sustainable Development Goals (SDGs) by 2030.
“The assistance will support projects related to the management of water resources, the production of energy from renewable sources, the creation of infrastructure for sustainable mobility and the protection of oceans, coasts and biodiversity,” the CDB said.
Leon outlined that the volume of financing needed by the Caribbean countries to achieve the SDGs will require broad support from a variety of sources.
He also said that CDB is committed to creating and strengthening partnerships that will make affordable financing available for the region’s BMCs.
In addition, Baldino indicated that the impacts of climate change are a global issue and that it is imperative to collaborate to tackle the current climate crisis.
“Climate crisis is a global challenge that requires mutual cooperation and collaboration,” he said.
“To this end, we are honoured to join other relevant partners in support of Caribbean countries’ efforts to reach their United Nations SDG commitments,” he added.
Baldino added that it is a target in line with CDP’s 2022-2024 strategic plans that aim to promote sustainable development and accelerate ecological transition at a global level.
Under the arrangements, CDB has responsibility for approval and supervision of projects financed through the Programme.
Projects will be implemented in compliance with CDB’s policies, procedures and fiduciary standards, as well as social, environmental, and gender safeguards.