The Green Climate Fund and the Government of Barbados have announced that a groundbreaking project that leverages an innovative financing model to scale up climate action and simultaneously avoid increasing the burden of public debt is all set to begin implementation.
The pioneering project, with huge positive implications for climate resilience in the region, was on Friday, March 14, 2025, greenlighted for its first injection of GCF finance.
The $110 million Barbados Climate Resilient South Coast Water Reclamation Project financed jointly by GCF (Green Climate Fund) and the IDB (Inter-American Development Bank) is the product of the world’s first debt-for-climate resilience conversion.
This investment will reduce water loss, improve sewage management, reduce marine and groundwater pollution, protect the quality of marine ecosystems, nearshore reefs, and groundwater resources and safeguard public health.
Prime Minister of Barbados, Mia Mottley, said: “In the face of the climate crisis, this groundbreaking transaction serves as a model for vulnerable states, delivering rapid adaptation benefits for Barbados. With upfront funding from the Green Climate Fund and Inter-American Development Bank, together with support from other valuable partners, we are building a state-of-the-art facility to boost water management, food security, and resilience – showcasing how innovation and cooperation drive environmental and fiscal gains.”
GCF Executive Director, Mafalda Duarte, said: “Today is a milestone moment that clearly signals Barbados’ regional and global leadership in innovative and effective climate action. This first-of-its-kind project will strengthen food, energy and water security for vulnerable communities without adding further public debt.”
Under the leadership of the Government of Barbados, the south coast sewage treatment plant will be upgraded into a crucial water reclamation facility for the region. The facility will produce water suitable for agricultural irrigation and groundwater recharge.
The pressing need for more climate-resilient infrastructure was painfully highlighted during last year’s 2024 hurricane season, one of the costliest ever. Hurricane Beryl devastated communities, particularly along the country’s south and southwest coasts. By 2050, climate-related disasters are projected to cost the Caribbean region $22 billion per year- roughly 10% of current GDP.