Canada Allocates $97 Million for Climate Adaptation in Barbados

Canada says it will deploy an estimated US$97 million through the GAIA Climate Loan Fund, which is designed to provide long-term loans for climate adaptation and mitigation projects across emerging markets and developing economies.

It specifically targets regions highly vulnerable to climate change, including Least Developed Countries (LDCs) and Small Island Developing States (SIDS).

A government statement issued Thursday following talks between Prime Minister Mark Carney and Barbados Prime Minister Mia Mottley, said Canada viewed the GAIA Climate Loan Fund, the landmark blended finance platform co-created by FinDev Canada and Mitsubishi UFJ Financial Group (MUFG), with support from the Green Climate Fund, as a platform to reduce the burden of public dollars by adding private and philanthropic financing to fund development projects.

The statement said that two leaders welcomed the announcement earlier this week that the Barbados-based Caribbean Development Bank board of directors had the First-Loss Portfolio Credit Guarantee with the government of Canada.

Carney had announced the initiative at the last G7 Leaders’ Summit in June last year and the CDB said that the US$200 million guarantee will significantly strengthen the bank’s ability to deliver development financing across the Caribbean.

“Working alongside the government of Canada, this will expand financing for Caribbean development, as announced at the G7 Summit in Kananaskis,” the statement said, adding that Canada has contributed CAD$170 million (One CAD$=US$0. 72 cents) to the Clean Energy and Small Island Developing States (SIDS) Resilience Facility.

The facility, managed by the World Bank, supports projects to reduce emissions, support clean energy, and better prepare for natural disasters.

Prime Minister Mottley praised Carney for the leadership that you have been showing, not just for Canadians, but for the hemisphere and the rest of the world.

“Barbados and Canada have had a long, long long relationship, long before we were even though of, but we have learnt where we have leaders who have a strong relationship much happens,” Mottley added.

The statement said that during the talks Prime Minister Carney emphasized the “strong partnership” between Canada and Barbados.

“With 60 years of diplomatic ties, a dynamic trade relationship, and shared values of inclusivity and sustainability, Barbados is a key partner to Canada and a leader in the region,” Carney said.