Plugging the finance gap in the Caribbean

  • Article type News update
  • Publication date 02 Dec 2023

The Green Climate Fund announced a new co-financing platform at COP28 in Dubai, with funding of USD 1.2 million to develop the initiative.

The Green Climate Fund’s portfolio is growing through support provided to the Blue Co. Caribbean Umbrella Coordination Programme – a key initiative to bridge the financing gap and spur “blue economy” investments throughout the Caribbean. The blue economy refers to activities and societies that rely on coastal, marine resources and ecosystems. It involves sectors such as offshore wind energy, tourism, fishing, ecosystem management, agriculture and transport.

In the Caribbean, the sea is more than water. It is the bedrock of regional economies and puts food on tables. In the face of the climate crisis, those same waters that have given so much threaten to take everything away.

The Caribbean needs approximately USD 175 billion by 2030 to fortify marine biodiversity, enhance sustainable fishing practices and bolster coastal defenses against climate change. Less than USD 10 billion has been invested in these critical areas since 2015.

This new programme establishes a co-investment platform, supporting national and regional blue economy frameworks coordinated through the Caribbean Development Bank and Caribbean Climate Change Community Centre, our regional partners. It boosts investment in innovative financing projects with the potential for scaling up or replication – such as blue carbon credits from Caribbean seagrass – to microfinance facilities for small businesses.

The Green Climate Fund is working to enable all 14 countries of the Caribbean to stand strong together in the face of climate threats. Globally, GCF has committed over USD 1.3 billion to 35 blue economy initiatives across 70 countries, benefiting over 220 million people.

Those attending the event included Prime Minister Philip Davis of the Bahamas, Prime Minister Roosevelt Skerrit of Dominica, the President of the Caribbean Development Bank, Hyginus ‘Gene’ Leon and the Executive Director, Colin Young of the Caribbean Climate Change Community Centre – the Green Climate Fund’s delivery partner.