Today in Incheon, Korea, the Board of the Green Climate Fund, the world’s largest climate fund, approved a US$15m investment in the capital of the proposed Barbados-based Blue Green Bank. The Government of Barbados annoucened the establishment of the Blue Green Bank at the Summit for a New Global Financing Pact in Paris last month, so today's news brings it one step closer to fruition.
The Blue Green Bank is expected to have a capital base of more than BDS$80m and a capacity to lend BDS$500 million.
Prime Minister Mottley said: “Today in the wake of record-breaking global temperatures we are certain climate change is upon us and most invest to protect our citizens from hurricanes, flooding and droughts, preserve our natural capital, and pursue an aggressive net zero target.”
The Bank is intended to invest in green affordable homes, assisting with providing hurricane resilient roofs, the electrification of transport, and other ‘Paris-aligned’ investments.
Prime Minister Mottley remarked: “This will be a game changer, giving us the ability to better finance climate resilience and action. We see the Blue Green Bank playing a particularly critical role in accelerating our transition to net zero, boosting resilience, enfranchising workers, draw in private-sector investment and prudently managing public finances and public debt levels.”
The Blue Green Bank proposal builds on the Government’s ongoing climate policy reforms supported by the Resilience and Sustainability Facility with the International Monetary Fund and reflects a new “system” approach of intense cooperation with all our development partners, including the Green Climate Fund, the critical financing component of the 2015 Paris Agreement.
Prime Minister Mottley added: “Much work went into readying the proposal for the GCF Board meeting, and I would like to thank the teams at the Green Climate Fund, Pegasus, our diligent accredited entity and officials in the Barbados Government such as Special Advisor to the Government on Climate Change Professor Avinash Persaud, Director of the Roofs to Reefs Programme Ricardo Marshall, and Juanita Thorington-Powlett.”
“We are also grateful for the preparatory financial support from the Green Climate Fund, the International Monetary Fund, US AID, and Rockefeller Foundation.”
“We hope this Bank demonstrates to others what is bankable, crowds in other investments, and plays a critical role in building a more resilient and sustainable nation, communities and people.”
“We hope it will become a model for others and part of a global network of similar institutions, sharing best practices, policies, instruments, and investments to support diversification.”
Read more about the Blue Green Bank from the Green Climate Fund: