The Bahamas is among the Caribbean nations set to benefit from an initiative designed to accelerate private sector investment in climate change mitigation and adaptation projects.

An Inter-American Development Bank (IDB) arm is partnering with the Green Climate Fund (GCF) to launch the Caribbean Net-Zero and Resilient Private Sector Programme, which aims to drive greenhouse gas emission reductions and climate-resilient investment towards the region. The GCF approved up to $118.9m in combined concessional and technical assistance funding to implement the initiative.

IDB Invest said the programme will help to accelerate private sector investment in climate change mitigation and adaptation projects in the Caribbean. The participating countries are The Bahamas, Barbados, Belize, Dominican Republic, Guyana, Jamaica, Suriname and Trinidad and Tobago.

It added that the Caribbean is especially vulnerable to the impacts of climate change. With economies dependent on climate-sensitive sectors such as tourism, agriculture and fisheries, the Caribbean is expected to be disproportionately impacted by the projected sea level rise, increased hurricane intensity and changes in rainfall patterns.

Despite the Caribbean’s strong commitment to climate mitigation and adaptation action, IDB Invest said the region faces a significant financing gap for climate change projects.

“The Caribbean region remains at the heart of IDB Invest’s priorities, which is why I am very pleased that we have received approval from the GCF to launch this programme to support the Caribbean private sector in its efforts to adapt to climate change and reduce emissions,” said James Scriven, IDB Invest’s chef executive.

“Few regions in the world are more vulnerable to climate change-induced natural disasters, such as hurricanes, than the Caribbean, so this programme comes at just the right time. 

The initiative aims to reduce barriers to private sector investment in climate change projects by providing targeted technical assistance funding and blended finance solutions that make them more commercially viable.

Its five priority sectors include sustainable and climate-resilient infrastructure; renewable electricity generation and energy efficiency; sustainable transport, sustainable agriculture and forestry; and the blue economy.

“In the Caribbean and around the world, our climate goals depend on the private and public sectors working together. The Green Climate Fund is proud to partner with the region and IDB Invest to mobilise more private investment for innovative projects with commercial potential in countries bearing disproportionate climate impacts,” said Mafalda Duarte, the Green Climate Fund’s executive director.

IDB Invest finances sustainable companies and projects in a bid to maximise economic, social and environmental development in the region. With a portfolio of $21bn in assets under management and 394 clients in 25 countries, IDB Invest provides a range of financial solutions and advisory services.

The Green Climate Fund (GCF) is described as the world’s largest dedicated climate fund. Its mandate is to foster a shift towards low emission, climate-resilient development in developing countries. It has a portfolio of $13.9bn ($53bn including co-financing) spread across climate action in more than 120 countries. It also builds capacity and helps countries develop long-term plans to fight climate change.

The GCF is linked to the United Nations Framework Convention on Climate Change (UNFCCC) and serves the 2015 Paris Agreement, supporting the goal of keeping average global temperature rise well below 2°C.