Barbados' Landmark Debt-for-Climate Resilience Swap

Barbados has completed the world's first 'debt-for-climate resilience' swap, investing $165 million to improve water infrastructure, food security, and environmental protection. This initiative is designed to help mitigate climate change effects. The Caribbean island aims to reduce pollution and enhance water management by 2050.

Barbados has made history with the world's first 'debt-for-climate resilience' swap. This groundbreaking deal enables the Caribbean island to invest $165 million into water infrastructure, food security, and environmental protection, directly addressing the adverse effects of climate change.

The initiative will set a new funding benchmark for climate adaptation without increasing public debt. This approach aligns with global efforts to raise the $359 billion needed annually to help developing nations adapt to climate change. Barbados' Prime Minister, Mia Mottley, an advocate for climate-vulnerable countries, praised this rapid adaptation model.

The New South Coast Water Reclamation and Re-use Facility is central to Barbados' strategy. With help from international banks and funds, the project aims to double the island's water availability by 2050. The effort is part of Barbados' broader economic and environmental goals, including reducing its debt-to-GDP ratio significantly by 2036.

(With inputs from agencies.)