– To bolster regional development, climate resilience
VICE President, Dr Bharrat Jadgeo is set to lead a specialised group focusing on financial strategies to bolster the Caribbean Community (CARICOM) Development Fund, aiming at unlocking additional resources for regional growth and sustainability.

This announcement was made during the closing press conference of the CARICOM Heads of Government 46th Regular Meeting, which was held at the Marriott Hotel, Georgetown.
President Dr. Irfaan Ali, who is the current CARICOM Chairman, outlined a consensus among member states to consolidate regional financing aimed at fostering growth, resilience, and adaptation to climate change.

“CARICOM will mobilise financing for the region, focusing on specific areas…whilst at the same time we coordinate our finances through a mechanism to deal with adaptation and resilience,” President Ali stated, highlighting the strategic approach towards a unified and prosperous Caribbean.

Expanding on the financial strategies, the Prime Minister of Barbados, Mia Mottley, highlighted the importance of transitioning from continuous crisis management to sustainable economic growth.

She stressed the significance of the CARICOM Development Fund in mitigating disparities within the single market and economy, stating, “The fund acts as a compensatory mechanism for disadvantaged countries, sectors, and regions, essential for equitable growth within our community.”

A key resolution from the meetings was the planned third replenishment of the CARICOM Development Fund, with Vice President Jagdeo at the helm of a working group dedicated to unlocking further funding.
This initiative, she explained, aims to facilitate greater access to necessary resources for Caribbean nations, ensuring they can pursue sustainable development pathways.

Additionally, the CARICOM leaders have pledged to support the Blue Green Investment Bank, a novel institution dedicated to funding climate resilience and adaptation projects across the region.

Mottley explained that this initiative has seen significant financial commitments, with the Green Climate Fund, Barbados, Guyana, and the Bahamas each contributing US$15 million, alongside a US$2.5 million contribution from USAID.
She disclosed that this collective effort amounts to US$75 million in seed capital, with aspirations to reach at least US$100 million.

However, she pointed out that the ultimate goal is to leverage this capital to support extensive lending activities, potentially reaching up to US$500 million for resilience projects.
Jagdeo’s role is critical, leveraging his vast experience in finance, sustainable development, and climate action to steer this initiative towards unlocking private sector liquidity.

This strategy, as PM Mottley puts it, aims to facilitate a “win-win” scenario, where higher interest rates benefit households and companies, while governments gain access to concessional funding for growth and resilience.
The rationale behind these investments, she explained, is underpinned by a compelling economic argument: for every dollar spent on adaptation and resilience, an estimated $7 in losses is averted.

This cost-benefit analysis supports the proactive investment in climate adaptation measures, illustrating the financial prudence of strengthening resilience against the escalating impacts of climate change.

Through these concerted efforts, CARICOM is setting a precedent for regional collaboration in addressing the intertwined challenges of economic development and environmental sustainability.

The Prime Minister, in her explanation, emphasised the close collaboration between Jadgeo and herself, with the expectation that the group will generate reports and recommendations within four months to facilitate increased funding for the CARICOM Development Fund.