The Caribbean Community (CARICOM) Secretariat has welcomed an initiative of the CARICOM Committee of Central Bank Governors and the International Finance Corporation (IFC), that will create a regional green finance taxonomy.
The International Finance Corporation (IFC), part of the World Bank Group announced the initiative last week, indicating that the people of the English-speaking Caribbean stand to benefit from the development of the regional green finance taxonomy that will lead to greater investment in climate-friendly projects and help drive more inclusive and sustainable economic growth.
Under the cooperation agreement, the CARICOM Committee of Central Bank Governors and the IFC will develop guidelines and parameters to clearly define green assets. The new taxonomy will deepen climate finance options in the English-speaking Caribbean, encouraging more lending and investment to support each country’s climate mitigation and adaptation goals, and boost green jobs creation, a press release from the IFC said.
“This partnership with IFC represents a pivotal moment for the Caribbean’s financial resilience and climate adaptation efforts. While our region contributes less than 1% to global greenhouse gas emissions, we face disproportionate climate impacts. By establishing clear green finance guidelines, we’re creating the infrastructure needed to channel more private capital toward climate-resilient projects—from renewable energy systems to hurricane-resistant infrastructure,” said Dr. Kevin Greenidge, Governor of the Central Bank of Barbados and Chairman of the CARICOM Committee of Central Bank Governors.
“This taxonomy will help our financial institutions better assess and fund the green investments our economies desperately need to build back better and stronger after each climate shock.”
“As rising sea levels and increasingly frequent extreme weather events threaten lives and livelihoods, Caribbean Small Island Developing States face a climate finance gap of nearly $55 billion by 2030,” said Ronke-Amoni Ogunsulire, IFC Regional Manager for the Caribbean. “A robust private sector and deeper climate finance markets are essential to supporting the region’s adaptation efforts and unlocking a sustainable future for its people. We are proud to partner with CARICOM in this critical endeavour.”
Welcoming the initiative, the CARICOM Secretariat said it aligns with the mandate given by the Conference of Heads of Government that regional institutions should work towards ramping up domestic resource mobilisation to build economic and climate resilience and drive inclusive growth and sustainable development in the Community.
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