Support for Enabling Environment Conditions for the design and execution of Innovative Financial Instruments in CCB

The resources of this technical cooperation (TC) will support the Caribbean Countries Cluster of the IDB (CCB), as they design and execute innovative financial instruments, such as Debt for Climate/Nature and thematic bonds. The idea of the project s to apply lessons and build capacity to expand and adapt to all seven target countries of the ONE Caribbean Program. Innovative climate finance opportunities are essential for Caribbean countries facing increasing debt burdens. One promising avenue is the development of "green and blue bonds", which focus on funding climate as well as ocean-based climate resilience and sustainable marine projects. These bonds can attract private investment and provide new revenue streams while enhancing climate investments and promoting the protection of marine ecosystems. Another opportunity lies in leveraging blended finance mechanisms that combine public, private, and philanthropic funding to de-risk investments in climate adaptation projects. Additionally, debt-for-climate swaps, where a portion of a country's debt is forgiven in exchange for commitments to climate action, can alleviate fiscal pressures while promoting environmental sustainability. These innovative financial instruments are crucial for enabling Caribbean nations to enhance climate resilience without exacerbating their debt challenges.

Project Detail

Country

Regional

Project Number

RG-T4561

Approval Date

November 1, 2024

Project Status

Implementation

Project Type

Technical Cooperation

Sector

ENVIRONMENT AND NATURAL DISASTERS

Subsector

CLIMATE CHANGE FINANCING

Lending Instrument

Lending Instrument Code

Modality

Facility Type

Environmental and Social Impact Category (ESIC)

Total Cost

USD 750,000.00

Country Counterpart Financing

Original Amount Approved

USD 750,000.00

Financial Information

Operation Number	Lending Type	Reporting Currency	Reporting Date	Signed Date	Fund	Financial Instrument
ATN/OC-21216-RG	Sovereign Guaranteed	USD - United States Dollar	Jan. 22, 2025	Nov. 1, 2024	Ordinary Capital	Nonreimbursable

Operation Number

ATN/OC-21216-RG

Lending Type: Sovereign Guaranteed
Reporting Currency: USD - United States Dollar
Reporting Date: Jan. 22, 2025
Signed Date: Nov. 1, 2024
Fund: Ordinary Capital
Financial Instrument: Nonreimbursable

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Implementation Phase

https://www.iadb.org/document.cfm?id=EZIDB0002409-1024959962-25

TC Document

Techcnical Cooperation Document.pdf

Nov. 04, 2024

English