Global Gateway: EIB and Caribbean Development Bank partner to boost resilience to climate change in the Caribbean

• €100 million ($109.4 million) EIB loan supports investments in water supply, wastewater, solid waste collection and treatment, and stormwater management.
• The financing will support projects in up to 14 countries across the Caribbean.
• Projects would also benefit from expert technical advice, thanks to a EUR 17.35m grant from the European Commission’s Caribbean Investment Facility.

Water supply and management and the ocean ecosystem across the Caribbean will receive much-needed support thanks to a new joint initiative announced today by the European Investment Bank (EIB) and the Caribbean Development Bank (CDB). A €100 million ($109.4 million) loan from the EIB will boost CDB support to projects that secure the supply of clean water, improve collection and treatment of wastewater and solid waste and upgrade flood prevention. The investments will help countries adapt to more frequent periods of drought or intense rain caused by climate change and contribute to environmental sustainability through reduced ocean pollution.

The eligible countries for the EIB-supported investments are Antigua & Barbuda, the Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Saint Kitts & Nevis, Saint Lucia, Saint Vincent & the Grenadines, Suriname and Trinidad & Tobago.

“CDB and the EIB continue to enjoy a mutually beneficial collaboration, with this latest initiative providing access to additional concessional resources to 14 states, representing almost three quarters of CDB’s Borrowing Member Countries. More importantly, those countries represent over 19 million people.  Resources such as these are therefore deeply appreciated, as adequate water and sanitation services, and the prevention of water-related disasters, are key to achieving and maintaining development in our region,” said CDB President (Ag.) Isaac Solomon.

“The vulnerability of small island states on the frontline of climate change is at the centre of discussions here in Washington. Working together we can achieve a far greater impact in tackling these challenges than working alone. Partnerships, like the European Investment Bank’s longstanding relationship with the Caribbean Development Bank, mean that we can contribute to projects and initiatives such as the one we have signed today, that support communities and our precious ocean ecosystems as well,” said EIB Vice President Ambroise Fayolle, speaking from Washington DC.  “Investing in sustainable water management is vital for the Caribbean small island developing states on the frontline of extreme weather and climate change.” 

“Caribbean states emit a fraction of the global greenhouse gasses, yet they are facing the most devastating effects of climate change. The EU is committed to supporting its Caribbean partners in the face of climate change and extreme weather through Global Gateway investment strategy. Resilient infrastructure is at the heart of this,” said Jutta Urpilainen, European Commissioner for International Partnerships.

The EIB and the CDB have successfully worked together to support projects benefitting the Caribbean region since the EIB’s first loan to the CDB in 1978. The EIB’s Board of Directors last week approved the allocation of a further €24.4 million ($26.7 million) to support water supply services in four regions of Guyana, under a previous joint operation with the CDB. The project in Guyana will improve the supply of clean water to 5 communities through the construction of five new water treatment plants, replacing old pipes and installing water meters. The new water treatment plants will remove the high iron content in the water and provide water 24 hours a day to all of the households supplied. The project is expected to have a significant impact both in terms of sustainable water management and on the health and quality of life of the communities benefitting.

The Caribbean is vulnerable to climate-change-related extreme weather events and sea-level rise. More violent storms, rising temperatures and unpredictable rainfall are increasing the pressure on both water infrastructure and the surrounding seas. The water sector in the Caribbean is challenged by aging equipment and pipes, leaks, inadequate wastewater treatment capacity and lack of storage capacity. Meanwhile, the marine ecosystem and coastal economy and communities are threatened by warmer seas, ocean acidification and storm surges. Many countries in the Caribbean are small island developing states which are highly vulnerable to climate change while also facing unique economic and social challenges due to their geography. These economies and communities depend on the biodiversity and health of the ocean surrounding them.

Background information

About the Caribbean Development Bank

The Caribbean Development Bank is a regional financial institution established in 1970 for the purpose of contributing to the harmonious economic growth and development of its Borrowing Member Countries (BMCs). In addition to the 19 BMCs, CDB’s membership includes four regional, non-borrowing members (Brazil, Colombia, Mexico, and Venezuela) and five non-regional, non-borrowing members (Canada, China, Germany, Italy and the United Kingdom). CDB’s total assets as at December 31, 2023, stood at US$3.43 billion. These include US$2.03 bn of Ordinary Capital Resources and US$1.40 bn of Special Funds Resources. The Bank is rated Aa1 Stable by Moody’s, AA+ Stable by Standard & Poor’s and AA+ Stable by Fitch Ratings. Read more at caribank.org.

About the European Investment Bank

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.

The EIB is one of the largest lenders to the global water sector, with over €88 billion invested in more than 1 700 projects improving sanitation, providing access to safe drinking water and reducing the risk of flooding. As the EU’s climate bank, the EIB committed to support €1 trillion of climate action and environmental sustainability investments in the next decade. Under its Blue Sustainable Ocean Strategy, the EIB supports investments that will contribute to improve the health of the oceans and their resources. 

More information about EIB’s activities to preserve the oceans.

EIB Global is the EIB Group’s specialised arm dedicated to increasing the impact of international partnerships and development finance.  EIB Global is designed to foster strong, focused partnership within Team Europe, alongside fellow development finance institutions, and civil society. EIB Global brings the Group closer to local people, companies and institutions through our offices across the world. 

About Global Gateway

Global Gateway is the European strategy to boost smart, clean and secure links in digital, energy and transport sectors, and to strengthen health, education and research systems across the world. Through a Team Europe approach, Global Gateway brings together the EU, its Member States and their financial and development institutions to mobilise the private sector to leverage investments for a transformational impact. It aims to mobilise up to € 300 billion in investments. Global Gateway is fully aligned with the UN’s Agenda 2030 and its Sustainable Development Goals, as well as the Paris Agreement. The EIB is a key partner in Global Gateway. It aims to support € 100 billion of investment by the end of 2027, around one third of the overall target of this EU initiative.  

About the Global Gateway Investment Agenda (GGIA) for the Caribbean

One of the main deliverables of the EU-CELAC Summit on 17/18 July 2023 was the Global Gateway Investment Agenda for Latin America and the Caribbean (LAC). EU involvement focuses on green, digital, and fair transitions and requires buy-in from EU Member States and financial institutions to be successful. Key to the success of Global Gateway in Latin America and the Caribbean is the involvement of the private sector. The main priorities for GGIA for the Caribbean are the following: sargassum, maritime transport, renewable energy & water resource management.

About the Caribbean Investment Facility

The Caribbean Investment Facility (CIF) promotes investment in local infrastructure projects, with a view to supporting economic development and growth, regional integration and poverty reduction in the Caribbean. The facility’s goal is to mobilise loans and other forms of support for projects that struggle to raise adequate financing. The CIF fills these funding gaps by pooling grant resources from EU partners and catalysing additional investment.

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