Barbados has secured the world’s first “debt-for-climate” swap to finance crucial water and sewage projects that will help the island cope with the destructive impacts of climate change.
Through a deal with international funding partners, the Caribbean island nation was able to replace outstanding debt with less expensive financing, which generated a savings of $125 million to be used to increase food security while enhancing water resources management, a press release from the European Investment Bank (EIB) said.
“In the face of the climate crisis, this groundbreaking transaction serves as a model for vulnerable states, delivering rapid adaptation benefits for Barbados. With upfront funding from our partners, we are building a state-of-the-art facility to boost water management, food security, and resilience — showcasing how innovation and cooperation drive environmental and fiscal gains,” Prime Minister Mia Mottley said in the press release.
Countries have been embracing more debt swapsin order to make …