Barbados: Turning vulnerability into climate action

"Vision without action is merely a dream. Action without vision is merely passing time. But vision with action can change the world," said Prime Minister Mia Amor Mottley. These powerful words underline the country's commitment to deliver results and ensure we win the climate change battle, as Barbados has no choice. In a world where the effects of climate change are becoming increasingly dire, Barbados stands as a beacon of resilience and determination.

For many, Barbados is synonymous with boasting pristine white beaches, highlighting the significance of tourism as its primary driver of growth. However, for Bajans, Barbados is more than just a tourist destination, it's their home. Yet, it faces significant challenges posed by climate change, including coastal inundation and erosion, an increase in tidal and storm surge levels, rising temperatures, more frequent and intense tropical storms, and sea level rise.

Barbados is Ramping Up Climate Action

In this context, the government of Barbados has implemented a series of robust reforms to tackle climate change, starting in 2019 by making a commitment to achieve carbon neutrality by 2030. Towards this objective, the country has significantly ramped up its utilization of renewable energy sources, with renewables now contributing to electricity generation, as well as embracing electromobility for its public transportation. The island has also taken decisive steps to address plastic pollution by implementing a ban on single-use plastics, a move aimed at safeguarding marine ecosystems from the adverse impacts of climate change.

Moreover, the government has made substantial investments in climate-resilient infrastructure projects, including the construction of seawalls and drainage systems to limit rising sea levels, erosion and increased flooding. In terms of biodiversity conservation, Barbados has launched a Marine Spatial Planning process to determine and establish new marine protected areas to preserve its ecosystems, including vital coral reefs and marine species that are vulnerable to the effects of climate change.

Furthermore, the Government has laid the pillars of key international proposals such as the Bridgetown Initiative, which has been a leading voice on the need for financial architecture reforms, urging for the need to address climate change challenges along with liquidity and debt solutions, with a clear focus on the demands from Small Island Developing States. Barbados advocates for increased financial support, disaster clauses in lending deals, technology transfer, capacity building, and debt relief.

In this context, and based on a long and fruitful collaboration, the IDB has been supporting the country in various of these reforms to bolster its resilience and support the country's ambitious decarbonization commitment. Here are the lines of action:

Accelerating Policy Reforms

The IDB supported Barbados with a series of programmatic policy-based loans to support policy reforms to improve land-use planning, control over development, water resource management, and natural asset management. These actions acknowledged the work done by the Government to improve the country's governance for sustainability through the strengthening and modernization of the regulatory framework and it is expected to benefit more than 300,000 Bajans. One of the key milestones achieved is the Physical Development Plan, which is a vision for sustainable growth and development that sets out the principles to guide the synergies between land uses, built form, mobility, community facilities, and physical infrastructure, as well as establishes a framework to facilitate resilient investment, both public and private.

Moreover, in 2023, the government approved by Cabinet two key documents under the IMF's Resilience and Sustainability Facility: a Sustainable Public Procurement Policy, and a Methodology for Budget Climate Tagging. Both were developed with the financial and technical support of the IDB experts, and their implementation will allow them to orient expenses and better identify government spending in sustainability and asses its impact.

Strengthening Climate Resilience

The IDB is supporting the Upgrade of the existing South Coast Sewage Treatment Plant. The project will refurbish the existing influent lift pump station and interconnect piping to the new South Coast Water Reclamation and Re-use Facility for enhanced treatment. The main objective is to increase water resilience and options for agriculture irrigation, as well as enhance aquifer recharge. The Barbados Water Authority will also benefit from institutional strengthening activities, including its capacity to monitor, report, and verify key data.

As a part of our efforts to bolster resilience, the IDB continues to support the Coastal Zone Management Unit to reduce coastal erosion and flooding in vulnerable coastal areas, enhance the economic value of coastal communities and tourist destinations, and ensure improved accessibility for individuals with disabilities. Additionally, it aims to enhance the technical capacity and governance of the country's Integrated Coastal Zone Management public policy to effectively address climate resilience.

Supporting the Reduction of Reliance on Fossil Fuels

Barbados has been actively pursuing decarbonization efforts across various sectors and the IDB has been a critical partner in this journey. Through the private sector arm, IDB Invest, we are supporting alongside BWA the reform and infrastructure needs of the South Coast Water Reclamation and Re-use Facility. IDB Invest will donate resources for the prefeasibility study on the battery and storage options to be considered for the solar PV installation linked to the South Coast Water Reclamation Plant.

The public sector has also benefitted from IDB lending instruments for the implementation of sustainable energy projects, such as the retrofit of 15 public buildings with energy efficiency measures and renewable energy projects and the replacement of over 25 thousand streetlights with LED efficient lightning. These efforts will also focus on schools, with the refurbishment of ten priority sites and the reform of the curricula so they include climate change, blue economy, and sustainable agriculture.

Furthermore, the IDB is assisting Barbados in decreasing its dependence on fossil fuels by promoting sustainable energy practices, which in turn boosts the country's competitiveness. Specifically, the Bank is supporting the diversification of the energy matrix by enhancing grid capacity through battery storage options, thereby facilitating greater penetration of renewable energy. Additionally, the IDB has financed the electrification of the public transportation fleet. Presently, the government-owned vehicle fleet comprises eleven electric cars and vans, along with 39 EV buses, with the Bank funding the twelve most recent ones.

Advancing the Social Agenda

The IDB is leading innovation by integrating climate change considerations into social sectors, aligning with the priorities of the Government of Barbados. In 2023, the IDB approved a US$100 million loan to enhance the effectiveness and efficiency of social policies and ensure the sustainability of social security. Objectives include improving the administrative efficiency of both contributory and non-contributory social protection, strengthening the institutional and normative framework to broaden coverage and enhance the quality of policies promoting gender equality, inclusion of persons with disabilities, and protection of vulnerable groups, and reinforcing the long-term sustainability of social security.

Unlocking the Nature Benefits

The IDB completed a successful debt-for-nature transaction. The operation comprised a US$100 million guarantee from the IDB and US$50 million from The Nature Conservancy that enhanced a blue loan provided to Barbados to existing debt. The savings generated by the operation will be used by Barbados to fund the Barbados Environmental Sustainability Fund to achieve a conservation commitment, currently estimated at US$50 million. Based on this achievement, the Government is now working with the IDB, EIB, and the Green Climate Fund on a Debt for Climate package that will generate fiscal space and foster additional climate-resilient investments.

These groundbreaking projects underscore Barbados' commitment to integrating sustainability, climate resilience, biodiversity preservation, and fiscal planning. The IDB remains unwavering in its support for Barbados' ambitious goals and leadership. Together, we forge a path toward a more resilient, just, and sustainable future for all Bajans.

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