The Caribbean Development Bank (CDB) is making strides in its initiative to establish a Climate Change Project Preparation Fund, aimed at assisting its Borrowing Member Countries (BMCs) in developing compelling proposals for acquiring climate finance. The fund is expected to enhance the region's capacity to attract more substantial climate finance and improve the technical quality of climate change-related proposals, according to CDB's Division Chief of Environmental Sustainability, Ms. Valerie Isaac.
The fund will be a crucial part of CDB's strategy to increase climate funding for the region by addressing implementation issues faced by BMCs. It aims to ensure that proposals are prepared for implementation and strengthen the regional pipeline of projects capable of attracting impactful investments in climate finance.
Caribbean nations, despite their acute vulnerability and significant needs, have encountered challenges in obtaining funding for climate initiatives due to stringent prerequisites and complex project preparation required for concessional finance from development partners and multilateral climate funds.
CDB is financing preliminary work to establish the Fund. This work includes a study of similar mechanisms managed by global institutions like the Green Climate Fund and the Adaptation Fund. The bank has expressed its intention to establish a comprehensive operational framework for the fund by the end of 2024.
Valerie Isaac expressed that the fund would mitigate these issues, enabling the region to mobilize larger climate finance and accomplish their climate change adaptation and mitigation goals. The fund will also focus on making initiatives 'implementation-ready', fostering high-impact investments, and strengthening the regional pipeline of projects.
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