(MENAFN- Caribbean News Global) BRIDGETOWN, Barbados – The loans and other operations of the Caribbean Development Bank (BDC) are in line with the objectives of the Paris Agreement. As the premier multilateral development bank in the Caribbean, the CBD plays a crucial role in helping its borrowing member countries (BMCs) build their climate resilience in the context of sustainable development and poverty eradication. The CBD will therefore continue to help catalyze the transition of BMCs to climate-resilient and low-carbon development pathways.
BMCs are primarily small island, developing and low-lying coastal states that are highly vulnerable to the impacts of climate change and contribute little to global greenhouse gas emissions. These countries are largely focused on adaptation to climate change while pursuing national mitigation efforts to meet the long-term goals of the Paris Agreement. Even at a 1.5 Â° C increase in global average temperature, BMCs are expected to experience significant climatic risks that will strain their adaptive capacities. The âParis Alignmentâ for BMCs is therefore shaped by the distinctive characteristics and climate change priorities of BMCs. These priorities are articulated in Nationally Determined Contributions (NDCs), National Adaptation Strategies, Biodiversity Strategies and other related national and regional policies, strategies and plans. The financial flows of the CBD – and therefore the measures of its âParis alignmentâ – reflect these priorities.
Given the focus by BMCs on the adaptation goals of the Paris Agreement, the bank continues to support BMCs to improve the resilience of the most vulnerable groups and infrastructure in key climate-sensitive sectors such as as agriculture, water, road transport, energy and tourism. . All BDC-funded projects incorporate a climate risk and vulnerability review and, where necessary, in-depth climate risk and vulnerability assessments to help integrate climate resilience considerations into major capital investments in the region. . CDB also systematically promotes environmental sustainability across its portfolio by applying environmental and social risk management procedures that use the âdo no harmâ and âdo goodâ principles.
CBD supports decarbonisation efforts in the Caribbean. The bank promotes the transition from fossil fuels – a priority that the CBD has helped to put into practice through several partnerships. Over the past three years, the bank has made no loans to fossil fuels and plans to further strengthen its support for sustainable energy through its revised energy sector policy and strategy, which is currently underway. elaboration. The CBD has also provided significant technical assistance and financing from its own resources to support the transformation of the energy sector in several BMCs and has ambitious plans to further scale up this support in the years to come.
The CBD understands the importance of catalyzing private sector investments for ambitious climate action in the Caribbean. The Bank deepens its engagement with the private sector and actively promotes private sector development and competitiveness by supporting an enabling business environment and equitable gender participation in business and facilitating public-private partnerships for climate resilience. The CBD also helps BMCs develop and implement policies and strategies that incentivize the private sector to mitigate and adapt to climate change, while embracing the transition to net greenhouse gas emissions.
The mobilization and effective use of climate finance is of paramount importance. The CBD has made significant progress in funding BMC projects and programs to meet their commitments in the Paris Agreement. The bank has made significant concessional climate finance available to BMCs through strategic partnerships with several regional and international development partners. Between 2017-20, climate finance for the CBD stood at around US $ 223 million, or 15% of project approvals during this period. The CBD will dramatically increase its lending and support for climate action in the years to come. This includes a commitment to allocate 25-30% of the CBD’s own resources to climate action by 2024. The CBD will also mobilize additional concessional climate finance through global climate funds.
The CBD is simultaneously strengthening its capacity to manage and monitor its climate action, and has started to systematically track its climate finance flows using the joint methodology of the Multilateral Development Bank (MDB). The bank will continue to strengthen existing partnerships and develop new ones, scale up its climate finance to pursue transformational investments, and further increase its capacity to improve the effectiveness of its climate action.
In addition to integrating climate change considerations into brand new policies and strategies, the CBD is implementing several initiatives to reduce the carbon footprint of its internal operations. The bank also continues to integrate climate change considerations into policy support and country engagement strategies, including helping BMCs develop long-term strategies.
The nature of the CBD’s continued financial and technical support to BMCs to meet their commitments under the Paris Agreement, and its ambitious climate-related plans, reflect the alignment of the Bank’s loans and other operations with the objectives of the Paris Agreement. Nonetheless, the CBD recognizes that more can be done. CDB will strengthen energy efficiency standards across its portfolio; increase the systematic application of the shadow price of carbon; improve monitoring of greenhouse gas emissions at project and portfolio level; and improve the disclosure of information on the bank’s climate-related work, particularly with respect to the private sector. This progress is expected to be fully realized by the end of 2022.
The CBD will work closely with other multilateral development banks to refine the Paris Alignment assessment methodologies, including to ensure that commonly used measures meet the full range of adaptation needs in the countries. Caribbean small and vulnerable developing island countries.
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