IDB and Barbados Boost Coastal Resilience against Climate Change

The new operation, signed by IDB President Goldfajn and Barbados Prime Minister Mottley, promotes climate-resilient investments.

PUNTA CANA, Dominican Republic — Inter-American Development Bank (IDB) President Ilan Goldfajn and Barbados Prime Minister Mia Amor Mottley signed today a US$50 million loan to support Barbados in its efforts to boost the climate resilience of its coastal areas and foster climate-resilient economic development. The signing took place during the Annual Meeting of the Boards of Governors of the IDB and IDB Invest, its private-sector arm, in Punta Cana, Dominican Republic.

This project is part of IDB Group’s efforts to promote climate-resilient investments, a priority of the Bank's “One Caribbean” flagship program, which aims to promote the sustainable development of the Caribbean with a sharpened focus on high-impact initiatives  

IDB President Ilan Goldfajn said: “The coastal area in Barbados remains an essential asset for economic activity, but also increasingly vulnerable to climate change. With this project, we're supporting the development of an integrated and sustainable coastal zone that also ensures that people with disabilities and women have safe and secure access to coastal areas and beaches..

Barbados Prime Minister Mia Mottley said: “Barbados and the IDB have been working together to combat the deleterious effects of the climate crisis for over 40 years. Today, this partnership continues and shows, one more time, a shared commitment to climate-resilient investments and to support vulnerable countries like Barbados tackle the climate crisis, in particular in the area of coastal conservation. This comes on the heels of the debt for nature swap (blue bonds) that we were able to settle with the assistance of IDB and The Nature Conservancy in 2022.”

Barbados has 60 miles of coastline, 20 of which are central to the country’s tourism industry, attracting over one million visitors annually and accounting for 13% of the country’s domestic product (GDP). The coastline is also highly valuable for community fisheries and international logistics but is threatened by challenges such as declining coral reefs, erosion and coastal flooding.

The great majority of the project’s resources (over 95%) will be allocated to the development of integrated coastal infrastructure at five priority sites, including offshore breakwaters, drainage channels, and boardwalks, with the primary objective of reducing coastal climate risks.

The project, approved by the IDB Board on January 10, is expected to benefit approximately 6,500 residents in coastal areas, including Oistins, Rockley Beach to St. Lawrence Gap, Clinketts, Sand Street, and Mullins and almost 2,000 people who directly enjoy the beaches’ ecosystem services that make recreation and other activities possible.