Barbados Executes First Debt-for-Climate Swap

Barbados has made history by completing the world's first 'debt-for-climate resilience' swap, securing approximately $125 million to enhance its water and sewage infrastructure in response to climate change. This innovative financial strategy allows the island to invest in critical projects aimed at improving water availability and reducing pollution without increasing public debt. Prime Minister Mia Mottley highlighted the deal as a transformative model for vulnerable nations facing climate crises, potentially setting a benchmark for future climate adaptation funding. The initiative also aligns with global efforts to mobilize significant resources for climate resilience, addressing the urgent need for developing countries to adapt to environmental challenges. The New South Coast Water Reclamation and Re-use Facility will play a key role in this strategy, aiming to double water availability by 2050. Overall, this landmark deal positions Barbados as a leader in climate finance and adaptation strategies.