Barbados will make a "debt-for-climate" swap with the European Investment Bank (EIB) and Inter-American Development Bank (IDB) providing a $300m guarantee.

As a result, Barbados will issue the equivalent of $295m of sustainability-linked debt for the upgrading of Barbados' climate-resilient infrastructure for clean water, in line with the Global Gateway investment agenda. This would advance the country's efforts to mitigating the impacts of climate change, reducing chronic water shortages and improving wastewater systems.

Commissioner for International Partnerships, Jutta Urpilainen said: “The EU is fully committed to supporting climate-resilient infrastructure projects in our partner countries. The Small Island Developing States, like Barbados, are paying the highest price for their exposure to natural hazards. Barbados is taking a crucial step towards a greener, more sustainable future, and we are proud to be part of this transformation. With the Global Gateway investment agenda, we are following up on July's EU-CELAC Summit commitments to deliver the digital, green and fair transitions with our Caribbean partners. This initiative aligns with our priorities and shows how international partnerships can drive positive change."

The European Union - Latin America and the Caribbean Global Gateway Investment Agenda (GGIA) highlights potential investment projects to help address the region's infrastructure needs, while creating local added value and promoting growth, jobs and social cohesion, helping to achieve the Sustainable Development Goals.

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