Barbados Blue Green Bank set to Fund Climate-Resilient Projects: Legal Framework and Objectives Explained
June 12, 2024
The Blue Green Bank, launching soon, will fund climate-resilient projects in Barbados. The bank aims to support green energy technologies, climate adaptation, and lower finance costs for eco-friendly initiatives.
The new Blue Green Bank set to be launched here will fund climate resilient projects.
The legal framework for its creation was debated in the House of Assembly on Tuesday, as Minister in the Ministry of Finance Ryan Straughn, outlined the background to its establishment during the Barbados Blue Green Bank Bill 2024.
He told the Lower House that in some cases, grants will be provided, in other instances loans will be offered to applicants, while in some cases, the Barbados Blue Green Bank will partner with other agencies to provide specific instruments in order to drive financial innovation in the climate finance space.
“It is timely. We want to make sure that everywhere possible and appropriate, the policy that government is pursuing that there is a mechanism to have those policies come to fruition.
“The Blue Green Bank will invest in green energy technologies, low emission technologies or renewable energy technologies and invest directly or indirectly in projects designed to promote climate resilience and climate adaptation,” Straughn explained.
According to the Minister in the Finance Ministry, the bank’s focus will be on lowering the finance costs of green and blue projects or instruments that generate revenue in relation to this.
“You’re not going to run up to the Blue Green Bank and say you want to borrow money to buy a diesel van. . . . Let’s say for example, some of the PSV owners want to convert their vans to electric . . . . That fits squarely within the mandate of the Blue Green Bank to deliver,” Parliament was informed by the Christ Church East Central MP.
He said the bank will be positioned to assess proposals and provide the financing directly or work alongside other institutions to lower the cost of financing in order to help those types of interventions to be delivered.
Straughn said taxi drivers, ZM and BT vehicle owners can utilise the BBGB to help finance the changeover to electric vehicles.
“The same way the Transport Board has been acquiring electric vehicles, we want the rest of the private sector and PSVs to equally do the same,” he added.
He also identified agriculturally based businesses such as those involved in areas such as aquaponics and green houses as appropriate for BBGB financing.
Those involved in green technologies, alternative energy projects, and climate resilient housing and infrastructure can also apply. (IMC1)
