Barbados launches new climate finance initiative with OPEC Fund

Barbados has partnered with the OPEC Fund for International Development to launch the Vulnerability to Viability (V2V) Compact, a new initiative aimed at helping climate-vulnerable countries access more affordable financing.

The launch took place at the OPEC Fund Development Forum in Vienna and brings together 78 climate-vulnerable economies and more than 15 development finance institutions.

The Compact is a joint initiative between the OPEC Fund and the Government of Barbados in its role as Chair of the Climate Vulnerable Forum and its V20 Finance Ministers.

According to officials, the initiative is designed to provide vulnerable countries with access to more affordable capital, longer repayment terms and financing that is better aligned with national development priorities.

Prime Minister Mia Amor Mottley said the Compact addresses the challenges faced by countries that contribute the least to global emissions but are among the most affected by climate change.

“Countries lead, and finance institutions align,” she said.

Mottley added: “This Compact is about securing not just survival, but viability and prosperity. Our countries deserve sustainable pathways to development, and that can only happen by unlocking affordable capital.”

The V2V Compact will focus on strengthening water, education and health systems in participating countries while improving access to development financing and reducing fragmentation in support programmes.

OPEC Fund President Abdulhamid AlKhalifa described the initiative as a reflection of “solidarity, partnership and practical action”, noting that the organisation has provided US$17 billion in support to V20 countries over the past five decades.

A White Paper outlining practical mechanisms for implementing the Compact is expected to be launched during the Annual Meetings of the World Bank and International Monetary Fund in Bangkok in October.

Barbados said the initiative builds on the principles of the Bridgetown Initiative and forms part of the ongoing effort to reform the global development finance system for climate-vulnerable nations. (PR)

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