Barbados completes world first debt swap for climate resilience

Virginia Furness - Reuters - 03/12
Barbados has completed what it calls the world's first 'debt-for-climate resilience' swap which will see it invest $165 million in water infrastructure, food security and environmental protection to help the Caribbean island adapt to the damaging effects of climate change.
  • Barbados completes first debt swap for climate resilient infrastructure
  • Country to invest $165 million to upgrade wastewater and other projects
  • Projects to support access to water, agriculture and marine life
LONDON, Dec 2 (Reuters) - Barbados has completed what it calls the world's first 'debt-for-climate resilience' swap which will see it invest $165 million in water infrastructure, food security and environmental protection to help the Caribbean island adapt to the damaging effects of climate change.
Barbados' new deal is the first debt-swap to free up money directly for climate adaptation and will generate around $125 million to go towards sewage treatment plant upgrades that should boost water supplies and reduce the amount of pollution going into the Caribbean.
Debt swaps have become increasingly popular ways for countries to free up cash to invest in nature conservation projects, with the likes of Bahamas and El Salvador completing deals this year.
Those involved said the new deal sets a benchmark for financing climate adaptation that avoids increasing the burden of public debt and will help meet the $359 billion a year the U.N. says is needed to help developing countries adapt to climate change. Other countries have already expressed an interest in following Barbados to market, sources said.
Water scarcity in Barbados is being exacerbated by the effects of climate change, and water availability for Barbados' people and economic activity like farming is already far less than the global averag...
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