PROVIDENCIALES, Turks and Caicos Islands (CMC) — The European Investment Bank (EIB) Wednesday signed a US$110 million agreement with the Barbados-based Caribbean Development Bank (CDB) to support investment projects in the region under the CDB’s climate action policy.

“We are delighted to be signing this new climate action loan with CDB, which is the result of a fruitful partnership that lasts for almost four decades, to support new projects in the Caribbean,” said EIB Vice President, Pim Van Ballekom, during the signing ceremony on the side-lines of the 47th annual meeting of the CDB Board of Governors here.“This partnership is currently supporting CDB’s efforts to mainstream climate action to help its borrowing member countries (BMCs), which are all considered Small Island Developing States, to adequately tackle risks related to climate change. Caribbean countries face economic and social challenges which must be addressed whilst ensuring resilience to climate change,” he added.CDB President Dr Warren Smith said that through this new line of credit the bank will be able to provide to its BMCs much needed low-cost financing to address the climate impacts already affecting these countries.“The line supports our ongoing work to build climate resilience and the adaptive capacities of BMCs, as they work towards their goal of achieving sustainable development. The signing of this agreement reinforces the longstanding partnership between EIB and CDB, and signals strengthened cooperation between our two institutions,” he added.The CDB-EIB Climate Action Framework Loan II builds on the US$65 million Climate Action Line of Credit (CALC) signed between EIB and CDB in 2011, and which supports nine projects in seven Caribbean countries.The EURO 100 million (One Euro =US$1.29 cents) climate action initiative is the EIB’s biggest loan to the Caribbean.The CDB said that eligible investments under the Climate Action Framework Loan II include climate change mitigation, adaptation and resilience projects in renewable energy, energy efficiency, road transport, water infrastructure and community-level physical and social infrastructure that reduce greenhouse gas emissions and improve resilience to the impacts of climate change.It said that a healthy pipeline of climate action projects amounting to over USD 300 million for this new loan has been developed with support of an EIB-funded technical assistance programme.So far, CDB, the region’s premier financial institution, has committed EURO 50 million, the total resources under the ongoing Climate Action Line of Credit for nine projects, noting that this co-financing is associated with total project financing of approximately US$191 million from CDB loans/grants, EIB CALC, counterpart and other sources of financing.