International Development Grant
CARICOM Climate Adaptation Fund
Project Number: CA-3-P009524001
Status: Operational
Country/Region:
Regional Focus:
Maximum Contribution: $20,000,000.00
Start Date: July 18, 2020
End Date: September 30, 2024
Duration: 4.2 years
Project Description
This fund contributes to insulating Caribbean Community (CARICOM) member countries from disaster risks and frees up fiscal space to support their essential needs which have increased due to the COVID-19 pandemic. The Fund consists of two components. The first enhances post-disaster response through the coverage of premiums to the Caribbean Catastrophe Risk Insurance Facility for the nine CARICOM member countries eligible for Official Development Assistance for a two years. The second component assists in developing gender-sensitive innovative financing instruments to mobilize private capital for climate adaptation and disaster mitigation to benefit all CARICOM members.
Expected Results
The expected outcomes for this project include: (1) covering climate risks for nine CARICOM governments over two years in Antigua & Barbuda Belize Dominica Grenada Guyana Jamaica St. Lucia St. Vincent and the Grenadines and Suriname; and (2) developed innovative financing instruments to catalyze private investment in climate adaptation and disaster resilience.
Progress & Results Achieved
Results achieved as of September 2024 include: (1) covered disaster insurance premiums through the Caribbean catastrophe risk insurance facility for 7 eligible countries from June 2020 to May 2021 and June 2021 to May 2022. These countries include Antigua and Barbuda Belize Dominica Grenada Jamaica St. Lucia St. Vincent and the Grenadines; (2) supported ongoing engagement with Guyana and Suriname to facilitate their future membership in the insurance facility. This is possible once risk insurance products are available that to meet their specific needs; (3) provided technical assistance to identify and design financial tools to support CARICOM member states’ climate resilience; and (4) added funds to 7 countries’ Caribbean catastrophe risk insurance facility tropical cyclone and excess rainfall insurance policies. As a part of the agreement a portion of insurance payouts go to individuals impacted by the disaster. In response to Hurricane Beryl (July 2024) these top-ups increased the total insurance payouts received by Grenada Jamaica St. Vincent and the Grenadines by approximately $7.7 million increasing the funds available to provide critical support to the most impacted people.
Key Information
Executing Agency:
Caribbean Development Bank
Reporting Organization:
Global Affairs Canada
Program:
NGM Americas
Last Modified:
September 19, 2025
Development Classifications
DAC Sector:
Aid Type: Contributions to specific-purpose programmes and funds managed by implementing partners
Collaboration: Bilateral
Finance Type: Aid grant excluding debt reorganisation
Selection Mechanism:
Department-Initiated