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Securing funds from private and international donors

Caribbean Small Island Developing States (SIDS) can access international climate finance mainly through large global funds such as the Green Climate Fund (GCF), Global Environment Facility (GEF), Adaptation Fund, Climate Investment Funds, and the new Loss and Damage Fund. Additional financing is available from regional and multilateral development banks—such as the Caribbean Development Bank (CDB), Inter-American Development Bank (IDB), and the World Bank—as well as bilateral partners and the European Union (EU).

Funders usually expect projects to show:

  • Strong country ownership, meaning the project aligns with national climate and development priorities.
  • A clear climate rationale, demonstrating how proposed activities directly address climate risks or reduce emissions, backed by data and evidence.
  • Readiness to implement, including feasibility studies, cost estimates, and the capacity to manage funds responsibly.
  • Environmental and social safeguards, with attention to gender equality and inclusion.
  • Monitoring and evaluation systems, with clear indicators to track progress and impact.

Because these requirements are complex, many SIDS begin by working through accredited regional partners while building their own capacity for direct access to funds.

The Inter-American Development Bank (IDB) has identified ways to scale up Nature-based Solutions (NbS) in the Caribbean by attracting private investment. Proven financing tools include:

  • Green bonds, which raise funds for environmental projects.
  • Blended loans, combining concessional (low-interest) and market-rate financing.
  • Land-based financing instruments, such as conservation fees or taxes.
  • Insurance mechanisms, to reduce financial risk from climate impacts.
  • Endowments, long-term funds that provide ongoing support for environmental action.

In Aruba, promising opportunities include creating finance labs for nature-focused projects, developing climate funds and insurance schemes, and exploring how Environmental Tax revenues could directly support climate and nature-positive projects. Partnerships between public and private sectors (Public-Private Partnerships, or PPPs) can also help attract investment.

Feasibility & Local Applicability

Applying for international climate finance can be challenging. It often requires detailed vulnerability assessments, technical and financial studies, and strong implementation capacity. Support from regional entities can help countries and organizations meet these requirements more effectively.

Co-benefits

Accessing international climate funds not only supports adaptation but also strengthens local institutions, builds technical knowledge, and encourages innovation. Successful projects can attract follow-up funding and provide visibility for Caribbean leadership in global climate action.

Equity & Vulnerability Considerations

Projects should prioritize gender equality, social inclusion, and climate justice, ensuring that benefits reach those most vulnerable to climate impacts—such as women, youth, and low-income communities.

Costs

Medium – High

Case-studies & Examples

Literature

Adaptation Options Overview