Aerial shot of Barbados' coastline. This is not an IFC project. Unpredictable weather events are reshaping the future of small states and island nations. Barbados' technology-focused, data-driven response to climate change can help strengthen its resilience—and can be adapted for wider use. Photo by Armando Gallardo/IFC
Washington D.C., October 26, 2023 – The Green Climate Fund (GCF) and IFC are collaborating on a proposed investment that will increase the resilience of the energy grid in Barbados, particularly during extreme rains, tropical storms, or hurricanes.
At its board meeting this week, GCF approved the provision of up to $41 million in blended concessional financing to support IFC's proposed investment in RenewStable Barbados, a 50 MW solar generation facility with green hydrogen and lithium-ion battery storage that will provide clean and stable electricity to the Barbadian grid.
RenewStable Barbados will represent the first time GCF is supporting an IFC investment through the provision of concessional financing, the first green hydrogen project for IFC, and the first green hydrogen project in the Latin America and Caribbean region. The project is expected to have a significant impact on GHG emissions mitigation (avoiding 693,000 tCO2 emissions over the lifetime of the project) while reducing the country's dependence on expensive fuel imports.
"RenewStable Barbados is an example of the kind of transformative investment that IFC and GCF can make together to support the climate transition," said Susan Lund, Vice President, Economics and Private Sector Development, IFC. "GCF concessional financing will help make this innovative green hydrogen project possible and lower the electricity tariff for the people of Barbados."
The government of Barbados has set ambitious decarbonization targets for 2030, including a target of achieving a 100 percent renewable energy matrix. The proposed project will use intermittent solar photovoltaic generation and combine it with short-term battery storage and long-term green hydrogen storage to provide a clean generation facility that can be dispatched 24 hours a day.
"Our partnership with IFC is grounded in the ambition to deliver transformative projects that can deliver climate impact at scale," said Henry Gonzelez, Deputy Executive Director, GCF. "This proposed investment offers a solution that can be replicated in Barbados and other small island states, ensuring their prosperity while increasing their resilience to climate events."
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org
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About Green Climate Fund
The Green Climate Fund (GCF) is the world's largest dedicated climate fund. GCF's mandate is to foster a paradigm shift towards low emission, climate-resilient development pathways in developing countries.
GCF has a portfolio of USD 13.5 billion (USD 51.8 billion including co-financing) delivering transformative climate action in more than 120 countries.
It also has a readiness support programme that builds capacity and helps countries develop long-term plans to fight climate change. GCF is an operating entity of the financial mechanism of the United Nations Framework Convention on Climate Change (UNFCCC) and serves the 2015 Paris Agreement, supporting the goal of keeping average global temperature rise well below 2°C. www.greenclimate.fund/
