Many recent studies have shown Barbados to be a challenging environment for renewable energy and green technology financing. The country dropped 5 spots in the Climatescope 2013 ranking although the 2014 Electric Light and Power Act tries to stem the tide.
In a push to encourage renewable energy in Barbados, the Inter-American Development Bank (IDB) and the Central Bank of Barbados, by means of a guarantee fund, aimed to incentivize financial institutions to provide credit under favorable conditions for Barbadian enterprises and their green projects, financing between US$ 100,000 and US$ 1 million for up to 10 years with a debt-to-equity ratio up to 80/20.
The objective is to connect quality green projects with financial institutions.
- Provide technical and market advice on investment proposals with the aim of improving the bankability of projects
- Support financial institutions to finance individual loans to green projects by means of guarantees
- Facilitate access to competitive debt financing conditions, in close coordination with local financial institutions, the IDB and the Central Bank of Barbados
Eligible projects include renewable energy (solar PV, biomass, wind, etc.); energy efficiency (retrofit air conditioning systems, boilers, CHP, etc.); green buildings (renovation, automation, new buildings, insulation, etc.); and sustainable development (sustainable infrastructure, EV charging, recycling, green transport, etc.)
Link to Flyer with additional information and requirements.