Caribbean Economic Growth Linked to Climate Resilience
The regional development bank is shifting its financing strategy to help countries recover from climate-related economic shocks.
Updated on Oct. 20, 2026 in Economic Policy
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Caribbean Development Bank president Daniel M. Best urged leaders on September 15, 2026, to prioritize climate resilience in economic planning. The push comes as the region faces a complex landscape of shifting trade and climate-related risks.
Why it matters
Incorporating environmental and social resilience into fiscal strategy can help nations create the necessary space to recover from climate shocks. These measures are designed to improve access to financing and protect long-term economic growth across the Caribbean.
Regional economic growth slowed to 0.6 percent in 2025, down from 1.4 percent in 2024. The Caribbean Development Bank projects a modest recovery to 1.1 percent growth in 2026.
The players
Daniel M. Best
The president of the Caribbean Development Bank who sets institutional strategy for regional financing.
Caribbean Development Bank
A financial institution that provides capital and development support to borrowing member countries.
American Chamber of Commerce of Trinidad and Tobago
A business organization that facilitates dialogue between policy leaders and the corporate sector.
The details
By integrating environmental, social, and governance (ESG) factors into corporate and national strategy, businesses and governments aim to manage climate-related risks more effectively. This shift often involves directing specific portions of capital toward mitigation, such as the bank's target to allocate 30 percent of total financing and 35 percent of concessional resources toward climate projects. These policies are intended to help countries secure better financing terms to withstand future shocks.
Timeline
2024: Economic growth in borrowing countries reached 1.4 percent.
2025: The bank raised CHF 100 million through its first sustainability bond.
September 15, 2026: Daniel M. Best delivered the keynote address in Port of Spain.
2026: Regional economic growth is projected to reach 1.1 percent.
Money Landscape
The Caribbean Development Bank is realigning its lending focus to address climate change as a core economic risk. This shift follows the institution's 2025 issuance of its first sustainability bond, signaling a move toward specialized financing products.
Regional businesses and households may see shifts in local project funding as institutions prioritize climate-resilient development. Consult with a qualified financial professional to understand how shifting institutional investment strategies could affect regional economic stability.
The takeaway
The Caribbean Development Bank is moving to institutionalize climate resilience as a key metric for economic health. Monitor your own regional financial institution's ESG reporting to understand how these shifting investment priorities might influence regional project availability.
Further reading
For broader trends in regional fiscal planning, visit our Economic Policy section.
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Do you trust that businesses are sufficiently prioritizing long-term resilience over short-term financial gains?
