News Americas, GEORGETOWN, Guyana, Mon. July 28, 2025: In a bold step toward climate-aligned growth, the Caribbean Community, CARICOM, and the International Finance Corporation, (IFC) have partnered to launch a regional green finance taxonomy – a move that could unlock billions in private capital for sustainable infrastructure, clean energy, and resilience projects across the Caribbean.
The framework, introduced on June 18, 2025, defines what qualifies as a “green asset” in the English-speaking Caribbean. It aims to standardize how banks, investors, and governments assess climate-related financing – a necessary step as the region works to close a projected $55 billion climate finance gap by 2030.
The taxonomy will:
- Help scale green lending and investment pipelines.
- Support ESG-aligned projects in renewable energy, water, transport, and agriculture.
- Boost the region’s access to climate funds and sovereign green bond markets.
“It’s about translating ambition into bankable action,” said an IFC regional spokesperson. “This framework will help the Caribbean speak the same green finance language as global markets.”
Small Island Developing States, (SIDS) in the Caribbean remain among the most vulnerable to climate shocks – yet are among the least responsible for global emissions. This taxonomy gives them a path to attract global climate capital on clear and credible terms.
So, could this be the key that unlocks the region’s climate investment potential?
If adopted across CARICOM member states, the answer may be yes – especially as global investors sharpen their focus on sustainability, transparency, and high-impact emerging markets.
