Barbados Pioneers World's First Debt-for-Climate Swap

Barbados has initiated the first-ever 'debt-for-climate' swap, designed to improve water resilience amidst climate change. This $125 million deal aims to upgrade sewage treatment, bolstering water supplies and reducing pollution. The initiative serves as a climate adaptation model for vulnerable nations.

Barbados has made history by completing the world's inaugural 'debt-for-climate' swap. This innovative approach aims to bolster the island's water systems against climate change's destructive effects.

Under this agreement, $125 million will be leveraged to upgrade sewage treatment plants, improving water availability and reducing pollution levels in the Caribbean. With water scarcity on the rise, this move is critical for both the population and agriculture on the island.

Prime Minister Mia Mottley emphasized the deal's importance, stating it provides a blueprint for rapidly delivering adaptation benefits to vulnerable states facing climate crises.

(With inputs from agencies.)