Context and Importance
Small island developing states (SIDS) like those in the OECS face rising climate vulnerability and limited fiscal space. Traditional loans often carry high interest rates and short repayment periods, constraining governments’ ability to invest in resilience and sustainability. Green bonds provide an innovative solution: they offer access to lower-cost capital earmarked for environmental and climate-friendly projects, while attracting investors seeking sustainable finance opportunities.
Globally, the green bond market surpassed USD 1.5 trillion in cumulative issuance by 2024, with growing investor demand for projects aligned with the Paris Agreement and Sustainable Development Goals (SDGs). However, the Caribbean remains underrepresented in this space. By launching the OECS’s first regional green bond, Member States can pool resources, build collective credit strength, and position the region as a leader in blue and green finance among small island economies.
This initiative will enable the OECS to fund critical sustainability projects—ranging from mangrove restoration and eco-tourism infrastructure to sargassum valorization—while reducing borrowing costs and unlocking private-sector participation in climate action.
Champions: Grenada
Co-Champions: Antigua & Barbuda
