Landmark Partnership Unveiled to Drive Green Economies and Resilience in the Eastern Caribbean
Basseterre, Saint Christopher (St. Kitts) and Nevis – October 20, 2025 – In a significant move to bolster economic resilience and accelerate sustainable development, CAF – Development Bank of Latin America and the Caribbean, and the Eastern Caribbean Central Bank (ECCB) have officially joined forces. The two institutions signed a Memorandum of Understanding (MOU) on the sidelines of the 2025 Annual Meetings of the World Bank Group and the International Monetary Fund in Washington, D.C., establishing a framework to mobilize crucial climate and development finance for the Eastern Caribbean Currency Union (ECCU).
This pioneering partnership aims to unlock new pathways for the eight-nation ECCU to transition towards greener, more resilient, and digitally connected economies. The agreement was signed by Sergio Díaz-Granados, Executive President of CAF, and Timothy N. J. Antoine, Governor of the ECCB, signaling a strengthened commitment to addressing the unique challenges faced by small island developing states in the Caribbean.
Strengthening Financial Systems and Access to Capital
The core objective of this collaboration is to fortify the region’s financial systems and expand access to affordable capital. Small island economies within the ECCU often grapple with limited access to finance, exacerbated by climate vulnerability and the pressures of the global financial landscape. CAF’s role will be instrumental in channeling financing, innovation, and expertise to overcome these hurdles. This initiative builds on CAF’s deepening engagement in the Caribbean, where it has been actively expanding its support through its Caribbean Regional Management Office and by welcoming several shareholder countries. The partnership is designed to provide ECCU countries with greater financing options and amplify the impact of development financing efforts.
Accelerating Green Transitions and Climate Resilience
The Eastern Caribbean is acutely vulnerable to the escalating impacts of climate change and natural disasters. The ECCB has been at the forefront of advocating for climate action and has implemented various initiatives to promote green finance and integrate climate-related financial risks into regulatory systems. This new alliance with CAF is poised to significantly accelerate the region’s transition towards a sustainable future. By prioritizing areas such as renewable energy and energy security, the partnership seeks to reduce the ECCU’s heavy reliance on imported fossil fuels, which currently account for approximately 90% of electricity generation and contribute to some of the highest electricity prices globally.
Key Areas of Cooperation for Sustainable Growth
Beyond energy, the strategic framework of this partnership will focus on several critical areas vital for the ECCU’s development and competitiveness. These include fostering digital transformation, which is essential for modernizing economies and enhancing public services, and boosting private sector competitiveness. By supporting institutional capacity building, the collaboration aims to equip local entities with the necessary tools and knowledge to navigate the complexities of sustainable development and climate adaptation. This comprehensive approach is expected to create new opportunities for transformation and foster inclusive growth across the region, aligning with the ECCB’s “Big Push” challenge to significantly expand the ECCU economy over the next decade.
A Collaborative Approach to Regional Challenges
Governor Antoine highlighted the timely nature of the partnership, stating, “This collaboration is about turning our ‘Big Push’ challenge into meaningful and impactful action. It is about expanding the tools, partnerships, and resources that can help us empower and support our people to thrive in an ever-changing global economy”. CAF’s Executive President, Sergio Díaz-Granados, echoed this sentiment, emphasizing the bank’s commitment to strengthening the region’s financial system and working with key partners to amplify development financing. “The Eastern Caribbean faces some of the most complex development challenges in the world,” stated Díaz-Granados. “These range from climate vulnerability to the pressures of global finance, which limit access to affordable capital and constrain fiscal space in small island economies. This collaboration with the ECCB will help channel financing, innovation, and expertise to address those challenges while creating opportunities for transformation and inclusive growth”. This alliance underscores a shared vision among development institutions and regional central banks for a more robust, sustainable, and prosperous Caribbean future. The initiative is expected to generate significant positive news for businesses and economies throughout the region, offering a tangible path toward overcoming existing vulnerabilities and unlocking new potential for growth.