Barbados became the first country to reach an agreement to gain access to the Resilience and Sustainability Trust (RSF) of the International Monetary Fund.

The agreement will provide funding to support Barbados’ climate change adaptation and mitigation efforts and will support its ambitious goal of transitioning to an economy powered entirely by renewable energy by 2030. The agreement is expected to catalyze financing from other international financial institutions, as well as from the private sector.

Reforms under the RSF would include integrating climate change into the budget and improving risk management, including for the financial sector; introducing green public financial management; and adopting measures that would incentivize private-sector investment in climate-resilient infrastructure and renewable energy projects. These measures will be closely coordinated with the World Bank and other international partners. 

The RSF is part of a suite of IMF lending instruments designed to assist vulnerable low- and middle-income countries, including those related to climate change and pandemic preparedness.