As the country continues to pursue economic growth while protecting the environment, Guyana has received a US$50 million loan from the Caribbean Development Bank (CDB) – a comprehensive funding package that will strengthen the nation’s response to climate change and natural resource management.
In a statement on Thursday, the CDB said its Board of Directors approved this financing through its Second Environmental Sector Policy-Based Loan (PBL). This funding will advance practical actions for resilience and development that benefit people and nature.
The US$50 million is the second PBL as part of the Bank’s US$175 million two-loan programme for Guyana. Under this programme, a US$125 million disbursement was already made to Guyana in July 2025.
The loan is financed through CDB’s Ordinary Capital Resources and contributes to maintaining fiscal stability as Guyana scales up climate-resilient infrastructure and environmental management systems.
CDB’s Director of Projects, Lennox O’Reilly Lewis, commended the approval of this second tranche, saying, “As Guyana continues to experience rapid economic expansion, this additional financing deepens our support for the country’s efforts to embed environmental sustainability into national policy and planning, ensuring that key reforms in biodiversity management, climate resilience, and water governance are adequately resourced.”
According to the regional bank, reform actions covered under the PBL align with the Government of Guyana’s commitment to equitable climate finance by enhancing community climate resilience and livelihood opportunities.
It noted that these actions have strengthened national institutions to better steward Guyana’s biodiversity, grounding decisions in improved data, modern monitoring systems, and stronger interagency coordination. They have also expanded the restoration of carbon-storing ecosystems, as well as upgraded socially inclusive early-warning mechanisms for public health and climate-resilient water supply systems that serve coastal communities and are built to withstand floods and droughts.
This second PBL supports Guyana’s Low Carbon Development Strategy (LCDS) 2030 and its obligations under international frameworks such as the Paris Agreement and the Convention on Biological Diversity.
Moreover, the loan further reinforces CDB’s focus on climate action as outlined in the bank’s Strategic Plan 2026-2035, which prioritises the protection of natural capital and increased capacity of borrowing member countries to absorb and adapt to climate-related shocks.
It also aligns with CDB’s Country Engagement Strategy for Guyana, particularly its focus on reducing poverty and boosting climate and disaster resilience.
Only earlier this month, it was reported that the CDB had approved some US$226.7 million for climate action initiatives in 2025, marking the strongest annual climate investment performance in the bank’s history. The record-breaking total was approximately 50 per cent of the bank’s total project approvals last year and represented an increase of more than 100 per cent compared to the US$101.5 million committed in 2024.
This surge was driven by the US$125 million environmental policy-based loan disbursed to Guyana, along with similar financing packages totalling US$30 million each to Dominica and Saint Vincent and the Grenadines.
According to the regional bank, the PBLs will support reforms in biodiversity conservation, climate action, and water resource management, among other areas. The financing will also build the technical and financial capacity of the member countries to withstand and recover from climate shocks.
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