The Eastern Caribbean Central Bank (ECCB) has signed a memorandum of understanding with Agence Française de Développement (AFD) to integrate climate-related financial risks into the Eastern Caribbean Currency Union’s regulatory systems and the financial sector’s risk management. The work forms part of the Greening the Caribbean Financial System programme, which is financed by the European Union and managed by AFD. The memorandum will drive phase II of the programme, following an 18-month phase I in 2023 and 2024 that delivered a diagnostic study on financial-sector risk exposure and awareness sessions for regulators, financial institutions and other stakeholders. Under a EUR 500,000 technical assistance grant, AFD will support the ECCB, national regulators and financial institutions across the Currency Union to embed climate-related financial risks in credit risk models, due diligence processes, and regulatory and supervisory frameworks, alongside capacity building through peer exchanges and training and measures to ramp up green investment and private-sector-led low-carbon finance.
Eastern Caribbean Central Bank 2025-05-23
Eastern Caribbean Central Bank signs AFD memorandum to launch phase II of Greening the Caribbean Financial System programme with EUR 500,000 support
The Eastern Caribbean Central Bank (ECCB) and Agence Française de Développement (AFD) signed a memorandum to integrate climate-related financial risks into the Eastern Caribbean Currency Union's regulatory systems. Part of the EU-financed Greening the Caribbean Financial System programme, this initiative involves embedding these risks in credit risk models and regulatory frameworks, supported by a EUR 500,000 technical assistance grant. The programme also includes capacity building and measures to enhance green investment and low-carbon finance.