Through this application, the Caribbean Development Bank (CDB) is requesting financial resources from the GCF Project Preparation Facility (PPF) to develop a full funding proposal for the Transforming Finance to Unlock Climate Action in the Caribbean programme (hereafter referred to as “the programme”). The programme aims to unlock the private sector investment needed to transform Caribbean productive sectors and energy systems by catalysing a transformation of finance. The programme will accomplish this by blending GCF and CDB resources to extend concessional lines of credit to Development Finance Institutions (DFIs), who in turn will on-lend to MSMEs and homeowners for climate action investments.2 The programme will simultaneously deliver technical assistance to facilitate programme lending and support the transformation toward climate-informed lending by Caribbean DFIs. In delivering this support, the programme aims to:

• Achieve tangible results during its implementation period, both with regards to (a) increasing lending and investment as well as (b) reducing/avoiding greenhouse gas emissions and enhancing resilience to the incremental risks/challenges associated with climate change; and
• Equip Caribbean financial service providers and local private sector actors with the knowledge and capacity needed to enable the continued flow of financing for climate action investments after programme closure.