Barbados is among the world's most water-scarce countries, with water abstraction levels exceeding 100 per cent of sustainable aquifer supply during periods of below-average rainfall. Agriculture, a major water consumer, is heavily affected by climate change, disrupting crop production and threatening food security. In addition, Barbados faces significant environmental degradation caused by inadequate wastewater treatment. In 2018, the ageing South Coast Sewage Treatment Plant experienced breakdowns and blockages, resulting in raw sewage flooding the streets and vital tourism areas, creating massive environmental and health hazards.

This project aims to increase Barbados’ water resilience to climate change. Its focus is on increasing water security, food sovereignty, and improving environmental conditions, particularly those of small-scale farmers and residents. Critical infrastructure, such as the South Coast Water Treatment Plant, will be upgraded to efficiently deliver reclaimed water for agricultural irrigation and aquifer recharge.

The project introduces a novel financing approach through a “Debt-for-Climate Conversion” or debt swap, which will create fiscal space and generate savings over time, allowing Barbados to invest in climate-resilient infrastructure.