Barbados

Barbados’ green-economy planning framework combines long-standing national strategies with updated energy-transition and investment programmes. The National Strategic Plan 2006–2025 established the objective of transforming Barbados into the most environmentally advanced green economy in Latin America and the Caribbean, with specific goals on renewable-resource use, sustainable land and water management, efficient energy systems, and resource-based economic diversification. Building on this foundation, the Barbados National Energy Policy (BNEP) 2019–2030 commits to achieving 100 % renewable energy and carbon neutrality by 2030, setting sectoral objectives for electricity, transport, tourism, agriculture, construction, and trade.

The Barbados Energy Transition and Investment Plan (ETIP) (Government of Barbados / SEforALL, 2023–2025) operationalises these targets through a US $19 billion investment pipeline to 2040, detailing decarbonisation pathways for power generation, transport electrification, building efficiency, and industrial energy use. Complementary frameworks such as Barbados 2035: A Plan for Investment in Prosperity and Resilience and the Second Nationally Determined Contribution (2025) provide the fiscal and implementation architecture linking sectoral investment, climate adaptation, and resilience building. Institutional coordination lies with the Ministry of Energy and Business and the Office of the Prime Minister. While these instruments provide detailed policy and investment roadmaps, Barbados has not yet enacted a single, legally binding “green-economy act” covering all sectors and timelines.

Barbados promotes inclusive governance through its Social Partnership, a tripartite mechanism involving government, labour, and the private sector that has been central to policy dialogue since the 1990s. This forum supports consultation but is not legally embedded as a mandatory requirement for policy development. The Financial Services Commission (FSC) issued updated Corporate Governance Guidelines for credit unions in 2023 and 2025, strengthening provisions on transparency, accountability, and board oversight. The Barbados Stock Exchange provides voluntary governance recommendations for listed firms. However, there is no national strategy mandating employee representation or gender balance on boards, and SDG engagement with the private sector remains voluntary.

Barbados’ participatory governance framework is anchored in its Social Partnership mechanism, a tripartite body comprising representatives of the Government, Employers, and Workers, which provides the principal structure for national policy consultation. The Subcommittee of the Social Partnership serves as the main consultative forum for social and economic policy formulation, complementing broader Annual National Consultation exercises organised by the Government since the 1990s. These consultations are used to review national policy priorities and major planning instruments such as the National Strategic Plan 2006–2025 and the National Sustainable Development Policy; official notices are published through the Government Information Service.

Public participation is also regulated in environmental and land-use planning under the Planning and Development (Environmental Impact Assessment) Regulations, 2021, which establish procedures for screening, public notice, comment, and EIA review. However, consultation exercises are not mandatory across all sectors, and impact assessments for marginalised groups (e.g., women, Indigenous peoples, or persons with disabilities) are not required by law. Engagement remains primarily consultative and policy-specific, relying on established traditions of social dialogue rather than statutory obligations.

Barbados monitors SDG-aligned indicators and publishes sectoral strategies incorporating resilience and social outcomes. Mission-oriented budgeting has been referenced in national budget communications for 2025/26. There is no formally adopted national comprehensive-wealth or wellbeing framework (covering human, social, natural, produced and financial capital) embedded in statutory budget rules or appraisal methods. Work on broader prosperity and resilience indicators appears in investment planning but is not yet institutionalised as a binding beyond-GDP framework.

Barbados has advanced sustainable finance through innovative debt and investment mechanisms. In September 2022, with support from the Green Climate Fund (GCF) and the Inter-American Development Bank, it launched the world’s first debt-for-climate-resilience conversion, restructuring sovereign debt to free up around USD 150 million for climate adaptation investments. In 2023–2024, the Ministry of Finance announced the creation of the Blue Green Bank, supported by the IMF’s Resilience and Sustainability Facility (RSF), the GCF, and other multilateral partners, to finance climate and green projects. The World Bank’s Green and Resilient Recovery Development Policy Credit (2024) is reinforcing fiscal and institutional frameworks to embed climate considerations in budgetary policy. The Central Bank of Barbados continues annual financial stress testing and, in 2025, published Tailoring Climate Transition Risk Assessments, applying climate scenarios to bank portfolios. However, mandatory environmental and social stress-testing across all institutions is not yet in place, and there is no fully binding taxonomy or prudential green-finance framework.

Barbados completed the world’s first debt-for-climate swap in November 2024, following its debt-for-nature swap in 2022 (that generated funds for marine conservation), freeing US$125 million for investments in water reclamation, sewage treatment, food security, and coastal resilience without increasing public debt. Debt-for-development swaps ease debt burdens and create fiscal space for growth. These financial transactions restructure existing debt into new obligations with more favourable terms, such as lower interest rates or extended maturities. Barbados has been a global leader in this area. Both of these 2022 and 2024 transactions included "natural disaster clauses" which allow for a deferral of principal payments in the event of major climate-related events or pandemics.

Building on this, the country is spearheading a Multilateral Debt-for-Resilience Facility, expected to launch at COP30 in November 2025, enabling Caribbean nations to swap costly debt for lower-interest instruments and redirect savings to climate and social projects.

As part of a broader strategy to strengthen Barbados's economic recovery and long-term resilience to climate change, and with the support of the World Bank's Green and Resilient Recovery Development Policy Loan (DPL) from 2023, the government introduced climate budget tagging, green public procurement and climate-sensitive fiscal rules, integrating environmental considerations into the budget process.

A 2024–2025 technical cooperation program is also embedding climate fiscal risk assessments within the Ministry of Finance into planning and policy oversight.

Barbados is integrating sustainability goals into its trade policy, utilizing regional cooperation mechanisms. In December 2024, the country supported a CARICOM proposal for a “Sustainable and Inclusive Trade Agenda.” This agenda advocates for the incorporation of environmental and social chapters into trade agreements, increased transparency in negotiations, and the liberalization of environmental goods and services. Barbados' involvement indicates a commitment to advancing sustainable trade within the Caribbean. The existing CARIFORUM–EU Economic Partnership Agreement (EPA) offers preferential access and includes sustainability provisions, with recent technical assistance aimed at strengthening Barbados’ implementation capacity. However, as of 2025, binding environmental chapters or formal green trade mechanisms, such as interoperable taxonomies, carbon pricing frameworks, or deforestation-free supply chain standards, have not been established within the country's trade agreements. The structural integration of green trade priorities in Barbados' agreements remains limited.

Barbados does not have a carbon tax or emissions trading system. The National Energy Policy 2019–2030 commits to 100% renewable energy and carbon neutrality by 2030, supported by renewable energy incentives and fiscal reforms to adapt energy taxation. In 2023 Barbados joined the OECD Inclusive Forum on Carbon Mitigation Approaches (IFCMA), signalling its participation in international cooperation on carbon accounting. However, there is no binding carbon budget law or domestic carbon-pricing instrument in place.

Since 2021, Barbados has continued to advance its green sector integration across multiple policy domains, but without a dedicated intersectoral planning body. Building on the 2014 Green Economy Scoping Study commissioned with UNEP, the country has since adopted several integrated strategies. Most recent, the Energy Transition and Investment Plan (2025) reinforces cross-sectoral coordination through implementation support and investment targeting net-zero emissions by 2035 (a more ambitious target than the original 2030). Sustainability policies exist across key sectors, implemented through multiple ministries with varying degrees of coordination.

Barbados has integrated circular economy principles into its Blue Economy Strategic Action Plan (2021), which functions as a cross-sectoral framework for areas including tourism, fisheries, energy, and maritime services. The strategy features the promotion of reverse logistics, sustainable certification schemes, and market development for circular products, supported by corresponding investment and regulatory tools for implementation. This plan is part of Barbados’ comprehensive Sustainable Development Policy Framework and is reinforced by the 2024 Investment Plan for Resilience and established energy transition roadmaps. Although the framework is not titled a "Circular Economy Roadmap," it performs equivalent functions. However, long-term Circular Material Use Rate (CMUR) targets, standards for critical materials, and consumer repair rights provisions are currently underdeveloped.

Barbados has implemented initiatives toward public transport electrification. Under the Barbados National Energy Policy (BNEP) 2019–2030, the country has committed to achieving 100% renewable energy and carbon neutrality by 2030. The Electric Bus Pilot Program, launched in 2024, has resulted in widespread electrification of the national fleet, and a Sustainable Electric Mobility Policy is in the finalization phase. Road rehabilitation projects and upgrades to EV infrastructure are being carried out with financial support from regional development banks and international partners. Although the policy framework is established and supported by public investment, comprehensive targets for private vehicles, freight, and rural mobility are still under development, and full alignment with SDG 11 (Sustainable Cities and Communities) is not yet confirmed.

Since 2021, Barbados has strengthened its clean energy policy framework, moving closer to its ambitious goal of achieving 100% renewable electricity by 2030 and net-zero emissions by 2035. The National Energy Policy 2019–2030 remains the backbone of this strategy, now supported by the Energy Transition and Investment Plan (2025), which provides a detailed investment roadmap and financing mechanisms to mobilize over USD 2 billion for renewable energy and efficiency projects. The plan prioritizes solar PV, battery storage, grid modernization, and offshore wind, alongside electrification of transport and sustainable bioenergy deployment.

While still lacking a national strategy, the country has some actions in place to promote green employment. The Energy Transition and Investment Plan (2025), co-created with Sustainable Energy for All (SEforALL), calls for tailored education and employment programs—particularly for women and youth—focusing on skills in solar PV, EVs, energy storage, and hydrogen sectors. This plan reflects a level of active green job creation and capacity building, though a fully comprehensive strategy with structured reskilling and inclusion planning is still missing.

Barbados incorporates just transition and social equity principles into several national programmes, linking climate resilience, housing, and employment. The Energy Transition and Investment Plan (ETIP) sets out sectoral investment pathways with job-creation goals in renewable energy and green industry, and references the need for inclusive development and training. Broader social components are embedded in the Roof to Reefs Programme (R2RP), launched by the Government and the Inter-American Development Bank, which provides concessional financing and technical support for low- and middle-income households to retrofit homes, improve water storage, and increase hurricane and climate resilience. The programme targets local communities and vulnerable groups—women, young people, and low-income workers—through locally led adaptation measures. Barbados also participates in regional initiatives on just transition and green jobs under the ILO and CARICOM frameworks.

The country does not yet have a single, binding national just transition policy or law setting mandatory benefit-sharing mechanisms, reskilling guarantees, or sector-by-sector transition guidance. Just transition measures are instead integrated through resilience and investment plans and implemented via cross-ministerial coordination.

Barbados provides a regulatory framework for small businesses under the Small Business Development Act (1999) and the National Policy Framework for MSMEs. The Green Business Barbados Certificate Programme, implemented with the Ministry of Environment, UNDP, and IDB, offers training and certification for SMEs adopting sustainable practices. New initiatives include the Innovation and Growth Market platform of the Barbados Stock Exchange, supported by the Caribbean Development Bank, and the Third Sector Grant Facility, which funds community-based sustainable development projects. There is no separate legal form for social enterprises, but targeted programs do support MSMEs in adopting green business models.

The Roofs to Reefs Resilience Programme (R2RP), previously a pilot, is now a cornerstone of the country's national development model, with dedicated and stable funding mechanisms. It has expanded its scope and delivery, reinforcing social protection through climate adaptation. In March 2025, the program intensified efforts to secure vital financing to retrofit homes across Barbados, partnering with the Ministries of Housing and Home Affairs and social care agencies to identify vulnerable families and improve infrastructure such as roofs, waterborne sanitation, and habitable structures.

With support from the World Bank, Barbados is developing social protection mechanisms that are triggered in the event of a natural disaster, like the new Disaster Risk Management Development Policy Loan approved in 2025, with a Catastrophe Deferred Drawdown Option (Cat DDO) that provides a fast-access line of credit to support people after an emergency. Cat DDO means that, if a major hurricane or disaster hits, Barbados can quickly draw down these funds to protect people’s livelihoods, rebuild infrastructure, or support vulnerable households.

Barbados’ ocean and land conservation framework is coordinated by the Ministry of Environment and National Beautification, Blue and Green Economy through the Coastal Zone Management Unit (CZMU) and its associated legal instruments. The CZMU manages an expanded Coastal Zone Management Area and implements the Integrated Coastal Zone Management Plan (ICZMP) 2020–2030, approved by Cabinet, together with a Coastal Zone Policy Framework (2020–2030). These instruments provide guidelines, principles, and tools for sustainable coastal development, water-resource protection, and resilient maritime activities, supporting implementation of SDG 14. National implementation and enforcement procedures are being updated through the development of formal operational guidance for planning authorities.

On land, the Physical Development Plan (2021) establishes national conservation priorities through the designation and management of National Parks, Marine Reserves, and Natural Heritage Conservation Areas. The National Biodiversity Strategy and Action Plan (NBSAP 2020) outlines 13 priority targets for biodiversity protection by 2035, addressing terrestrial and marine ecosystems, pollution control, and invasive-species management. The NBSAP is currently being revised to align with the Kunming–Montreal Global Biodiversity Framework (GBF) for the 2025–2030 period, with the process coordinated by the Ministry of Environment and supported by stakeholder consultation and blue-finance mechanisms.

Barbados has taken initial steps to integrate natural capital into planning. In its revised NDC, the government committed to incorporating natural capital categories into national asset accounting. The Coastal Zone Management Unit (CZMU) manages the Marine Spatial Plan 2020–2030, mapping and valuing marine ecosystem services. The government has participated in high-level dialogues on natural capital with the IDB and The Nature Conservancy. The Barbados Environmental Sustainability Fund (BESF), capitalised partly through debt-for-nature swaps, finances conservation activities. However, there is no statutory independent advisory body with a mandate on natural capital and no comprehensive SEEA-based national accounts.

Barbados adopted the Strategic Plan for a New Modern National Agricultural Health and Food Control System (NAHFCS) in 2010. This plan addresses food safety, healthy diets, environmental protection, and Good Agricultural Practices (GAP). The plan aligns with international norms (Codex, IPPC, OIE) and outlines regulatory and institutional reform. However, its adoption date precedes the SDG framework, and it lacks updated long-term targets that align with SDG 2 (Zero Hunger) and SDG 12 (Sustainable Consumption). Available national strategy documents post-2020 do not contain evidence of subsidy reform, public procurement alignment, or formal promotion of regenerative agriculture. While the foundational policy exists, its capacity to integrate into broader climate or food systems transitions may be constrained by its age and lack of updated integration.

Barbados completed a debt-for-climate resilience operation (Dec 2024) with IFI guarantees, generating approximately US$125 million in fiscal savings to fund water and sewerage resilience and pollution reduction. The Central Bank of Barbados documents the swap and sustainability-linked financing modalities. Barbados had earlier executed Blue Bonds for Ocean Conservation (2022), establishing dedicated funding for marine conservation and a national conservation trust window. In 2025 the country became the test case for a regional debt-swap facility to standardise future resilience swaps across the Caribbean. These instruments channel public finance to nature and resilience while broader subsidy reform is under discussion.

Green investment is embedded in Barbados’ medium-term development through ETIP, BNEP 2019–2030, the Barbados 2035 Investment Plan, and sovereign financing operations that create fiscal space for climate-resilient infrastructure (e.g., water and pollution control). The Second NDC (2025) sets a 2035 investment plan for mitigation and adaptation measures across energy, transport, waste and AFOLU. These measures are integrated into development and fiscal planning rather than a discrete, conditional short-term stimulus package, and are implemented through sectoral programmes and public–private investment frameworks.