Sustainable Finance: Powering a More Resilient Future for the Caribbean and Beyond

Sustainable finance heralds a new and promising era of innovation. It’s an age where climate risks are being transformed into opportunities, new technologies are accelerating progress, and major stakeholders are increasingly focused on fostering long-term prosperity across regions. In short, sustainable finance is radically reframing what comprehensive socio-economic resilience can look like.

The narrative is proven by the numbers. In just two years, the global sustainable finance market surged to USD 8.2 trillion in 2024, a 17% increase from the previous year. Sustainability-linked bonds also climbed to a record USD 1.052 trillion, proving that forward-looking investment is no longer niche but rather it’s the new mainstream.

Turning Climate Risk into Action: Lessons from Jamaica
When Hurricane Melissa devasted Jamaica in October 2025, the country didn’t have to wait months for international aid. Instead, two innovative disaster-response tools were triggered automatically:
• A USD 150 million World Bank catastrophe bond, and
• A USD 70.8 million pay-out from the Caribbean Catastrophe Risk Insurance Facility (CCRIF)

Both mechanisms rely on parametric models, which release funds instantly once a storm reaches certain thresholds. While these funds alone would not cover the full cost of recovery, it did provide something equally important: speed, stability, and a springboard for an immediate response. Jamaica’s layered financing approach is a strong example of how countries can leverage innovation to better prepare for climate change.

Climate Vulnerability and Environmental Dependence: A Call for Urgent Action

The Caribbean and West Africa remain among the world’s most climate-vulnerable regions, despite contributing only a fraction of global emissions. The Caribbean, for example, is responsible for just 0.4% of global CO2 output, yet Small Island Developing States continue to face disaster losses of 1-8% of GDP annually, alongside rising adaptation costs. In West Africa, countries like Ghana confront similar challenges, with increasing temperatures projected to expose nearly 19% of the population to annual heatwaves by 2080 and heat-related mortality expected to rise significantly without urgent climate-resilient investment.

This vulnerability is heightened by the regions’ deep reliance on their natural environments for economic and social well-being. In the Caribbean, the ocean is not only a source of identity but a critical economic pillar. The global ocean economy is valued at over USD 24 trillion, and for the Caribbean, ocean-related industries already account for nearly 20% of GDP and support more than 70,000 jobs. Healthy marine ecosystems also offer vital protection by buffering coastlines, supporting livelihoods, and helping countries manage the impacts of rising seas and extreme weather.

Together, these realities underscore a simple but urgent truth; vulnerable regions cannot afford to wait. Strengthening climate resilience and investing in sustainable, nature-positive development is no longer optional, it is essential. It requires coordinated action from organisations, financial institutions, and policymakers alike, working to safeguard the very environments on which these communities depend.

Republic Financial Holdings Limited’s (RFHL’s) Strategy to Create Sustainable Change

At RFHL, sustainable finance is not a supplementary initiative. It is a fundamental pillar of how we support long-term stability, competitiveness, and climate resilience across the regions we serve. Our USD 200 million climate finance portfolio reflects this commitment, with several initiatives designed to strengthen the Blue Economy. These include investments in sustainable fisheries, resilient marine infrastructure, costal protection, and tourism assets that safeguard livelihoods while protecting the ecosystems on which they depend.

Beyond financing, we continue to embed climate risk management, environmental stewardship, and sustainability-driven decision-making into every aspect of our operations. Through the Centre for Business Innovation and our Sustainability Unit, we equip clients and partners with the tools needed to transition successfully, offering:
• Tailored climate-focused financial products
• Capacity-building programmes and technical training
• Advisory services to help businesses innovate, adapt, and strengthen their resilience

As part of this approach, RFHL continues to collaborate with leading global and regional partners to expand access to climate solutions and align with international best practices.

Through this integrated strategy, we remain committed to helping build stronger economies, protecting environmental assets, and ensuring that individuals and businesses across the Caribbean and West Africa are better positioned to thrive in a rapidly changing world.

Looking Ahead

Sustainable finance gives us a clear path forward, where resilience, innovation, and inclusive growth work hand in hand. At RFHL, we remain committed to mobilising capital, strengthening partnerships, and supporting local businesses as they adapt and thrive in a rapidly changing world.

The future of our region depends on the choices we make today.

We at RFHL choose sustainability, resilience and shared prosperity.

To learn more, read our 2025 Republic Financial Holdings Ltd Sustainability Report.