Saint Lucia’s NDC Financing Strategy
Saint Lucia’s Nationally Determined Contribution (NDC) targets are conditional on external financing and technical assistance. The Government of Saint Lucia estimates that NDC mitigation actions will cost approximately US$368 million, and the private sector is expected to contribute 90% of the required investment. Although international public finance and official development assistance (ODA) can offer some relief to Saint Lucia’s growing debt-to-GPD ratio, it is an unsustainable long-term approach.
GGGI worked with the Government of Saint Lucia to develop this NDC Financing Strategy, which outlines short- and medium-term actions for mobilizing public and private finance required to achieve Saint Lucia’s mitigation targets by 2030. Specifically, the NDC Financing Strategy focuses on mobilizing finance for prioritized NDC implementation actions related to energy efficiency, renewable energy, sustainable transportation and energy storage in four main areas: 1) creating an enabling environment for mitigation projects, 2) scaling up access to international public climate finance, 3) increasing private sector participation and investment in climate change mitigation projects, and 4) greening the financial sector. The report includes potential approaches and next steps for exploring innovative financing mechanisms such as national financing vehicles, debt-for-climate swaps, green bonds, and public-private partnerships in order to catalyze investment from domestic, international, and private sector sources to meet the country’s NDC goals.
This strategy was developed by the Global Green Growth Institute as part of Climate Action Enhancement Package (CAEP) program, supported by the NDC Partnership and the donors listed in the document.