Belize Secures US$20 Million in Emergency Climate Funds

Belize has secured a US$20 million line of emergency climate financing from the World Bank after meeting a set of disaster preparedness and climate resilience reforms. The approval of the Catastrophe Deferred Drawdown Option (Cat-DDO) gives the country rapid access to funds following major disasters or health shocks.

Belize committed to a range of national policies with an objective to improve disaster preparedness and climate resilience. These include finalising a National Disaster Risk Management Plan, implementing a National Land Use Policy, adopting a National Building Code, developing a Disaster Risk Financing Strategy, and establishing microinsurance regulations to support vulnerable sectors. “As these reforms have been implemented, Belize now has access to US$20 million in immediate, flexible financing under the Cat-DDO,” the statement said.

“This project gives Belize the tools it needs to respond swiftly to emergencies while staying on course with its long-term development plans,” said Lilia Burunciuc, the World Bank Director for the Caribbean.

Belize is one of the world’s most climate-vulnerable countries, and recent years have seen multiple disasters, including Hurricanes Nana and Lisa and a prolonged drought, and most recently flooding across the country.

“Average annual losses are estimated at US$27 million, and a major disaster could result in damages exceeding US$670 million, nearly a quarter of the country’s GDP,” the statement added.

Belize joins several other Caribbean countries using Cat-DDOs to manage disaster risk, including Barbados, Saint Vincent and the Grenadines, Grenada, Dominica, and Saint Lucia.

The Cat-DDO is valid for three years and can be renewed once. It is financed through the International Development Association.