NEW YORK — Barbados Prime Minister Mia Mottley is set to propose the creation of a new World Bank facility aimed at providing emergency liquidity to climate-vulnerable countries. The proposal will be part of the third version of the Bridgetown Initiative, which has garnered the support of many developing nations, sources familiar with the plan said.
Speaking at the Council on Foreign Relations, PM Mottley stressed the need for further reforms of international financial institutions to address mounting global challenges such as high debt, climate change, and sluggish growth. “The success that we need is a change of attitude and a resetting of attitudes across the world,” she said.
The Bridgetown Initiative, first unveiled in 2022 and revised in 2023, seeks to make borrowing more affordable for emerging markets and developing countries, many of which are at risk of debt distress. The third version, Bridgetown 3.0, focuses on unlocking finance to help countries adapt to climate change, fortify their economies against natural disasters, and promote long-term growth.
The plan estimates that developing countries will need $1.8 trillion annually to address climate-related needs and another $1.2 trillion per year to tackle poverty and other Sustainable Development Goals (SDGs). It calls for international financial institutions to give developing nations more influence in decision-making and advocates reforms to the G20’s debt treatment framework.
The initiative also urges the World Bank to establish a “universal contingent finance facility” to provide emergency liquidity on low- or zero-interest terms for climate-vulnerable countries following natural disasters. Additionally, it encourages donors to replenish the World Bank’s International Development Association with at least $120 billion this year and seeks to mobilize $500 billion annually in private finance.
Rajiv Shah, president of the Rockefeller Foundation, praised the updated initiative, stating that if fully implemented, it could help raise trillions in new funding for emerging markets and developing countries.