GEF, CAF and Instiglio launch an innovative mechanism to scale climate adaptation solutions in the Caribbean. GEF, CAF and Instiglio launch a new mechanism to scale climate adaptation solutions in The Bahamas, the Dominican Republic and across the Caribbean. July 17, 2026 The Global Environment Facility (GEF), CAF - Development Bank of Latin America and the Caribbean - and Instiglio have launched an innovative financing mechanism to accelerate the adoption of climate adaptation solutions across the Caribbean. The initiative will begin in The Bahamas and the Dominican Republic and aims to mobilize public and private investment to strengthen the resilience of Small Island Developing States (SIDS). The impacts of climate change are intensifying across the Caribbean, posing growing challenges for Small Island Developing States (SIDS). Rising sea levels, more intense hurricanes, prolonged droughts and coastal degradation are affecting infrastructure, public services, ecosystems and livelihoods, while many adaptation solutions have yet to reach the scale required to address these challenges. To help close this gap, the Global Environment Facility (GEF), CAF - Development Bank of Latin America and the Caribbean - and Instiglio have launched the Pull Financing Mechanism for Climate Change Adaptation in the Caribbean, an initiative designed to accelerate the adoption of innovative climate adaptation solutions while mobilizing public and private investment to strengthen climate resilience. The project was selected under the GEF Challenge Program for Adaptation Innovation, funded by the Special Climate Change Fund (SCCF), and announced during COP29 in Azerbaijan. CAF will serve as the GEF implementing agency, while Instiglio will act as the executing entity. The initiative will leverage approximately USD 7.4 million in co-financing and will initially be implemented in The Bahamas and the Dominican Republic, working closely with financial service providers as well as public and private sector stakeholders. Transforming markets to accelerate climate adaptation. Unlike traditional approaches focused on stand-alone projects, the mechanism seeks to transform markets so that climate adaptation solutions can be deployed at scale and sustainably reach the communities and sectors that are most vulnerable to climate change. To achieve this, the initiative will work with governments, climate funds, donors, private sector actors and technical partners to identify priority adaptation challenges, understand the barriers preventing solutions from scaling, and co-design financially viable mechanisms that can accelerate their adoption. The mechanism will focus on sectors where climate risks are most urgent, including resilient water management, climate-smart agriculture, coastal protection, disaster preparedness and response, and energy resilience. "Results-based financing models offer significant potential to unlock the innovative capacity of project partners while catalyzing additional public and private investment in climate adaptation and resilience for vulnerable populations," said Jason Spensley, Senior Climate Change Specialist at the GEF. Alicia Montalvo, Manager of Climate Action and Positive Biodiversity at CAF, highlighted that the key challenge is to move beyond financing isolated projects and toward transforming markets capable of delivering adaptation solutions at scale. "Through this Pull Financing Mechanism, CAF brings its role as a multilateral development bank to connect innovation and investment, helping create credible demand, mobilize partners and align capital around high-impact climate adaptation solutions. Our goal is to ensure that resilience is not only achievable, but also sustainable and replicable across the region," she said. The Bahamas and the Dominican Republic: the first implementation countries. The mechanism will initially be implemented in The Bahamas and the Dominican Republic, two countries that are highly exposed to hurricanes, floods, droughts, sea level rise and coastal erosion, and whose climate challenges reflect those faced by many Caribbean SIDS. In The Bahamas, the initiative will support solutions to strengthen water security, improve energy resilience and expand access to reliable services across a geographically dispersed island nation. In the Dominican Republic, the project will promote technologies and services that enhance water management, advance climate-smart agriculture, strengthen energy resilience and reduce the vulnerability of coastal areas. The lessons generated in both countries are expected to inform the expansion of similar market-based approaches across other Caribbean island states and vulnerable island contexts worldwide. Building markets for climate adaptation. Beyond implementing the mechanism, the initiative aims to bring together additional partners to expand its impact. Climate funds - including potential partners such as the Adaptation Fund - as well as donors, governments, private sector organizations and technical partners are invited to collaborate in designing, financing and scaling market-based solutions that strengthen resilience and deliver lasting benefits to vulnerable communities and critical systems across the Caribbean.

Instiglio is officially launching the Government Empowerment Network (GEN) this July.