1. Executive Summary

"Barbados 2035: A Plan for Investment in Prosperity & Resilience," a comprehensive strategy formulated by the Bridgetown Initiative Unit within the Prime Minister's Office, lays out Barbados' ambitious vision for achieving a sustainable, prosperous, inclusive, and resilient society by the year 2035. This plan identifies a significant US$11.6 billion investment opportunity across various sectors, strategically aimed at mitigating the nation's vulnerabilities, particularly those related to the climate crisis, while simultaneously fostering economic growth and enhancing the quality of life for all Barbadians.7 A key element of this vision involves a transformative shift in national identity, from that of a small island state to a "large-ocean state," capitalizing on Barbados' strategic geographic location and extensive marine resources.7 The document serves as a guiding framework, intended to align the resources of domestic project developers, foreign private investors, and international development partners with Barbados' national priorities.7

Since its publication in June 2024, the "Barbados 2035" plan has witnessed notable advancements. The nation has maintained a positive macroeconomic trajectory, marked by robust GDP growth, a declining debt-to-GDP ratio, moderated inflation, and healthy international reserves.1 Key initiatives aligned with the plan's objectives have been launched, including the Barbados Energy Transition and Investment Plan (ETIP), which outlines a path towards achieving net-zero emissions by 2035.3 Furthermore, Barbados has successfully executed a groundbreaking debt-for-climate swap, generating substantial fiscal savings to be reinvested in climate resilience projects.5 While these achievements indicate positive momentum, the comprehensive nature of the "Barbados 2035" plan necessitates a detailed examination of progress across its twelve key investment priorities to provide a thorough assessment of its implementation status. This report aims to provide such an analysis, highlighting achievements, identifying challenges, and offering insights into the factors influencing the plan's progression towards its ambitious 2035 vision.

2. Introduction: The Vision of Barbados 2035

The central aspiration of "Barbados 2035: A Plan for Investment in Prosperity & Resilience" is to transform Barbados into a model of sustainability, prosperity, inclusivity, and resilience by the year 2035.7 This overarching vision is underpinned by six core missions, each targeting specific outcomes crucial for the nation's future. These missions include the ambition to become a clean and beautiful large ocean-state, championing sustainable development both locally and globally, with a long-term goal of 100% sustainability in all domestic activities by 2035.7 The vision also emphasizes empowering all Barbadians, ensuring equitable access to essential basic services such as water, roads, housing, education, and healthcare, and prioritizing the wellness and happiness of the population, aiming for significant reductions in non-communicable diseases and crime.7 Furthermore, the plan seeks to create opportunities for ownership and wealth creation, enabling Barbadians to improve their livelihoods and reduce poverty, and to establish a high-functioning, resilient society with comprehensive digital inclusion.7

A defining aspect of this vision is the strategic evolution of Barbados from a "small island state" to a "large-ocean state".7 This involves leveraging its world-class deep-water port and its strategic location at the crossroads of major trade routes connecting Africa and Central-and-South America to become a major logistics and transshipment hub, thereby bolstering regional resilience.7 The plan explicitly positions itself as a roadmap intended to guide both public and private investors in directing their resources towards sectors and projects that best serve the interests of Barbadians.7 It aims to provide an economy-wide, medium-to-long-term framework for a prosperous and resilient Barbados, specifying national priorities by area and project, along with the type and amount of capital required for their financing.7

3. Macroeconomic Performance and Enabling Environment

3.1 Key Economic Indicators

Barbados has demonstrated robust economic performance in 2024, with real GDP growth estimated at 4 percent year-on-year.1 This growth has been primarily driven by the strong rebound in tourism, coupled with significant activity in business services and construction.1 This positive economic momentum provides a crucial foundation for attracting investment and facilitating the implementation of the ambitious "Barbados 2035" plan, as it generates government revenue and enhances investor confidence.1

Significant progress has also been made in reducing the national debt-to-GDP ratio, which declined to around 100 percent by the end of 2024.1 The government has reaffirmed its commitment to further reduce this ratio to 60 percent by fiscal year 2035/36.1 This fiscal consolidation enhances the nation's long-term financial sustainability and creates greater fiscal space for public investments in the priority areas outlined in the "Barbados 2035" plan.1

Inflationary pressures have continued to moderate, with the average inflation rate in 2024 reported at 1.4 percent.1 This easing of prices, reflecting a moderation in global commodity prices and domestic goods and services, helps to maintain the purchasing power of both citizens and businesses, contributing to overall economic stability.1

Barbados' external financial position remains strong, with international reserves reaching US$1.6 billion, equivalent to over seven months of imports.1 These healthy reserves provide a crucial buffer against potential external economic shocks and underpin the stability of the Barbados dollar peg.1 Looking ahead, the Central Bank of Barbados anticipates sustained economic growth, forecasting a real GDP expansion rate of 3 percent on average in the short to medium term, with a specific forecast of 3.0% for 2025.14 This positive outlook suggests continued economic momentum that can further support the "Barbados 2035" agenda by providing a predictable stream of resources for both public and private sector investments aligned with the plan.14

3.2 Enabling Policies and Reforms

The government continues to implement its home-grown Barbados Economic Recovery and Transformation (BERT 2022) program, which remains a cornerstone for achieving macroeconomic stability and facilitating broader economic reforms.1 The successful implementation of targets under the IMF's Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) underscores the government's commitment to this program.1 These efforts provide a stable and predictable economic environment that is conducive to the long-term objectives of "Barbados 2035."

Significant progress has been made in various structural reforms aimed at enhancing the efficiency and effectiveness of government operations and attracting investment. These include strengthening customs administration, improving the framework for public-private partnerships, and enhancing liquidity forecasting at the Central Bank of Barbados.1 These reforms are designed to reduce bureaucratic hurdles, improve governance, and create a more attractive investment climate.

The government's unwavering commitment to reducing the public debt to 60 percent of GDP by fiscal year 2035/36 demonstrates a long-term vision for fiscal sustainability.1 Achieving this target will solidify Barbados' financial health in the long run, enabling the government to allocate more resources towards the development initiatives outlined in the "Barbados 2035" plan rather than focusing on debt servicing.1

4. Progress in Key Investment Priority Areas

4.1 A Vibrant Economy & Thriving Communities (US$3.295 billion)

4.1.1 Becoming a global test-bed for ocean health and climate resilience (blue economy)

Barbados has taken significant strides in its ambition to become a leader in ocean health and climate resilience, particularly through its focus on the blue economy. The launch of the Blue Bonds project represents a tangible commitment to protecting the nation's marine ecosystems, aiming to conserve up to 30% of these vital areas.17 This initiative not only contributes to the "large-ocean state" vision but also strategically leverages marine resources for sustainable development.17 The existence of the Barbados Blue Economy Initial Action Plan provides a crucial framework for guiding the development of this sector, ensuring a coordinated and strategic approach to maximizing the sustainable utilization of ocean resources.18 Furthermore, the ongoing support from the United Nations Development Programme (UNDP) highlights the importance of international partnerships in advancing Barbados' blue economy goals, bringing valuable expertise and resources to these initiatives.18

4.1.2 A community-centric sustainable tourism destination

Barbados' efforts to position itself as a sustainable tourism destination have gained international recognition, as evidenced by its inclusion in National Geographic's "Best of the World 2025" list.21 This accolade underscores the island's commitment to environmental protection measures and its success in maintaining its authentic cultural character while embracing modern tourism practices.21 The Caribbean Tourism Organization's (CTO) 2025 theme, "Caribbean Resilience: Crafting Tomorrow's Tourism," aligns well with Barbados' sustainable tourism objectives, fostering a regional focus on resilience and long-term sustainability in the tourism sector.23 Moreover, ongoing investments in the hospitality sector, including the construction of several major hotels, signal strong confidence in the future growth and sustainability of Barbados' tourism industry.14

4.1.3 A place with equitable access to resilient housing

Addressing the critical need for climate-resilient housing, the Roofs to Reefs Programme is actively working to secure funding for vulnerable communities to retrofit homes and enhance overall resilience.24 This program highlights the nation's commitment to ensuring that no community is left behind in building a climate-resilient future.24 The groundbreaking debt-for-climate swap also plays a crucial role in this priority area by financing water infrastructure projects that are essential for housing resilience, ensuring access to a reliable water supply even in the face of climate change impacts like droughts.5 Additionally, the Home Ownership Providing Energy Inc. Project (HOPE) directly tackles the issue of housing affordability, particularly for first-time buyers, contributing to the goal of equitable access to housing.26

4.1.4 A producer of nutritious food

Barbados is actively promoting climate-smart agriculture through various initiatives and partnerships. Collaboration with organizations like Fork Farms on the Caribbean Climate-Smart Agriculture Project is empowering local communities to grow fresh, nutritious food using innovative hydroponic Flex Farms.27 The Food and Agriculture Organization (FAO) is also partnering with Barbados on initiatives like the Accelerating Transition To Climate-Resilient Agrifood Systems (BATCRAS) project.28 Furthermore, the development and implementation of an AI Agronomic Advisor marks a significant step in leveraging technology to enhance sustainability and productivity in the agricultural sector.30 These efforts collectively aim to bolster food security and build resilience to climate change within the agricultural sector.27

4.1.5 A safe home for empowered communities

Barbados is strengthening its social protection systems through ongoing reforms and capacity-building initiatives.31 These efforts aim to create a more comprehensive and inclusive social safety net that can effectively respond to the needs of vulnerable persons and groups.31 Targeted programs focusing on women and youth, such as the Joint Programme, "Putting Youth and Women at the Center of Climate Resilience and Safety in Barbados," are empowering these key groups and enhancing safety within communities.32 Moreover, the development of national climate-resilient water safety and food safety plans signifies a commitment to ensuring basic safety standards for all citizens, contributing to the overall well-being and empowerment of communities.33

4.2 Robust Natural and Physical Infrastructure (US$4.660 billion)

4.2.1 A healthy, functional and rehabilitated ecosystem

Barbados is demonstrating a strong commitment to protecting and rehabilitating its ecosystems. The Blue Bonds project, beyond its financial innovation, is a direct investment in ocean conservation, aiming to safeguard up to 30% of the nation's marine environment.17 The National Biodiversity Strategy and Action Plan provides a comprehensive framework for guiding the country's efforts in conserving its rich biodiversity and ensuring its sustainable use.34 Furthermore, the ongoing partnership with the United Nations Environment Programme (UNEP) supports Barbados in strengthening its environmental management and governance systems for both marine and terrestrial ecosystems, highlighting the importance of international collaboration in achieving environmental sustainability.35

4.2.2 An island supported by resilient infrastructure (roads, port, airport)

Investments in resilient infrastructure are crucial for Barbados' long-term sustainability and economic stability. The Mill and Pave Program is actively working to enhance the nation's road network by resurfacing a significant portion of its roadways, improving durability and the experience for motorists.26 The Barbados Coastal Resiliency Project is addressing the growing threat of coastal erosion and climate change impacts by building essential infrastructure such as breakwaters and drainage works.26 Additionally, the Shallow Draught Marina project is a key component of the Barbados Port Inc. Masterplan 2020-2030 and Port Expansion, aiming to develop Barbados into a major logistics and transshipment hub, supporting regional resilience.26

4.2.3 A fully renewable and energy-independent island

Barbados has set an ambitious goal of achieving 100% renewable power generation by 2035, and the Barbados Energy Transition and Investment Plan (ETIP) serves as a detailed roadmap to achieve net-zero emissions by this date.3 Recognizing the challenges associated with integrating renewable energy into the grid, the government is actively working to address grid storage challenges through strategic planning and procurement initiatives.36 The passage of the Electricity Supply Act represents a significant regulatory reform aimed at fostering a sustainable and competitive market for renewable energy, encouraging local investor participation and enhancing regulatory oversight.12

4.2.4 The Caribbean's gold standard for safe and secure water

Ensuring a safe and secure water supply is a paramount priority for Barbados. The Climate Resilient South Coast Water Reclamation Project, financed by the Inter-American Development Bank (IDB), is a cornerstone initiative aimed at expanding the reuse of reclaimed wastewater, significantly increasing water availability and enhancing resilience to climate change impacts.29 The European Investment Bank (EIB) is also providing crucial support for improving the island's water supply and sanitation infrastructure, focusing on modernizing the distribution network and wastewater treatment equipment.39 Furthermore, the innovative debt-for-climate swap has allocated significant funds towards water infrastructure projects, including upgrading the South Coast sewage treatment plant, demonstrating a commitment to finding creative financing solutions for this critical sector.5

4.3 Fit-for-Purpose Institutions (US$1.102 billion)

4.3.1 A leader in Caribbean healthcare

Barbados aims to be a leader in healthcare within the Caribbean region. Upgrades to the Queen Elizabeth Hospital, the primary public healthcare facility, are underway to strengthen its capacity and improve the quality of care provided to the population.40 Efforts are also being made to strengthen the regulatory system for medicines and health technologies, ensuring access to safe and effective medical products and increasing local production capacity.42 Recognizing the increasing challenges posed by climate change and other potential shocks, Barbados is actively engaged in initiatives aimed at building resilient health systems that can effectively respond to present needs and future stresses.43

4.3.2 A country in which every student thrives

The government is undertaking comprehensive education reform efforts with the goal of modernizing the education system and improving learning outcomes for all students.44 This reform includes a focus on incorporating new learning models and better integrating arts and music into the curriculum to cater to diverse learning styles and foster creativity.45 A pilot project to digitize textbooks is also being launched, aiming to leverage technology to enhance the learning experience and improve access to educational materials.45

4.3.3 A digital nation powered by data and technology

Barbados is committed to becoming a digital nation, and the Smart Barbados Initiative along with the Digital Government Strategy provide a comprehensive roadmap for this transformation.49 Significant progress is being made in expanding e-government services, making public services more efficient and accessible through online platforms.49 Investments in digital infrastructure are also underway to ensure nationwide digital connectivity.49 To further encourage digital transformation, the government has introduced a digital transformation tax credit initiative, incentivizing businesses to adopt innovative digital solutions.51

5. Financing the Barbados 2035 Plan

The successful realization of the "Barbados 2035" plan hinges on securing the estimated US$11.6 billion in funding required by 2035.7 A significant portion of this, approximately US$6.6 billion, is anticipated to come from private investors, underscoring the critical role of the private sector in achieving the plan's objectives.7 This necessitates the creation and maintenance of a conducive investment climate that attracts both domestic and foreign capital towards the identified opportunities in sectors like the blue economy, sustainable tourism, resilient housing, renewable energy, and digital technology.52

Public funding requirements are estimated at US$5 billion over the next decade.7 The government intends to finance part of this through projected GDP growth directly linked to the Investment Plan.7 However, an estimated US$3.6 billion gap in public financing remains, highlighting the crucial need for support from international development partners, particularly through blended finance solutions that can leverage public funds to attract private investment at scale.7

Encouragingly, Barbados has made progress in mobilizing climate financing, supported by collaborations with international development partners.10 The launch of the Barbados Energy Transition and Investment Plan (ETIP) serves as a specific roadmap for attracting investments in the renewable energy sector, providing clarity for potential investors regarding the opportunities and financial requirements for achieving the nation's ambitious renewable energy targets.3 The plan itself outlines numerous concrete investment opportunities across various sectors, aiming to provide a clear pipeline for both domestic and foreign private investors.52

6. Operationalizing the Plan: Governance and Delivery Mechanisms

Recognizing that securing finance is only one aspect of successful plan implementation, "Barbados 2035" outlines key elements for effective delivery. A central component of the governance structure is the establishment of a Strategic Council and Public-Private Delivery Taskforce at the ministerial and executive level.53 This council and taskforce are responsible for overseeing the operations related to the investment plan, forging strategic partnerships necessary for its execution, addressing any bottlenecks that may arise, and ultimately driving the implementation of the plan effectively and efficiently.53

The plan also calls for the creation of a Joint Economic Group, which will play a vital role in prioritizing projects within the Investment Plan and setting the overall strategic direction for its implementation.53 This ensures that resources are directed towards initiatives with the highest potential impact on Barbados' prosperity and resilience, aligning with the overarching goals of the plan.53

Furthermore, "Barbados 2035" emphasizes the importance of upfront budgeting for implementation capacity, suggesting an allocation of 5-10% of project costs for this purpose.7 This recognition of the need for dedicated resources for effective implementation underscores the government's commitment to ensuring that the plan is not just a document but a set of actionable priorities with the necessary support for their execution. The plan also prioritizes "catalytic initiatives" for the first 3-5 years, focusing on projects that are considered low-hanging fruits and can deliver tangible results quickly, as well as interventions that are on the critical path for other projects.7

7. The Bridgetown Initiative and its Influence

The "Barbados 2035" plan is intrinsically linked to the broader Bridgetown Initiative, championed by Prime Minister Mia Amor Mottley. This initiative advocates for a fundamental reform of the international financial system to better support climate-vulnerable nations like Barbados.13 The core objectives of the Bridgetown Initiative include unlocking long-term, affordable finance for developing economies, using development finance more strategically to catalyze private investment at scale, and fundamentally rethinking how debt is viewed and treated, particularly when incurred for climate resilience purposes.13

The Bridgetown Initiative has gained significant international traction and has contributed to several key developments in the global financial landscape. These include the establishment of the Loss and Damage Fund at COP28, aimed at providing financial assistance to countries most vulnerable to the adverse effects of climate change.54 Additionally, the International Monetary Fund (IMF) created the Resilience and Sustainability Trust (RST), a new facility to provide affordable long-term financing to help low-income and vulnerable middle-income countries build resilience to external shocks, including climate change and pandemics.54 The Bridgetown Initiative has continued to evolve, with the release of "Bridgetown 3.0," which outlines further recommendations for reforming the global financial system to better address the urgent needs of climate-vulnerable nations.54

For Barbados, the Bridgetown Initiative has played a crucial role in facilitating access to much-needed financing. The country has been a beneficiary of the IMF's Resilience and Sustainability Facility (RSF), which supports its climate policy reforms and helps mobilize further private and public sector financing for climate-related projects.13 The principles advocated by the Bridgetown Initiative have undoubtedly influenced the innovative financial strategies adopted by Barbados, such as the groundbreaking debt-for-climate swap.

8. The Debt-for-Climate Resilience Swap: A Case Study in Innovative Financing

A significant achievement for Barbados in its pursuit of financial resilience and climate adaptation has been the successful implementation of the world's first debt-for-climate resilience swap.5 This innovative transaction, completed in December 2024, allowed Barbados to generate approximately US$125 million in fiscal savings by replacing more expensive outstanding debt with more affordable financing.5 These substantial savings, combined with a US$40 million grant from the Green Climate Fund (GCF), are specifically earmarked for critical water reclamation and wastewater infrastructure projects.5

The primary focus of these investments is the upgrading of the South Coast sewage treatment plant into a modern water reclamation facility, which will produce water suitable for agricultural irrigation and groundwater recharge.5 This project has the potential to more than double water availability in Barbados by 2050, significantly enhancing the nation's water security and resilience to climate change.5 The debt-for-climate swap was structured as a Sovereign Sustainability-Linked Loan (SSLL), a pioneering financial instrument that includes sustainability targets related to the volume and quality of reclaimed water generated by the upgraded plant.5 Failure to meet these targets would result in financial penalties, which would be directed to the Barbados Environmental Sustainability Fund, further incentivizing environmental stewardship.5 The transaction was made possible through the collaboration and guarantees provided by international partners such as the Inter-American Development Bank (IDB) and the European Investment Bank (EIB), highlighting the crucial role of international cooperation in facilitating such innovative financing solutions.5

9. Conclusion: Assessing the Trajectory Towards 2035

Since the publication of "Barbados 2035: A Plan for Investment in Prosperity & Resilience" in June 2024, Barbados has demonstrated considerable momentum in pursuing its ambitious goals. The nation's strong macroeconomic performance, characterized by robust GDP growth, a declining debt-to-GDP ratio, moderated inflation, and healthy international reserves, provides a solid foundation for the plan's implementation. Significant initiatives aligned with the plan's objectives have been launched across various sectors, including the comprehensive Energy Transition and Investment Plan (ETIP) aimed at achieving net-zero emissions by 2035 and the groundbreaking debt-for-climate swap, which has unlocked substantial funding for critical water infrastructure projects.

Progress is evident across many of the twelve key investment priority areas outlined in the plan. Barbados has made notable strides in its blue economy ambitions, sustainable tourism development, efforts to enhance resilient housing, promotion of climate-smart agriculture, and initiatives to build safer and more empowered communities. Investments in resilient infrastructure, the pursuit of renewable energy independence, and projects aimed at achieving the Caribbean's gold standard for safe and secure water are also underway. Furthermore, reforms and upgrades are being implemented within the healthcare and education sectors, and significant advancements are being made in the nation's digital transformation agenda.

The successful execution of the debt-for-climate swap stands out as a prime example of Barbados' innovative approach to financing its development and climate resilience goals, directly addressing a key investment priority while simultaneously managing its national debt. The ongoing influence of the Bridgetown Initiative on the global financial architecture also bodes well for Barbados' ability to secure favorable financing terms and support for its long-term development vision.

While the progress made since June 2024 is encouraging, the "Barbados 2035" plan is a long-term undertaking with ambitious targets extending to the year 2035. Sustained commitment, effective governance, and continued collaboration with both domestic and international partners will be crucial for maintaining this positive trajectory and ensuring the successful realization of the plan's overarching vision for a sustainable, prosperous, inclusive, and resilient Barbados. Ongoing monitoring and evaluation of progress across all twelve investment priorities will be essential to identify areas requiring further attention and to adapt strategies as needed to navigate evolving challenges and opportunities.

10. Recommendations

Based on the progress observed and the ongoing nature of the "Barbados 2035" plan, the following recommendations are offered to further enhance its successful implementation:

• Prioritize and Streamline Implementation: The Barbados government should continue to prioritize and streamline the implementation of the twelve key investment priorities, ensuring that each priority has clearly defined targets, timelines, and responsible agencies. Regular monitoring of progress against these targets is essential.
• Strengthen Private Sector Engagement: Given the significant reliance on private investment (US$6.6 billion), proactive measures should be taken to further strengthen engagement with the private sector. This includes clearly communicating investment opportunities, providing a stable and attractive investment climate, and facilitating public-private partnerships.
• Actively Pursue Blended Finance: To bridge the estimated US$3.6 billion public financing gap, the government should actively pursue blended finance opportunities and strengthen partnerships with international development partners. This will help leverage public funds to attract private capital for key infrastructure and development projects.
• Monitor Governance Mechanisms: The effectiveness of the established governance and delivery mechanisms, including the Strategic Council, Public-Private Delivery Taskforce, and Joint Economic Group, should be continuously monitored and evaluated. Adjustments should be made as needed to ensure optimal coordination, efficiency, and accountability in plan implementation.
• Champion the Bridgetown Initiative: Barbados should continue its leadership role in championing the Bridgetown Initiative and advocating for global financial reforms that benefit climate-vulnerable nations. Success in this arena will directly support Barbados' ability to finance its "2035" vision.
• Explore Innovative Financing Solutions: Building on the success of the debt-for-climate swap, the government should explore similar innovative financing solutions for other priority areas outlined in the "Barbados 2035" plan. This could include exploring green bonds, sustainability-linked bonds, and other mechanisms to mobilize capital for specific projects.
• Enhance Monitoring and Evaluation: A robust monitoring and evaluation framework should be maintained and strengthened to track progress against the plan's objectives. This framework should include clear indicators, data collection mechanisms, and regular reporting to ensure accountability and inform adaptive management strategies.
• Promote Public Awareness and Engagement: To build broad support for the "Barbados 2035" vision, the government should continue to enhance public awareness and engagement efforts. This can include regular updates on the plan's progress, opportunities for public input, and highlighting the benefits of the plan for all Barbadians.