CIBC FirstCaribbean A Leader In Supporting Financing of Sustainable Infrastructure / Push for More Sustainable Airports Across the Caribbean at CARIF 2023
CIBC FirstCaribbean A Leader In Supporting Financing of Sustainable Infrastructure
Miami, Florida, 21 September 2023 — Advancing its dedication to maintaining strong environmental standards and promoting its commitment to financing sustainable infrastructure and environmentally friendly projects throughout the Caribbean, CIBC FirstCaribbean served as co-title sponsor for one of the region’s most pivotal conferences focused on the further development of green and sustainable infrastructure.
Speaking at the 7th Caribbean Infrastructure Forum, hosted by New Energy Events, CIBC FirstCaribbean Executive Director of Corporate Banking & Sustainable Finance, Gillian Charles-Gollop said the bank remains committed to facilitating sustainable financing for infrastructure projects that are climate resilient and will bode well for the region.
“We were one of the first regional banks that actually financed renewable energy,” Charles-Gollop said.
“We started with the 30-megawatt windfarm in Curacao, which has since been further developed. We’ve done renewable energy in Jamaica and Cayman Islands. So, it’s always been a commitment for us, in terms of investing in the region in a positive way. What we’re doing now is in line with some of the things we’ve been doing for the last 30 years,” she said.
“For example, we would use the equator principles as well, which really deals with sustainability and the environment. Part of our strategy is turning our buildings into more ‘green buildings’ and making them more energy efficient, in terms of conservation. We recently installed some of the electric chargers for vehicles and we have been encouraging our leaders to convert their vehicles to electric,” she added.
CIBC FirstCaribbean has remained at the forefront of financing sustainable and renewable energy projects, having invested in transactions totaling over $150 million in wind and solar projects across the region, according to the company’s Annual Report for 2022.
Through its Blue loan financing, the bank has co-arranged $146M in financing with $73M in committed funding for the Government of Barbados in relation to Marine Conservation.
“Blue Financing is really about how we in the region can protect our marine environment and best use the resources that we have to sustainably develop and drive the economy,” Charles-Gollop said.
“You not only have the marine environment for tourism, but the fisheries that supports our food industry. So, it is really about how we can really protect our marine environment but also be able to identify the areas where we can also use it for economic development, whether it be for tourism or the fisheries industry.”
According to Charles-Gollop, governments make up the lion share of applicants for Blue financing, keeping in line with countries’ global environmental commitments and targets.
CIBC FirstCaribbean’s parent company, CIBC Canada, has been a signatory on the UN Principles for Responsible Investment since 2018 and is a founding signatory on the 2050 Net Zero Banking Alliance. The bank remains actively engaged in supporting a number of causes across the business footprint through its charitable arm, the FirstCaribbean ComTrust Foundation.
During CARIF 2023, government leaders, as well as executives from the private and public sectors throughout the Caribbean engaged in active discussion centered around sustainable infrastructure for the region. Topics included meeting the infrastructure needs of the cruise tourism and shipping industry, building grid infrastructure for the future of Caribbean power, mobilizing capital for food security, and improving distribution networks.
Push for More Sustainable Airports Across the Caribbean at CARIF 2023
Miami, Florida, 21 September 2023 —Building, expanding and retrofitting airports in line with sustainability objectives took center stage during day two of the Caribbean Infrastructure Forum (CARIF) on Tuesday, as government and private sector executives shared their plans and made a push for more sustainable airports throughout the Caribbean.
Best approaches to mitigate increasing climate risk in transaction design, improving impact measuring and reporting as a means to stimulate investment appetite; as well as discussion around how governments can create policy and regulatory environments that stimulate the flow of private finance to sustainability, resilience and growth initiatives were key parts of the conversations emerging from the two-day conference in Miami, Florida.
Dr. Rafael Echevarne, Airports Council International Director for Latin America and the Caribbean, said there is the opportunity for the region to lead the way in sustainable and climate resilient airports.
“There are a lot of things that airports can do to reduce their impact on the environment, in relation to the emission of co2,” Echevarne said. “One of the great opportunities, from my point of view, is that the smaller airports in the Caribbean have a huge opportunity to generate electricity with solar. There are many airports, which we know, that can be self-sustainable when it comes to power being generated from solar. It’s a question of just doing the studies and allowing these airports to not only install solar, but sell the excess power to the grid. That is actually in the works for several airports within the region already.”
He continued, “The airports in the Caribbean can be the pioneers in this aspect. If there is something we are sure of in the Caribbean, there is sun and wind. There are definitely huge opportunities. Right now, the cost of installing solar panels has come down dramatically and considering the cost of energy, I don’t think it’s a difficult decision to make.”
Leveraging private capital in blue/green bond issuances in island economies and how to incorporate technology to maximize the functionality were also topics of discussion.
Filipe Pereira dos Reis, Regional Director of Airport Passenger, Cargo and Security of the Americas, said there needs to be short and long-term plans for the airports and projects to adequately address sustainable infrastructure.
“The challenge with short-term and long-term is that governments typically have a mandate of four to six years, depending on their term,” he said. “But we have to realize that our business [aviation] is a long-term business. So, it’s an infrastructural investment business which typically gets depreciated in 30, 40, 50 years. So, there needs to be a balance. We understand the needs of the government in looking for funding in the short-term, but at the same time we would wish that governments would look into the longer term. Why? Because we are a firm believer that the spin-off effects, economically speaking, of the businesses that we have, pay way more than looking at the short-term.”
Deputy Director General in The Bahamas’ Ministry of Tourism, Investments & Aviation Dr. Kenneth Romer said the archipelagic nation has made a serious commitment over the past few years to building climate resilient and environmentally friendly airports.
“Environmental concerns top our list at the moment, as it relates to the intensity of hurricanes and natural disasters and the threat they pose,” he said. “But, I think we have an opportunity to demonstrate to the rest of the region how serious and committed we are to supporting the message of sustainability that our prime minister has really been taking around the world. So, it’s time to put our money and our plans where our mouth is.”
In 2019 Grand Bahama, often called The Bahamas’ second city, took a major economic blow after communities and its international airport sustained major damage during the passage of Hurricane Dorian. Romer called the experience an “opportunity” to change they way airports are built throughout the country, becoming a ‘green’ airport pioneer.
“We need to look at solar power for our airports,” Dr. Romer said. “We need to look at green energy, we need to look at green airfields, we need to look at reducing the size of our physical infrastructure, while taking advantage of the kinds of assistance the international community can give us when we model what sustainable airports look like in the region.”
CIBC FirstCaribbean International Bank and KPMG served as the title sponsors for New Energy’s CARIF 2023.