Pegasus Capital Advisors Marks Milestones in Climate Action With Blue Green Bank Passage & Funding Agreement With Green Climate Fund in Barbados

Key milestones accelerate the establishment of the Blue Green Bank

BARBADOS | August 5, 2024 ― Pegasus Capital Advisors, a leading global private markets impact investment manager, has announced the passage of the Blue Green Bank Act and the signing of a funding agreement with the Green Climate Fund (GCF), key milestones for the establishment of the Blue Green Bank (BGB).

The BGB is an innovative finance vehicle aimed at enhancing climate resilience across Barbados and the wider Caribbean. Given its track record in climate finance and enthusiastic commitment to Caribbean projects, Pegasus Capital has been actively involved in the creation and establishment of BGB from the beginning and will be involved in its administration and oversight going forward. With support from the U.S. Agency for International Development (USAID), Pegasus Capital has helped to accelerate the BGB’s operationalization, putting it on a faster path to channeling finance toward local climate solutions and resilience.

Small islands like Barbados face heightened vulnerability to rising sea levels and intensified weather events from climate change. Barbados estimates that the financing necessary to achieve climate resilience is approximately USD 2 billion, or 40% of its GDP. The BGB offers a vital financial mechanism to address these urgent needs.

Senator the Hon. Chad Blackman, LLB, LLM, ACIArb, Minister in the Ministry of Economic Affairs and Investment said: “With the establishment and passage of the Blue Green Bank Act, additional flows of critical investment finance can now be channeled through various sectors, especially the energy, agriculture, tourism, social, and the blue and green sectors of the economy to assist creditors and investors, both private and public, in formulating more sustainable finance mechanisms to develop mitigation and adaptation resilient capacities, and to build and strengthen infrastructures through projects that are aligned to national priorities to respond to the very real challenges of climate change.”

“These recent milestones to advance the Blue Green Bank are critical accomplishments that will help us increase climate resilience and economic stability in Barbados and beyond,” said Craig Cogut, founder, chairman and CEO of Pegasus Capital Advisors. “The BGB will allow us to accelerate, scale and replicate diverse investment models that deliver impactful change and ensure a sustainable and resilient future in Barbados.”

Mafalda Duarte, GCF Executive Director said: “The Barbados Blue Green Bank is a prime example of how the Green Climate Fund empowers countries to lead climate action. We are proud to partner with Barbados, USAID, Pegasus Capital, and The Rockefeller Foundation to create an institution poised to make a lasting impact on sectors such as energy and resilient housing as Barbados works toward ambitious climate goals, including a target of 100% clean energy by 2030.”

“This work marks an important step toward reforming global financial systems to provide more support and funding for countries to tackle climate change and pursue sustainable development,” said USAID Deputy Administrator Isobel Coleman in her keynote address at the Caribbean Investment Forum earlier this month. “Funding from USAID, the Government of Barbados, and the Green Climate Fund is expected to leverage up to $210 million in private capital for green assets and climate projects that support the most vulnerable in Barbados and the wider Caribbean region – serving as a global model for climate-resilient investment.” 

“The government of Barbados and the Green Climate Fund’s innovation is the sort of people-centered climate solution the world needs today,” said Dr. Rajiv J. Shah, President of The Rockefeller Foundation. “Much like the Bridgetown Initiative, this bank may have started in Barbados, but it shows the world what’s possible and sets a model for ways to reverse the climate crisis while advancing opportunity especially for vulnerable people.”

The approval of the BGB Act marks a transformative moment for Barbados and the wider Caribbean, establishing a pioneering financial institution to tackle climate change challenges through integrated development and investment banking. The BGB will focus on unlocking capital to address immediate threats like rising sea levels and extreme weather events while also promoting long-term economic stability and environmental sustainability.

Initial capital for the BGB was secured through funding from the Green Climate Fund, USAID, and the Government of Barbados. The Rockefeller Foundation provided support to help establish the bank, focused on the financial instruments, market opportunities, and technologies that the bank could use to deliver critical finance to a front-line region facing climate change. Originally conceptualized by the Barbados Prime Minister Mia Mottley to help Caribbean countries to meet their targets for Nationally Determined Contributions and achieve a climate-resilient low-emission future, BGB, whilst initially focused on Barbados, aims to expand over time to the rest of the Caribbean.

The BGB aims to provide financing for projects that help with climate change mitigation and adaptation, including resilient housing, renewable energy generation and energy efficiency, water conservation, food security, and low-carbon transport, engaging banks, credit unions, pension funds, and insurance companies. With funding from the GCF, the BGB strives to accelerate the implementation of sustainable solutions and reinforce Barbados’ capacity to mitigate climate risks and build a more resilient future.

About Pegasus Capital Advisors, L.P.

Pegasus Capital Advisors, L.P. (http://www.pcalp.com) is a leading global private markets impact investment manager. As the first U.S. private equity fund manager accredited by the Green Climate Fund, Pegasus Capital is dedicated to fostering sustainable and inclusive growth while providing attractive returns for investors. Founded in 1996 by Craig Cogut, Pegasus Capital has invested over $2 billion across 7 private equity funds focused on sustainability, health, and wellness, including the Subnational Climate Fund and Global Fund for Coral Reefs.

About The Rockefeller Foundation

The Rockefeller Foundation is a pioneering philanthropy built on collaborative partnerships at the frontiers of science, technology, and innovation that enable individuals, families, and communities to flourish. We make big bets to promote the well-being of humanity. Today, we are focused on advancing human opportunity and reversing the climate crisis by transforming systems in food, health, energy, and finance. For more information, sign up for our newsletter at www.rockefellerfoundation.org/subscribe and follow us on X @RockefellerFdn and LI @the-rockefeller-foundation.

This press release first appeared in pcalp.com on August 6th, 2024, and is reposted with permission.