Canada says it will deploy an estimated US$97 million through the GAIA Climate Loan Fund, which is designed to provide long-term loans for climate adaptation and mitigation projects across emerging markets and developing economies.

It specifically targets regions highly vulnerable to climate change, including Least Developed Countries (LDCs) and Small Island Developing States (SIDS).

A government statement issued Thursday following talks between Prime Minister Mark Carney and Barbados Prime Minister Mia Mottley, said Canada viewed the GAIA Climate Loan Fund, the landmark blended finance platform co-created by FinDev Canada and Mitsubishi UFJ Financial Group (MUFG), with support from the Green Climate Fund, as a platform to reduce the burden of public dollars by adding private and philanthropic financing to fund development projects.