Draft Caribbean Development Bank (Eleventh Replenishment of the Special Development Fund (Unified)) Order 2026

Lincoln Jopp Excerpts

Monday 23rd February 2026 General Committees

[The Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs (Chris Elmore)]

I beg to move,

That the Committee has considered the draft Caribbean Development Bank (Eleventh Replenishment of the Special Development Fund (Unified)) Order 2026.

It is a pleasure to serve under your chairship, Ms Jardine, I think for the first time. The draft order will permit the UK Government to make financial contributions to the special development fund of the Caribbean Development Bank up to the stated values.

The Caribbean region is important to the United Kingdom, and our history and values are closely intertwined. Twelve of the 53 Commonwealth states are in the region, along with five out of the 14 UK overseas territories. There is a large Caribbean diaspora in the UK, and a significant number of British nationals visit as well as reside in the Caribbean. The Caribbean has strong economic links to the UK, and the UK was the destination for almost 10% of Caribbean goods exports in 2025. Although small in population size, countries in this region have a significant voice on global issues and in international organisations, including the United Nations. We have shared interests in areas such as tackling climate change, global financial system reform, combating crime and violence, and fostering trade and inclusive economic development.

The Caribbean Development Bank, or CDB, is the sole multilateral development bank that is exclusively focused on the Caribbean region, providing more than $312 million in 2024. The UK has a long-standing partnership with the CDB. We were one of the founding members and are the joint largest non-regional shareholder, with a 9.3% shareholding. The CDB plays a key role in the achievement of the UK’s regional development objectives of supporting sustainable development and tackling the impact of climate change.

Allow me briefly to take the Committee through the background and the purpose of the draft order. The special development fund, or SDF, is the consensual arm of the Caribbean Development Bank, which provides loans and grants to the most vulnerable countries in the region. It aims to reduce poverty, support human development, and strengthen climate and economic resilience across the Caribbean. It is replenished by donors every four years, and contributions to the fund come from regional and non-regional member countries of the Caribbean Development Bank, as well as from non-members. In line with our strategic shift towards multilateral assistance, the UK will commit up to £21 million to the SDF to maintain our position as the second largest donor.

The draft order will allow for the provision of the core funding by the UK. This replenishment will play a crucial role in supporting regional efforts to meet the sustainable development goals. The SDF will focus on promoting economic development and supporting increased resilience, with a particular focus on environmental resilience.

[Lincoln Jopp (Spelthorne) (Con)]

Can the Minister tell us who the largest donor will be?

[Chris Elmore]

If the hon. Member will give me two moments, I will get the correct name for him, because the list is not in front of me. It is in fact Canada—I am grateful to the officials on my left.

I will go through each point in turn. The SDF will build resilience against environmental stresses and disasters. It will fund climate adaptation, disaster risk management, biodiversity preservation and sustainable energy. That will include 10 km of new or improved sea defences and drainages, 6 MW of renewable energy and a reduction of 30,000 tonnes of greenhouse gas emissions annually. The SDF will ensure that Caribbean infrastructure, agriculture and small businesses are supported to thrive. It will do so by training over 10,000 agricultural workers, improving 2,000 hectares of land, providing $75 million in credit to over 1,000 small businesses, half of which will be women-owned businesses, and building or upgrading 200 km of roads.

The SDF will support poverty reduction efforts in the region and improve living conditions by targeting the most vulnerable communities. That will include improving water and sanitation for over 30,000 households, building or upgrading 1,700 classrooms, training over 18,000 teachers and improving learning conditions for 350,000 students. It will also improve financial systems and practices so that individuals, Governments and organisations can better manage risks and respond to uncertainty. Twenty Caribbean Ministries, Departments and agencies will benefit from strengthened systems and services. The SDF will strengthen and modernise institutions so that they can respond effectively to challenges. It will support digital transformation in 11 Caribbean Ministries and agencies to help them operate more efficiently.

The SDF is an essential lifeline to the region’s most vulnerable people who have faced multiple crises over the last few years, including climate-related shocks to which the region is exceptionally vulnerable. Supporting the SDF will help us to achieve our objective of a bigger, better and fairer global financial system that delivers for everyone and is fit for the future.

To conclude, the Caribbean Development Bank special development fund is instrumental in achieving UK objectives in the Caribbean region. The financial contributions covered by the draft order will deliver UK international development and foreign policy objectives in some of the world’s most climate-vulnerable countries. I commend the order to the Committee.