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Washington, D.C. | April 23, 2025—Central Bank Governors from the V20 Finance Ministers of the Climate Vulnerable Forum are making significant strides in establishing “Lifeline,” a pioneering multi-regional financing facility poised to deliver rapid and reliable liquidity to economies reeling from climate-induced disasters.
Convening in Washington, D.C., on the sidelines of the 2025 World Bank Spring Meetings, the V20 Central Bank Governors Working Group dedicated its third session to refining the intricate details of Lifeline’s structure, governance framework, and funding mechanisms, with an anticipated launch in early 2026.
Lifeline, which received strong backing during the Working Group’s October 2024 session, is envisioned to provide short-term liquidity and balance of payments support in the wake of climate-related disasters. The initiative reflects a growing consensus within the V20 that financial self-reliance, backed by South-South cooperation, is part of the solution to overcoming the cascading impacts of climate change within a global system that too often overlooks vulnerable nations.
Dr. Kevin Greenidge, Governor of the Central Bank of Barbados and Chair of the Working Group, underscored the collective imperative to reshape the global financial architecture to better serve vulnerable nations:
“We have an opportunity to diversify partnerships by design—not just to hedge volatility, but to build a financial system we can trust. By co-developing liquidity mechanisms, we unlock the potential of our economies and create a financial ecosystem that is responsive to the risks we face.”
He added that existing global systems often fail to accommodate the specific challenges of climate-vulnerable economies: “Our struggles are not rooted in a lack of ambition. They stem from a system that was never built with our realities in mind.”
Echoing this urgency, H.E. Mohamed Nasheed, Secretary-General of the CVF-V20 Secretariat and former President of the Maldives, warned against the deepening financial risks for member countries.
“We face an era of escalating climate disasters. Without timely intervention, short-term liquidity pressures can spiral into debt crises. Our economies need predictable, fit-for-purpose solutions—ones that combine financial stability with climate resilience and inclusive development.”
The Lifeline facility aims to complement ongoing efforts to scale up emergency lending at favorable rates, and boost financial resilience and adaptation capacity in the face of worsening climate impacts. Further developments are expected to be announced at the upcoming V20 Ministerial Dialogue in October 2025.
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About the V20 Central Bank Governors Working Group
Formed during the V20 Ministerial Dialogue XI in October 2023, the Working Group brings together central banks from Climate Vulnerable Forum (CVF) countries to co-develop innovative financial instruments and strategies that promote economic stability and climate resilience.
