The Compact, a joint initiative by the OPEC Fund and the Government of Barbados, the Chair of the Climate Vulnerable Forum and its V20 Finance Ministers (CVF-V20), aims to mobilize much-needed flow and affordability of development finance to economies that have contributed the least to global emissions but suffer disproportionately. Bringing together 74 climate-vulnerable economies and over 15 partner development finance institutions, including members of the Arab Coordination Group, African Development Bank (AfDB), Asian Development Bank (ADB), Caribbean Development Bank, Development Bank of Latin America and the Caribbean (CAF), Inter-American Development Bank (IaDB), International Fund for Agricultural Development (IFAD) and the World Bank Group, the V2V Compact provides a platform for aligning finance, expertise, and country-led priorities.
The V2V Compact focuses on three sectors central to long-term resilience and human security: water, education and health. By combining more affordable and predictable finance with private capital mobilization and shock-responsive tools, the framework aims to help countries sustain essential services before, during and after crises.
Prime Minister of Barbados, The Honourable Mia Amor Mottley, said, "Our countries are building water systems, schools, and medical infrastructure that will serve our people for generations, yet we are asked to finance them with debt that will become due within a decade. The V2V Compact confronts that injustice head-on. It rests on a simple principle: Countries lead, and finance institutions align. It replaces the old donor-recipient relationship with genuine co-investment and shared responsibility. For the 1.7 billion people who reside in the countries under the umbrella of the CVF-V20, this Compact is about securing not just survival, but viability and prosperity. Our countries deserve sustainable pathways to development and that can only happen by unlocking affordable capital."
OPEC Fund President Abdulhamid Alkhalifa said: "The V2V Compact reflects what the OPEC Fund was created for: solidarity, partnership and practical action. Over the past five decades, our institution has provided US$17 billion in support to countries of the V20 Group and we are committed to building on this partnership. By linking country ownership with development finance support, the Compact gives everyone a fairer chance to invest, grow and protect lives and livelihoods."
In parallel with today's V2V launch, work is continuing at full speed to make the Compact operational. A White Paper on practical mechanisms for the implementation of the initiative is scheduled to be launched at the Annual Meetings of the World Bank and the International Monetary Fund in mid-October in Bangkok.
The V2V Compact is designed as an open platform that will grow over time. Other development finance institutions are invited to join, aligning their support behind country-led priorities to expand access to affordable finance, reduce fragmentation, and deliver results at scale for climate-vulnerable countries.
About the OPEC Fund
The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively. The organization works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world. The OPEC Fund was established in 1976 with a distinct purpose: to drive development, strengthen communities and empower people. Our work is people-centered, focusing on financing projects that meet essential needs, such as food, energy, infrastructure, employment (particularly relating to MSMEs), clean water and sanitation, healthcare and education. To date, the OPEC Fund has committed more than US$32 billion to development projects in over 125 countries. These projects represent a total value exceeding US$240 billion, equivalent to approximately US$7.50 mobilized for every US$1 committed by the OPEC Fund. The OPEC Fund is rated AA+/Outlook Stable by Fitch and AA+, Outlook Stable by S&P. Our vision is a world where sustainable development is a reality for all.
About the CVF-V20
The CVF-V20 represents 1.7 billion people across 74 member countries from small island developing states (SIDS), least developed countries (LDCs), low to middle-income countries (LMICs), landlocked developing countries (LLDCs), and fragile and conflict-affected states (FCS). Working together, the CVF-V20 aims to achieve climate justice through the realization of Climate Prosperity Plans, which contain ambitious economic and financial resilience strategies designed to attract investment and resources that advance the attainment of the Sustainable Development Goals (SDGs), 30×30 Global Biodiversity, and help keep the average global temperatures to the Paris Agreement's 1.5°C safety threshold.
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