The world's most climate-vulnerable nations are preparing to secure more affordable capital featuring extended repayment terms through the new Vulnerability to Viability (V2V) Compact. Developed in collaboration with development finance institutions and led by the OPEC Fund for International Development, the compact was introduced at the OPEC Fund Development Forum held in Vienna.

This joint effort between the OPEC Fund and the Government of Barbados, serving as Chair of the Climate Vulnerable Forum and its V20 Finance Ministers, seeks to increase the availability and affordability of development funding for economies that have contributed minimally to global emissions yet face outsized impacts. The platform unites 74 climate-vulnerable economies with more than 15 partner institutions, including members of the Arab Coordination Group, African Development Bank, Asian Development Bank, Caribbean Development Bank, Development Bank of Latin America and the Caribbean, Inter-American Development Bank, International Fund for Agricultural Development and the World Bank Group. It aligns financial resources, technical expertise and nationally determined priorities.

The compact targets three key areas vital for sustained resilience and human security: water, education and health. It combines lower-cost, reliable financing with efforts to attract private investment and tools that respond to shocks, enabling nations to maintain critical services before, during and after emergencies.

Barbados Prime Minister Mia Amor Mottley stated that nations are constructing water systems, schools and medical facilities intended to benefit citizens for generations, yet they must often repay related debt within ten years. The V2V Compact directly addresses this imbalance by emphasizing that countries set the direction while finance institutions provide support. It shifts from traditional donor-recipient dynamics toward genuine partnership and mutual accountability. For the 1.7 billion residents of CVF-V20 countries, the initiative focuses on achieving viability and prosperity rather than mere survival, by unlocking capital on sustainable terms.

OPEC Fund President Abdulhamid Alkhalifa noted that the compact embodies the institution's founding principles of solidarity, partnership and concrete results. Over five decades the OPEC Fund has extended 17 billion dollars in assistance to V20 nations and remains dedicated to strengthening this collaboration. Linking national leadership with development finance support offers all parties improved opportunities to invest, expand economies and safeguard communities.

Alongside the launch, efforts to operationalize the compact continue rapidly. A White Paper detailing implementation mechanisms is planned for release during the World Bank and International Monetary Fund Annual Meetings in Bangkok in mid-October.

The V2V Compact functions as an open platform intended to expand. Additional development finance institutions are encouraged to participate by aligning resources with country-driven priorities, thereby increasing access to affordable finance, minimizing duplication and achieving larger-scale outcomes for climate-vulnerable nations.

About the OPEC Fund

The OPEC Fund for International Development stands as the sole globally mandated development agency that channels financing exclusively from member states to non-member countries. It collaborates with developing partners and the broader international community to foster economic growth and social advancement in low- and middle-income nations. Founded in 1976, the organization focuses on people-centered projects addressing basic requirements including food, energy, infrastructure, small-business employment, clean water and sanitation, healthcare and education. To date it has approved more than 32 billion dollars for initiatives across over 125 countries, with total project value surpassing 240 billion dollars, representing roughly 7.50 dollars mobilized per dollar committed. Rated AA+ with stable outlook by both Fitch and S&P, the OPEC Fund envisions sustainable development realized for everyone.

About the CVF-V20

The CVF-V20 encompasses 1.7 billion people in 74 member countries spanning small island developing states, least developed countries, low- to middle-income nations, landlocked developing countries and fragile or conflict-affected states. The group pursues climate justice by advancing Climate Prosperity Plans that feature ambitious strategies for economic and financial resilience. These plans aim to draw investment supporting the Sustainable Development Goals, the 30x30 Global Biodiversity target and efforts to limit global temperature rise to the Paris Agreement's 1.5 degrees Celsius threshold.