Despite an abundance of natural resources; providing accessible, affordable, and reliable energy continues to be a challenge for many countries in the Caribbean Basin. The large majority of Caribbean Basin countries rely on oil or fossil fuel imports to meet their domestic demand, with ten countries importing over 80% of their total energy needs. This reliance on imports leads to high electricity costs and macroeconomic volatility that national governments are unable to stabilize. These price fluctuations affect the ability of Caribbean and Central American small and medium sized enterprises to predict future cash flows and costs, compromising the regions’ competitiveness and productive efficiency. This energy context further exacerbates the perception of private investments in the region as too high-risk to undertake, resulting in a lack of access to financing for these types of investments. The CABEF is being proposed as the first clean energy fund for the Caribbean Basin and the first with a dedicated focus on the Caribbean. CABEF will foster private investments that promote energy security, environmental sustainability by primarily providing equity and mezzanine financing for project development. The Fund will serve as a catalyst for promoting investment and entrepreneurship in clean energy, renewables, and energy efficiency projects by demonstrating positive returns on investments and signaling the market opportunity to other investors.