Big push for climate financing continues

The governments of Anguilla, BVI and Montserrat that do not qualify for climate resilience financing were the focus of a recent ‘Policy Dialogue on Improving Access to Development Finance in Eastern Caribbean Overseas Territories.

The special meeting was hosted by the BVI and co-chaired with the UN Resident Coordinator’s Office for Barbados and the Eastern Caribbean ahead of the upcoming 4th International Conference on Small Island Developing States (SIDS4) in Antigua and Barbuda from May 27 to 30.

Nearly 80 participants from 14 UN agencies, the Caribbean Development Bank (CDB), the Organisation of Eastern Caribbean States, the United Kingdom, Aruba Anguilla, BVI, and Montserrat discussed the challenges experienced by the Eastern Caribbean-based Overseas Territories due to their lack of access to development finance such as concessional financing, grants, and climate finance. 

The participants acknowledged how this constraint is affecting the ability of the respective governments to build sustainable and climate-resilient societies. The government of Aruba also described how Dutch islands such as Aruba, Curacao and Saint Maarten are similarly affected by very limited access to development finance.

Additionally, the participants discussed the high vulnerability of Anguilla, BVI and Montserrat as Caribbean SIDS to external shocks such as hurricanes and affirmed that their vulnerability should be a major factor considered by international donors, development partners, international organisations and development banks when determining their eligibility for development finance.

Other sources of funding discussed to help support sustainable development and climate change included green finance (i.e., green bonds and blue bonds), private climate finance, adaptation finance, and blended finance.

Speaking on the success of the Policy Dialogue, BVI Representative to the UN system in Latin America and the Caribbean, Special Envoy Benito Wheatley, said, “This was a very important step in the collaborative efforts by the BVI, UN and other development partners to unlock the development finance needed by Eastern Caribbean Overseas Territories and other SIDS for their sustainable development and climate resilience.”

“There is much more work to be done to address this issue if we are to successfully adapt to climate change, achieve the SDGs by 2030, and leave no one behind. The BVI will continue to advocate on behalf of the Associate Members of the UN regional commissions,” Wheatley said.

The collaboration to seek more financing is part of a response to the high costs faced by small states that need to adapt to the negative effects of climate change and achieve the Sustainable Development Goals (SDGs) by 2030.