Survival at Stake: Caribbean Calls For Just, Fair Financing For Small Island States at COP

• by Aishwarya Bajpai (baku)
• Monday, November 18, 2024
• Inter Press Service

Representatives from Caribbean islands have repeatedly expressed this ongoing concern at COP29.

Dr. Colin A. Young, Executive Director of the Caribbean Community Climate Change Center (CCCCC), reemphasized the catastrophic outcomes of the failure to meet emissions targets.

"What Hurricane Beryl demonstrated to the world is what happens when there is failure to meet the emission reduction target. To meet the temperature goal of the Paris Agreement requires a 43 percent reduction of greenhouse gases by 2030, a peak of fossil fuel production by 2025 and net zero commitments by 2050—without achieving these targets, we continue to face increased frequency and intensity of hurricanes and other climate-related disasters. Large countries often fail to grasp how such events devastate small economies, wiping out critical infrastructure—schools, healthcare, telecommunications, roads, and farms—paralyzing entire communities."

Instead of a rich future, the futures of the youth are in jeopardy.

"Our young people are inheriting a future where they cannot reach their full potential because of climate-related impacts. In some cases, it sets progress back by years, and in others, by decades."

Young reflected on the devastating economic toll of the climate disasters—effectively bankrupting small economies, leaving them significantly more vulnerable.

"We have witnessed the scale of destruction hurricanes can inflict. Hurricane Maria wiped out 226 percent of Dominica's GDP and two years earlier, Tropical Storm Erika had already devastated 90 percent of its GDP," he said. "This is a matter of survival for our countries and the failure of the developed countries to do more faster to curb emissions in line with the science."

 Morally Unjust, Bureaucratically Complex

Developed nations need to come to the party.

"G7 and G20 countries are responsible for 80 percent of all emissions. Yet, the burden of providing resources, technology transfers, and capacity building falls disproportionately on others—a morally unjust reality we are confronting."

Talking about finance and the New Collective Qualified Goal (NCGQ), a major outcome SIDS expects to come out of COP29, Young said he is concerned whether or not the NCQG will meet the needs of SIDS.

Young criticized the inefficiency of the current international climate finance system.

"The current international climate finance architecture is not serving the needs of small island developing states. It is too bureaucratic, complex and difficult to access."

He highlighted the disparity in funding distribution.

"Take the Green Climate Fund as an example. Out of the USD 12 billion approved, only 10 percent has gone to Small Island Developing States, and within that, the Caribbean has received less than USD 600 million. If resources from the New Collective Quantified Goal (NCQG) follow the same disbursement patterns, it's clear it won't serve our interests to meet the scale and speed of the urgent adaptation needs of our countries."

Radical Change Needed For Climate Financing

Piecemeal change will not work for SIDS, he told IPS.

"For Small Island Developing States, the system of accessing climate under the NCQG and Loss and Damage Fund cannot resemble the existing financial architecture. We need a finance mechanism that is streamlined, equitable, fit-for-purpose and truly responsive to our unique challenges."

"There is a significant lack of transparency in the climate finance space because developed countries continue to stymie efforts to clearly define what constitutes climate finance under the Paris Agreement."

Financing often comes as loans, and this has implications for SIDS. Recently, for example, the European Investment Bank (EIB) signed a Euro 100 million (USD 109.4 million) loan agreement with the Caribbean Islands.

Young highlighted the ongoing issues with climate finance transparency and the clarity on financing terms

"Certain types of investments, especially non-concessional loans, should not be counted as climate finance under the Convention. When we talk about the USD 100 billion annual target that developed countries have committed to since 2009, there is widespread disagreement among developing country parties on whether it has been met. The OECD claims it has, but developing countries argue that the funds are not visible or are difficult to track because of lack of transparency."

Young expressed concern over the mounting debt burden placed on SIDS because of climate change.

"What we're increasingly seeing is that we are being asked to shoulder a debt burden that is already alarmingly high—well above World Bank and IMF benchmarks."

He highlighted the cyclical nature of the crisis.

"We're forced to borrow to build resilience, but even within the loan repayment period, we're hit by multiple disasters again. It's a vicious cycle that leaves us unable to recover, exacerbating our debt level."

When asked about a single key negotiation or message to take forward from COP 29, his response was clear:

"The message is that we need greater ambition from developed countries to cut emissions in line with the science. And beyond that, they must deliver on the promises they've made to deliver finance at scale, adaptation finance, technology and capacity building to developing countries, particularly to SIDs and LDCs."

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© Inter Press Service (2024) — All Rights ReservedOriginal source: Inter Press Service

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