Community News
Canada has doubled its previous commitment to support the Caribbean
BY SIMONE J. SMITH
It is that time again, yes, the 2023 Caribbean hurricane season will have a near normal level of activity, according to the National Oceanic and Atmospheric Administration.
“NOAA is forecasting a range of 12 to 17 total named storms (winds of 39 mph or higher),” the NOVAA says. “Of those, five to nine could become hurricanes (winds of 74 mph or higher), including one to four major hurricanes (category 3, 4 or 5; with winds of 111 mph or higher). NOAA has a 70% confidence in these ranges.”
The annual hurricane season officially begins June 1st, 2023, and ends November 30th, 2023. September historically is the worst month of the season for hurricane and tropical storm risk for cruise and resort visitors.
It should also be noted that the Caribbean is the most exposed region to climate-related natural disasters, with estimated adaptation investment needs of more than $100 billion, equal to about one-third of its annual economic output. It brought me back to my experience earlier this summer when I visited St. Lucia for their 53rd Annual Meeting of the Board of Governors. My experience was cut short due to an impending Tropical Storm that was threatening the island. As disappointed as I was, I understand the challenges that small island developing states (SIDS) face and why they are vulnerable to extreme weather conditions.
Over the last few months, I have had an opportunity to research some of the issues that SIDS face, and the most glaring issue is their access to private climate financing. A pipeline of bankable climate projects is critical for raising private financing, but this remains insufficient due to limited capacity and expertise for project preparation. Similarly, qualification requirements to access climate funds are often beyond the administrative capacity of small country and microstates’ governments, given the fixed costs of project evaluation and appraisal.
There is good news; Canada is committed to working in partnership with the Caribbean Development Bank to respond to these challenges and to support their efforts to promote green, resilient and inclusive growth. Canada welcomes the Bank’s engagement on MDB evolution. Global challenges and national development objectives are intrinsically linked, and in a statement by the Governor for Canada, The Honourable Harjit S. Sajjan, recognizes that it is essential to have an inclusive dialogue among all members on how together, they can best address these concerns.
“Canada recognizes that small island developing states (SIDS) are particularly vulnerable to economic and climate-related shocks, and that more action is needed to address their unique vulnerabilities,” Governor Sajjan states. “We are supportive of ongoing efforts to better assess these vulnerabilities and take them into account.”
Canada supported the establishment of the International Monetary Fund’s new Resilience and Sustainability Trust (RST) and was successful in advocating for broad eligibility, including for SIDS. Canada has contributed $2.4 billion to the RST and have now channeled 38% of their 2021 SDR allocation in support of low-income and vulnerable countries.
“Earlier this year,” Governor Sajjan continued, “I had the opportunity to visit both Barbados and Jamaica, where I had the chance to learn more about their approaches to climate resilience and disaster preparedness. I look forward to continuing to broaden my understanding of both the challenges facing the Region, as well as regional opportunities and solutions for transformative development.”
As noted earlier, the Caribbean is particularly vulnerable to climate change and biodiversity loss. Single storms can have enormous costs for small economies. Canada has doubled its previous commitment to international climate finance to $5.3 billion over five years, including increased funds for adaptation and biodiversity. In February 2023, Canada announced $44.8 million in new initiatives to help support the Caribbean Community to protect biodiversity and improve climate resilience.
“We also encourage the Bank to align its funding with the Kunming-Montreal Global Biodiversity Framework to help meet our goal to mobilize $200 billion in funding per year by 2030 from all sources, including through the new Global Biodiversity Framework Fund.
We also welcome the historic COP27 decision to establish new funding arrangements for loss and damage. Through its seat on the transitional committee on loss and damage, Canada is committed to delivering recommendations on all aspects of the COP27 decision on loss and damage,” Governor Sajjan stated proudly.
He notes at the end of his statement that mobilizing the private sector is critical. “The financing gap related to global climate action needs can only be bridged through a combination of public and private sector investments. Canada will continue to partner with CDB to leverage, de-risk and forge enabling environments for private investments.”
Caribbean countries face real and pressing challenges, and there are high expectations for the Caribbean Development Bank to develop solutions. Thankfully, Canada is committed to working with member countries to support the CDB in meeting these challenges.