IMF: Caribbean Needs More Than US$100 Billion For Climate Resilience, Adaptation

• The International Monetary Fund (IMF) says the Caribbean needs more than US$100Bn in investments for climate resilience and adaptation. The sum is equal to about one-third of the region's annual economic output.
• The Caribbean is the most exposed region to climate-related natural disasters. Moreover, with electricity largely generated using fossil fuels, energy prices in the Caribbean are among the highest in the world, highlighting the need for investment in lower-cost and lower-carbon energy production.
• In a publication this week, the multi-lateral agency ranked the Caribbean region as the most vulnerable to natural disasters.
• The region is estimated to have realized an average cost of loss and damage due to natural disasters, at about 2.5% of gross domestic product for the period 1980 to 2020, and is ranked just ahead of the Pacific region, with the average estimate of losses being just above 2% of GDP for the same period.
• The IMF says the Caribbean continues to experience a shortfall in climate financing, with the current level of private climate funding being woefully inadequate. It says there is progress, however, with several initiatives, including the issuance of blue bonds, combined with debt-nature swaps for debt service reduction, which opens fiscal space for nature conservation investments.
• With Caribbean countries having only been approved for about US$800Mn from climate funds such as the Green Climate Fund, Global Environment Fund, and Adaptation Fund, the IMF says much more support is needed.

(Sources: IMF & RJR News)