DUBAI, CMC -Bahamas Prime Minister Phillip Davis says the designation of the Caribbean nation as a high-income nation leaves it unable to entry “truthful and concessional financing” wanted to reply successfully to the impression of local weather change.
Addressing the launch of the Bahamas sustainable funding program on the United Nations Local weather Change Convention (COP 28), Davis mentioned Nassau is working with different small island nations to combat for carbon emissions reductions, strengthening its capability to reply to hurricanes.
“Considered one of our responses has been the launch of a Nationwide Youth Guard in order that younger Bahamians can work alongside our catastrophe response groups and our nationwide safety forces in coping with the passage of storms,” he mentioned, noting {that a} merciless irony is that the 4 huge hurricanes in underneath ten years have value the nation billions of {dollars} ‘leaving us with out the fiscal house we have to prepare for the next storms.
“Over a 3rd of our nationwide debt outcomes from the impression of hurricanes. In addition to the direct expenditure, consider the chance value concerned. This cash might have been used to construct badly wanted hospitals, faculties, roads, and so on. It’s a type of double-whammy”.
Davis mentioned that topping the lists of nations most susceptible to local weather change makes borrowing costlier.
“On daily basis, we’re paying for the hurricanes we’ve already suffered and those but to come back. As well as, the designation of our nation as a high-income nation leaves us unable to entry truthful and concessional financing,” he added, “and we desperately want financing to assist our efforts in restoration and adaptation.
“So we’re trapped in a cycle during which our debt-servicing obligations power under-investment in our capability to make ourselves extra resilient. Mates, we urgently want new and artistic local weather finance options.
“That’s why we’re so enthusiastic about The Bahamas Sustainable Funding Programme,” he mentioned, noting that by this initiative, the Bahamas will ” survive an period of super-charged storms by creating super-charged, win-win funding partnerships.
“Together with our strategic advisors, Resilience Capital Ventures, we are going to work with regional and international capital market leaders to underwrite and put in place an modern financing facility,” he mentioned, including that the nation goals to safe a facility of US$500 million.
“Our priorities for this fund embrace spending to make our infrastructure extra climate-resilient, our transition to scrub vitality, conservation of our coastal zones, discount in biodiversity loss, regenerative agriculture, carbon sequestration, and participation in pure asset-backed carbon credit score applications.”
He mentioned blended finance is a brilliant option to shut the local weather financing hole at a time when options can’t be postponed, including” we is not going to despair” and stays very optimistic.
Davis mentioned that his optimism is predicated on his perception that “small island nation” means “massive ocean state.”
“Our nation’s seagrass meadows, which cowl an astonishing 97,000 sq. kilometers, soak up extra carbon than the Amazon Rainforest. We’ve got been mapping our seagrasses with assist not solely from scientists but in addition from tiger sharks.
“Tiger sharks are a important a part of our underwater surveying staff…they swim by our waters sporting cameras and sending again information factors. It’s at all times good to have apex predators in your facet.”
Davis mentioned the sharks would assist the Bahamas turn out to be the primary to subject Blue Carbon Credit.
“So, as you possibly can see, small nations will be massive pioneers. My authorities and the folks of The Bahamas have already engaged with the Clinton International Initiative on this Dedication to Motion,” he mentioned, urging delegates to affix the initiative.
“Whether or not you companion with us on funding and financing or by offering technical and advisory experience, the door for collaboration is vast open. There may be, certainly, a path ahead that may give my nation many extra tomorrows. We invite you to be a part of it,” Prime Minister Davis added.
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