Caribbean Looks at Financial Approach to Combat Climate Change

The Caribbean is " the most vulnerable region in the world to natural hazards" and natural hazards "have been increasing in intensity and adversely impacting the region's economic growth," according to Warren Smith, president of the Barbados-based Caribbean Development Bank (CDB). A recent  International Monetary Fund (IMF) report states that the annual economic cost of damage due to natural hazards is one percent of gross domestic product (GDP).

Furthermore, Smith declared that "growth prospects for our most vulnerable countries will be enhanced if resources for climate resilience can be front-loaded as part of a more comprehensive adjustment package... Climate adaptation interventions should be fast-tracked and targeted at the most vulnerable economic sectors, primarily tourism and agriculture."

The CDB along with the European Investment Bank are developing projects with a funding amount of less than 65 million dollars under the Climate Action Line of Credit (CALC). This credit line finances low cost projects that builds resilience against climate change, such as reducing greenhouse gas emissions, land degradation and dwindling water supplies.

To read more on this topic: Caribbean Looks at Financial Approach to Combat Climate Change