Caribbean Development Bank (CDB) Board of Governors Meeting May Port of Spain, Trinidad and Tobago Philip S Weech, Director, BEST Commission, Ministry of the Environment

Our climate is changing Impacts immediate, slow onset and longer term – Impacts will accelerate with time Entire Caribbean and all economic sectors are vulnerable Adaptation in all sectors - essential Action is required – supported by finance – technical assistance – ES Technology transfers needed

 Historical responsibility  Action to address climate change enshrined in the UNFCC Convention  Developed countries  Article 4 (3) new and predictable, agreed full cost reporting article 12, agreed full incremental costs Adequate and predictable flows, burden sharing (annex 1)  Article 4 (4) assist particularly vulnerable in meeting cost of adaptation  and Article 4 (5) promote, facilitate and finance environmentally sound technologies

Vulnerable Parties  Developing Countries  Article 4 (7)  The extent to which developing country Parties will effectively implement their commitments under the Convention will depend on the effective implementation by developed country Parties of their commitments under the Convention related to financial resources and transfer of technology and will take fully into account that economic and social development and poverty eradication are the first and overriding priorities of the developing country Parties.

 Article 4 (8)  In the implementation of the commitments in this Article, the Parties shall give full consideration to what actions are necessary under the Convention, including actions related to funding, insurance and the transfer of technology, to meet the specific needs and concerns of developing country Parties arising from the adverse effects of climate change and/or the impact of the implementation of response measures, especially on: (a ) Small island countries; (b) Countries with low-lying coastal areas; (c) Countries with arid and semi-arid areas, forested areas and areas liable to forest decay; (d) Countries with areas prone to natural disasters; (e) Countries with areas liable to drought and desertification; (f) Countries with areas of high urban atmospheric pollution; (g) Countries with areas with fragile ecosystems, including mountainous ecosystems; (h) Countries whose economies are highly dependent on income generated from the production, processing and export, and/or on consumption of fossil fuels and associated energy-intensive products; and (i) Landlocked and transit countries

Under Construction – Loss and Damage – Fast Start - Copenhagen Accord 30Billion – Longer term – Cancun Accords 100B Existing - – GEF an entity operating the Financial Mechanism of the Convention – SCCF, LDCF Existing - Under Kyoto Protocol – Adaptation fund GEF as the secretariat Features direct access

 World Bank (IBRD)  Climate Investment Funds  pledged more than US$6.1 billion a pair of international investment instruments designed to provide interim, scaled-up funding to help developing countries in their efforts to mitigate increases GHG emissions and adapt to climate change.  Bilateral  SIDS Dock Ltd.  ECPA (Energy and Climate Change Partnership of the Americas)

Implications for AOSIS – Political Developments No leadership from Annex I on KP, mitigation, legal form Challenged to make progress on mitigation and legal form Pressure on to “operationalise” Cancun outcomes – MRV, Green Fund, Technology Mechanism, Adaptation Framework US may have challenges re commitments e.g. Fast Start Strong effort to end KP Efforts to “divide” AOSIS and developing countries Any positive signs?? no island left behind

GEFProject based activities, small pool of money 1BUSD, Co- financing, mitigation focus, short duration, work with UN agencies (UNEP/UNDP/FAO etc.) Bilateral Aid Bilateral projects with often unilateral rules, donor set priorities may not match local needs, middle income countries harder to qualify, use of foreign expertise tie in to proprietary technologies WB Group Regional DBs UN System (UNEP, FAO, UNDP, ECLAC etc.) Useful Caribbean disaster risk insurance pool (too small?), loans some grants as seed to larger interventions, poverty reduction focus, middle income countries tighter requirements, all scales all sectors public and private (IFC) NationalWhy pay for damage not of your doing? Responding to climate change already being borne, costs will increase, Opportunity to link to bilateral focus, CDM projects, Adaptation fund direct access provisions (model for future)

 Cost estimates needed  Estimates of costs to adapt to CC in CDB borrowing member states  GEF incremental cost considerations  Support CDB BM to better take advantages of opportunities  GEF – Caribbean Biodiversity Fund synergies  Direct Access through the Adaptation Fund model  Implement CARICOM regional energy strategy  COTED March then CARICOM HOG meeting July 2011  Regional energy projects  E.g. geothermal – OAS/ECPA Dominica and environs

 Renewable energy expansions  Insurance pool for hurricane risk associated with RE expansions  Policy reform(s), energy pricing, electricity sector reforms, private and public sector efforts  Demonstration climate proof CDB projects  Loss and Damages  Expansion of Caribbean Disaster Risk programme

 NO!!  Opportunities exist  Regional development banks involvement in climate financing exists! ADB, AfDB  The Caribbean despite its high vulnerability to the adverse impacts of climate change have taken in initial (very small/modest steps)  Caribbean Disaster Risk insurance  More - Much More Needed

Philip S Weech Director, The Bahamas Environment Science and Technology (BEST) Commission, Ministry of the Environment (MTE) Commonwealth of The Bahamas. 2 Floor Dockendale House, West Bay Street, Nassau, N. P. Bahamas