CDB calls for Overhaul of financial practices during COP27

By Dana Malcolm

Staff Writer

November 16, 2022 – On day three of The Conference of the Parties 2022 or COP27, the focus was once again on vulnerable communities including developing states and especially small island developing states like much of the Caribbean and the effect of climate change on their economies and standard of living.

The UN advised during the session that ‘confronting these challenges calls for an investment into empowering local communities’ and ‘ensuring context specificity and national/local ownership.’

“It is of critical importance to enhance the access of locally-led climate adaptation projects to climate finance in a manner that increases their resilience and minimizes the scope of loss and damage they are subject to,” the organization said.

Earlier this year the Caribbean Development Bank at its Annual General Meeting of the Board of Governors held in the Turks and Caicos had made similar recommendations maintaining that the Caribbean needs ‘Access to Adequate and Affordable Finance.’

The CDB put the Caribbean’s financial needs alone at over 100 billion dollars in investments to hit all its goals which include climate change adaptation and mitigation.

In discussing a recent UN report on the issue at COP27 on Tuesday November 8, climate experts on the High-Level Advisory Group called for an overhaul of financial practices of large investors and moneylenders as well, not just countries.

“We did emphasize the need for financial institutions to have end dates for investments in coal power and gas, and on the solutions side we recommended strongly financial institutions– focus on developing and creating investment product that are aligned with net zero emissions and facilitate increase in renewable energy particularly in developing countries.”

This means monetary donations must be invested in small islands and other developing states and the developing states for their part have a responsibility to come up with innovative solutions that boost their resilience, mitigation and adaptation in regards to worsening climate catastrophes.