Prime Minister Mia Mottley is sounding a clarion call for increased private sector engagement in the face of the escalating climate crisis.
Her rallying cry came during the $100 million CARICOM Resilience Fund (CRF) launch on Friday.
Mottley characterised the climate crisis as an existential threat to economies worldwide, emphasising that the traditional structures of economic evolution are now in serious jeopardy.
Drawing attention to global indicators, particularly the recent decision by insurance companies in California to withdraw coverage for fire risks amidst devastating wildfires, she painted a vivid picture of the challenges the Caribbean region may soon face within its insurance industry.
“We’ve [also] seen in Florida that many insurance companies are narrowing what they are prepared to accept as risk, and while the state has the federal government to support it and the residents of Florida have the ease of which they can make decisions to move to another state without having to contend with the difficulties of citizenship and permission, our people in the region who are an extension of the same risk that Floridians face do not have that luxury or option,” she said as she shifted focus to the regional landscape.
The PM stressed the importance of proactive preparation and the establishment of natural disaster clauses as vital tools for navigating the uncertain landscape of climate-related challenges, and commended the success of the Bridgetown Initiative which was launched in 2022 and proposed an automatic debt suspension in the case of serious disasters.
However, she admitted that the missing piece of the resilience equation lies within the private sector.
“We need now to ensure that this simple clause that allows us to pause our debt payments, principal and interest for two years in order to be able to sustain the integrity of the loan instrument . . . [is] replicated in private sector instruments in this Caribbean region,” she said, emphasising that the time has come for businesses, large and small, to actively participate in mitigating risks and investing in long-term resilience.
Making a comparison between well-built houses and resilient businesses, Mottley urged companies to incorporate natural disaster clauses into their financial instruments.
She acknowledged the contributions of key partners, including USAID, the Green Climate Fund, the Latin American Development Bank, revealing committed funds totalling $47.5 million and articulating an ambitious goal to secure hundreds of millions more within the next five years.
Mottley also encouraged businesses and individuals across the Caribbean to recognise their pivotal role in building resilience, emphasising that every dollar invested now could avert seven dollars in potential damages.
Berisford Grey, president and CEO of Sygnus, the Fund Manager for the CRF, joined the call for investments.
The launch of the CRF also featured addresses from the United States Ambassador to Barbados, the Eastern Caribbean, and the OECS, Roger Nyhus and Chief Executive Officer of the CARICOM Development Fund Rodinald Soomer.
(SKM)
