Small Island Developing States (SIDS) are grappling with substantial barriers in securing global climate finance. A recent report titled “Financing SIDS’ Blue Development: An Assessment of Regional Delivery Frameworks,” launched by Back to Blue—a collaborative initiative from Economist Impact and The Nippon Foundation—highlights that these islands, despite their urgent need for funding, are often viewed as too small, fragmented, and high-risk by international funding bodies.
The report emphasizes that, while SIDS find themselves on the frontlines of climate change, they struggle to attract necessary financial investment. It is estimated that these island nations require approximately $12 billion annually for climate-related initiatives, yet currently receive only a fraction of this amount.
SIDS, situated across the Caribbean, Pacific, and Indian Oceans, account for less than 1% of global greenhouse gas emissions but are already suffering from severe climate impacts, such as rising sea levels, extreme weather, and the degradation of marine ecosystems. Peter Thompson, the UN Special Envoy for the Ocean, pointed out the injustice in the current global financial systems, asserting that SIDS should be prioritized for climate finance. He argued that these nations are facing repercussions from a crisis they did not induce, and their unique circumstances leave them vulnerable to funding shortfalls.
Thompson highlighted the pressing need for reforms in global financing, warning that without significant changes, SIDS will remain perilously exposed to climate threats. “Until the system radically improves, SIDS will remain dangerously exposed,” he stated emphatically.
To tackle these challenges, the report proposes actionable strategies to improve access to funds. These include enhancing regional delivery frameworks, pooling various projects to reduce perceived financial risks, and creating funding models specifically designed to address the needs of small and vulnerable economies. By adopting these recommendations, there is hope for establishing a more equitable financial support system for SIDS, empowering them to bolster their resilience against the escalating threats posed by climate change.