DUBAI, CMC -Bahamas Prime Minister Phillip Davis says the designation of the Caribbean country as a high-income nation leaves it unable to access “fair and concessional financing” needed to respond effectively to the impact of climate change.
Addressing the launch of the Bahamas sustainable investment program at the United Nations Climate Change Conference (COP 28), Davis said Nassau is working with other small island nations to fight for carbon emissions reductions, strengthening its ability to respond to hurricanes.
“One of our responses has been the launch of a National Youth Guard so that young Bahamians can work alongside our disaster response teams and our national security forces in dealing with the passage of storms,” he said, noting that a cruel irony is that the four massive hurricanes in under ten years have cost the country billions of dollars ‘leaving us without the fiscal space we need to get ready for the subsequent storms.
“Over a third of our national debt results from the impact of hurricanes. As well as the direct expenditure, think of the opportunity cost involved. This money could have been used to build badly needed hospitals, schools, roads, etc. It’s a kind of double-whammy”.
Davis said that topping the lists of countries most vulnerable to climate change makes borrowing more expensive.
“Every day, we are paying for the hurricanes we’ve already suffered and the ones yet to come. In addition, the designation of our nation as a high-income country leaves us unable to access fair and concessional financing,” he added, “and we desperately need financing to support our efforts in recovery and adaptation.
“So we are trapped in a cycle in which our debt-servicing obligations force under-investment in our ability to make ourselves more resilient. Friends, we urgently need new and creative climate finance solutions.
“That’s why we’re so excited about The Bahamas Sustainable Investment Programme,” he said, noting that through this initiative, the Bahamas will ” survive an era of super-charged storms by creating super-charged, win-win investment partnerships.
“Along with our strategic advisors, Resilience Capital Ventures, we will work with regional and global capital market leaders to underwrite and put in place an innovative financing facility,” he said, adding that the country aims to secure a facility of US$500 million.
“Our priorities for this fund include spending to make our infrastructure more climate-resilient, our transition to clean energy, conservation of our coastal zones, reduction in biodiversity loss, regenerative agriculture, carbon sequestration, and participation in natural asset-backed carbon credit programs.”
He said blended finance is a smart way to close the climate financing gap at a time when solutions cannot be postponed, adding” we will not despair” and remains very optimistic.
Davis said that his optimism is based on his belief that “small island nation” means “large ocean state.”
“Our country’s seagrass meadows, which cover an astonishing 97,000 square kilometers, absorb more carbon than the Amazon Rainforest. We have been mapping our seagrasses with help not only from scientists but also from tiger sharks.
“Tiger sharks are a critical part of our underwater surveying team…they swim through our waters wearing cameras and sending back data points. It’s always good to have apex predators on your side.”
Davis said the sharks would help the Bahamas become the first to issue Blue Carbon Credits.
“So, as you can see, small countries can be big pioneers. My government and the people of The Bahamas have already engaged with the Clinton Global Initiative on this Commitment to Action,” he said, urging delegates to join the initiative.
“Whether you partner with us on funding and financing or by providing technical and advisory expertise, the door for collaboration is wide open. There is, indeed, a path forward that will give my country many more tomorrows. We invite you to be part of it,” Prime Minister Davis added.
and then 