Prime Minister Philip Davis yesterday called on multilateral development banks, especially the World Bank, to improve policies that will increase funding to developing countries facing climate-related crises.
"We are urging multilateral development banks (MDBs) around the world to significantly increase the quality and quantity of their climate finance efforts," said Davis during the Climate Finance in The Americas' Panel Discussion at Atlantis Paradise Island.
"It's time for MDBs to make the necessary modifications so that they are fit for purpose."
Davis explained that MDBs already greatly finance climate mitigation and adaptation programs in developing nations, but he contended that more can be done at those institutions by "aggressively implementing the recommendations of the G20 capital adequacy frameworks review".
He said the implementation of that framework could enable concessional investments in adaptation and loss and damage.
"There is also a need for change at the most fundamental levels, beginning at the World Bank," said Davis.
"By ensuring that its financing strategy goes beyond the do no harm principle to one that also maximizes the climate benefit from every dollar it invests, the World Bank Group could unleash additional transformational climate action in developing countries.
"Too many climate-vulnerable countries do not have access to the resources they need to become more climate-resilient because of antiquated standards excluding them from concessional financing. We are forced to depend on more expensive financing that severely limits the pace at which we can adapt.
"This is unfair and ultimately harmful to everyone, as failures to reduce emissions and build resilience in the developing world will be felt the world over."
He also called on greater use of special drawing rights to provide affordable financing for "countries facing climate-driven economic challenges".
He also restated that developed nations should help developing nations by supporting debt restructuring initiatives for more favorable repayment terms.
"Many developing countries are struggling with unsustainable sovereign debt, and outsized debts are growing because extreme weather is extremely expensive," Davis said.
"Repair and recovery eat up scarce resources, and even while cleaning up after one disaster, eyes must be kept on the horizon for the next one. Yet nations servicing significant debt obligations simply do not have the fiscal space to invest in preparedness and resilience.
"In the meantime, this lack of readiness, along with climate vulnerabilities, are priced into the cost of capital so that these same investments in resilience remain impossible, out of reach. Thus many countries find themselves locked into the most vicious of cycles."
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