Developed nations pledge $100 billion in SDRs in Paris
June 28, 2023
Last week’s Summit for a New Global Financing Pact in Paris, convened by President Emmanuel Macron and Barbados Prime Minister Mia Mottley, made some progress on a few key issues — particularly on special drawing rights, a key demand of the Bridgetown Initiative. (Axios)
Poorer countries will receive about $100 billion through special drawing rights, a form of currency provided by the International Monetary Fund. France, Japan and the UK were among the countries pledging varying proportions of their SDRs to poorer countries, amounting to about $80bn. A further $21bn could come from the US if the White House can get agreement from Congress.
The World Bank will pause debt repayments for countries struggling with climate disaster, but only on new loans. The UK will do the same for its existing loans, but only for 12 countries in Africa and the Caribbean.
Those gathering in Paris this week agreed on central flaw of the current system: governments cannot borrow more to fight climate change if their borrowing makes them more vulnerable to a threat they haven't caused, and their debt cannot be rescheduled without China and private creditors at the table. (Reuters)
But the summit fell short of delivering a the comprehensive debt forgiveness plan sought by some nations grappling with a mounting debt crisis, and left critics unsatisfied, reports the Guardian. At least 52 countries are currently in debt distress, unable or close to unable to service their debts, driven higher by rising interest rates and a strong dollar.
And participants stopped short of a deal to create a tax on greenhouse gas emissions produced from international shipping, reports Al Jazeera.
Mottley’s adviser Avinash Persaud, told journalists that whether it was a success or not depends on what you compare it to. If you compare it to reformers’ ambition, then it fell short. But if, a year ago, you’d told people that these conversations would be happening, they would have asked what you were smoking, he said. (Climate Home News)
More Climate Finance
Developing countries need access to climate finance that is not tied to their currencies. This is because currency fluctuations can make it difficult for them to repay loans, which can discourage investment in green projects. If currency risk fears can be allayed, then developing countries will be able to access more climate finance and accelerate their transition to a green economy, argues Avinash Persaud in Context.
The Caribbean plays a vital role in uniting global communities and leading innovative finance solutions for climate change, stated Simon Stiell, the Executive Secretary of UNFCCC at the Annual Meeting of the Board of Governors of the Caribbean Development Bank. Developing nations require about six trillion dollars for their 2050 climate goals. Stiell emphasized the need for proactive collaboration and advocacy to bridge the gap between North and South.
Economics and Finance
Geopolitical rivalry between the United States and China has complicated Suriname’s efforts to receive financial relief, in the midst of recession, inflation and insurmountable debt — a situation affecting a growing number of nations, reports the New York Times.
Caribbean governments and investors must urgently address the climate crisis in the region, which remains highly vulnerable to climate disasters. Despite the urgent need for climate financing, the Caribbean has received limited private investment in this area. Immediate action is required to address this pressing issue, highlights a post by IMF Blog.
A new ODI report explores the relationship between oil and gas dependency and a country’s debt burden, where repayments are reliant on fossil fuel revenues to secure long-term prosperity.
The Caribbean Development Bank (CDB) has been awarded USD $2.7 billion in funding from the Multilateral Development Banks Challenge Fund, a joint initiative of the Bill & Melinda Gates Foundation, Open Society Foundations, and The Rockefeller Foundation, that aims to increase efficiency and innovation in the world's development finance system.
Gender
Six young Jamaican women have advanced to the next stage of Envisioning Resilience, a program that equips women with visual storytelling skills to inform the National Adaptation Plan policymakers about the gendered impacts of climate change and their visions of resilience.
Climate and Environmental Justice
The Dominican Republic is highly vulnerable to the impacts of climate change, including more frequent and intense hurricanes, rising sea levels, and droughts. This is causing significant loss and damage to the country's infrastructure, agriculture, and tourism. In order to address these challenges, the Dominican Republic needs to fill information gaps, improve disaster risk management, and increase access to funds, Climate Tracker reports.
Rocky Point is Jamaica's largest fishing community, but decades of environmental neglect, mismanagement, and poor fishing practices have pushed many fishermen into destitution. The establishment of a sanctuary in the Pedro Bank, a marine protected area off the coast of Jamaica, is expected to boost fish stocks and provide a more sustainable livelihood for fishermen in Rocky Point, according to Inter Press Service news agency.
The Contentious Administrative Court of San Andrés, Providencia, and Santa Catalina protected collective rights to a healthy environment. It ordered the Nation and the Ministry of Defense to refrain from constructing in the coastal area of Old Town in Providencia due to the severe environmental impacts, reports El Isleño.
Guyana's oil sector is extractivism, not investment, argued international lawyer Melinda Janki, in a recent interview. She criticized oil companies for disregarding sector regulations and emphasized the importance of citizens' rights to determine industry management. (Kaieteur News)
Development
The SIDS Ministerial Conference on Noncommunicable Diseases and Mental Health in Bridgetown, Barbados reaffirmed SIDS member countries' commitment to the Sustainable Development Goals and recognized the disproportionate burden of NCDs and mental health on SIDS.
LGTBQ
‘My transgender mother is a wonderful woman!’, piece published by Erasing 76 Crimes, written by Haitian Moïse Manoël-Florisse.
Human Rights
UNICEF urged the Jamaican Government to reconsider its proposed amendment to the Child Care and Protection Act which would require children convicted of murder to serve a mandatory sentence of 20 years in prison before becoming eligible for parole.
Edna Bonhomme pushes back against the Haitian “poverty narrative” in Esquire. “It is not a matter of inherent or seamless violence but what it means to live in a country where people have been left to fend for themselves. In other words, people don’t want charity or to be labeled perennially poor; they want meaning and autonomy over their lives.”
Culture
Jamaica-based writer Kwame McPherson won the prestigious Commonwealth Short Story Prize for the Caribbean region. (Global Voices)
Haitian-American writer Edwidge Danticat was selected to receive The PEN/Malamud Award for Excellence in the Short Story. (Repeating Islands)
“Cabrage,” which roughly translates from French as a rodeo on wheels, is banned in Martinique, “but that hasn’t stopped locals from developing a vibrant culture around the motorcycles, scooters and other vehicles they use to navigate the island, which has limited public transportation,” reports the New York Times.
The Caribbean and the World
“Revelations” regarding Chinese “spy facilities” in Cuba, have the hallmarks of a classic conservative ploy to derail efforts to reduce tensions with U.S. foreign adversaries, argues William LeoGrande in Responsible Statecraft. “This is not the first time Cuba has been caught up in such machinations by battling factions in Washington’s foreign policy establishment.”
Cuba said it is reaffirming its alliance with Russia through a series of agreements considered key for the island, including on the supply of oil, the sale of wheat and the resumption of flights between both countries, reports the Associated Press.
Chinese President Xi Jinping met with Prime Minister of Barbados Mia Amor Mottley in Beijing. Mottley thanked China for the valuable assistance it provided to Barbados during the COVID-19 pandemic and for its development. (Telesur)
Human rights advocate Christopher Arif Bulkan, was elected as a Commissioner on the Inter-American Commission on Human Rights the first time a Guyanese national will serve on the IACHR. (News Room)
Events
28 June — Covering Climate and Health — 4-day virtual workshop series organized by the Media Institute of the Caribbean — Register
29 June — Rights of Future Generations: From the ICJ Climate Case to the UN Summit of the Future. A diplomatic round-table hosted by Normandy Chair for Peace and the Permanent Missions of Vanuatu and Costa Rica to the UN. Register
23 - 27 October: Latin America and the Caribbean Climate Week 2023 is accepting applications for Side Events and the Action Hub in Panama City. FAQs
Opportunities
Apply — Global Climate Fund — Applicants between the ages of 13-27 who are interested in Climate Advocacy, Climate Change, Health, and Food Security can submit their proposals on one of the three thematic areas: Climate Change and Human Health, Climate Change, Water Conservation, and Food Security, or Solid Waste Management and Climate Change. — The Hey Campaign
Climate Tracker is searching for 4 journalists from the Caribbean region to join is COP28 team. It offers an opportunity to cover the climate story while amplifying the perspectives of the Caribbean. Additional info here
The Journal of Caribbean Environmental Sciences and Renewable Energy (CESaRE) offers a position to write for the upcoming special Issue of CESaRE Impcats. Apply
Human Rights Internship — UNICEF —Duration: 28 August 2023—30 November 2023 More info here
Climate Change Media Partnership Reporting Fellowships to COP28 UAE Applications are being accepted from journalists interested in covering the 28th United Nations Climate Change Conference of the Parties (COP28). Apply here.