President Ali announces financial support for Caribbean climate adaptation

US$5M to be injected into Regional Adaptation Fund

Recognising that the Caribbean Community (CARICOM) is extremely vulnerable to the adverse effects of climate change, Chairman of CARICOM, President Dr Mohamed Irfaan Ali has announced a US$2 million financing towards the Regional Adaption Fund.

Speaking at an event to mark the opening of the 46th Regular Meeting of the Conference of Heads of Government of CARICOM Sunday afternoon, President Ali reiterated the country’s commitment to the Bridgetown Initiative.

President Dr Mohamed Irfaan Ali

The Bridgetown Initiative, piloted by Barbados’ Prime Minister Mia Amort Motley calls for the overhaul of the current global financial system led by the IMF and the World Bank to enable mobilisation of more private financing for the climate transition and improved resilience in vulnerable countries.

According to the head of state, Guyana strongly supports the initiative and will be taking responsibility on its own to invest in the region’s climate resilience.

“To this end, I want to say that to support these adaption efforts of the region, Guyana is committing US$2 million out of our revenue earned from the sale of our Carbon Credits as part of our LCDS (Low Carbon Development Strategy) to the regional adaptation fund,” the Guyanese President announced at the National Culture Centre (NCC).

Additionally, oil giant Exxon Mobil’s Global Trust Fund has committed another US$3 million for sustainable projects, to build resilience and improve productivity within the region, including food security.

“With this support, the Regional Adaptation Fund will have an investment of US$5 million to start with,” the CARICOM chair further disclosed.

The CARICOM Chair and Canada’s Minister of International Development Ahmed Hussen have also agreed on the importance of ramping up access to climate financing at scale and using an efficient mechanism to accomplish the mission.

“And in saying this, I reminded the minister that there is a substantial commitment that was made to heads at the Canada-CARICOM summit and we are now looking in the coming weeks to activate that commitment, to have those funds disbursed and ready to support the region’s adaption and resilience strategy,” he further stated.

The Carbon Credit fund, the Guyanese President referred to, is the US$750 million monumental agreement with global energy giant – Hess Corporation – which will see the company purchasing 2.5 million carbon credits annually.

CARICOM Chair, and Guyana’s President, Dr Mohamed Irfaan Ali, and other CARICOM Heads of Government at Sunday’s opening ceremony

In 2023, Guyana received its first payment of US$150 million with 15 per cent (US$22.5M) disbursed to 242 Amerindian, riverine, and remote communities across Guyana, leading to the implementation of 811 economic and social projects.

The remaining 85 per cent of the payment will fund climate adaptation measures. Guyana has already received $37.5 million in carbon credit payments, with another $50 million expected later in the year

Climate resilience is one of several pressing issues that will be discussed at the conference that will be hosted at the Guyana Marriott Hotel, in Kingston, Georgetown. Other critical areas include energy security, food security, regional transportation, regional security, including the situation in Haiti, and border issues, among others.

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