Eclac calls on debt relief to help fight climate change

As part of the COP21 climate talks in Paris, UN regional organization Eclac has proposed debt relief to help the English-speaking Caribbean fight climate change.

The UN Economic Commission for Latin America and the Caribbean said that 10 countries of the Caribbean had public debt percentages ranging from 76% to 130% of GDP, leaving them economically and environmentally vulnerable. From 2000 to 2014, natural disasters caused US$27bn in damages in English-speaking Caribbean countries.

"The United Nations regional organization proposes the creation of a resilience fund that can be financed through instruments such as Debt Swaps for Climate Change Adaptation and Mitigation, which require interaction between multilateral institutions, donor countries and debtor countries," Eclac said in a release. "The sources of financing for this mechanism can come from the global funds for climate change."

In exchange, the Caribbean countries would commit to allotting the resources that they save on debt servicing to this resilience fund, which would managed by a solid and credible financial institution, it added.

Climate Change could be especially challenging for Caribbean nations, with their low-lying coastal areas and dependence on coastal and maritime activities. Risks from tropical storms and rising sea levels could lead to damages of up to US$22bn by 2050, according to the World Bank.

Multilateral development bank the IDB has promised to double its climate change-related financing by 2020 for the region.