Caribbean Resilience Finance Day 2024

The Caribbean Resilience Finance Day was a virtual conference that took place on October 11th 2024 aimed at strengthening climate resilience across the Caribbean’s financial sector and for vulnerable populations. Bringing together regional and international leaders, policymakers, and financial institutions, the event explored innovative solutions, successful strategies, and collaborative opportunities for financing adaptation and resilience in the region. The conference aimed to foster the resilience finance ecosystem in the Caribbean, share knowledge, and inspire participants to action.

October 11, 2024
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KEY TAKEAWAYS

Resilience Is Economically Justifiable And Market-Driven

The data and insights presented make a strong case that resilience investments offer significant economic benefits, are financially viable, and can open new market opportunities for the Caribbean.

Digital Transformation Is Essential But Needs Support

Digital tools are game-changers for resilience, but their full potential is only achievable with expanded digital infrastructure, literacy programs, and support for digital finance solutions.

Resilience Finance Needs Inclusivity And Accessibility

Traditional finance models do not adequately serve vulnerable groups. Developing resilience finance requires inclusive approaches that ensure MSMEs, smallholder farmers, and rural communities can access financial products tailored to their needs.

Collaboration Is Key To Success

Resilience finance is a complex field that requires the combined efforts of governments, financial institutions, and communities. Collaboration builds trust, shares risks, and ensures that adaptation strategies are both sustainable and impactful.

Capacity Building And Data-Driven Decisions

Financial institutions and stakeholders must strengthen their capacity to perform climate risk assessments, leverage digital tools, and understand adaptation’s broad economic impacts. Evidence-based decision-making will enable the Caribbean to attract the investments needed to build a more resilient future.

Panel Discussion
10:15 am - 11:00 am

Unlocking Opportunities: Key Regulatory and Investments Dynamics in Adaptation and Resilience Finance for the Caribbean

The opening panel of the Caribbean Resilience Finance Day united regional and international experts from the climate, policy, regulation, and the financial sectors to discuss the political and regulatory frameworks shaping adaptation and resilience finance in the Caribbean. The conversation explored how global best practices and standards can be tailored to the region, and highlighted local perspectives on building a strong investment environment for Caribbean adaptation and resilience finance.

Key Takeaways

  • Importance of Tailored Financial Solutions

    Effective adaptation finance in the Caribbean must be tailored to the specific needs of each country, recognizing the region’s diversity and unique challenges. Climate adaptation requires localized approaches that engage local communities and consider cultural relevance.

  • Barriers to Accessing Climate FinanceMany international climate finance mechanisms don’t align with the scale and capabilities of Caribbean countries, creating a “mismatch” that limits access. Climate funds financing models must be adaptable to smaller nations with limited project scope and resources.

    Many international climate finance mechanisms don’t align with the scale and capabilities of Caribbean countries, creating a “mismatch” that limits access. Climate funds financing models must be adaptable to smaller nations with limited project scope and resources.

  • Collaboration and Capacity Building

    Partnerships among local governments, DFIs, private sectors, and MDBs are critical. Capacity-building initiatives, especially around policy-making and financial management, are essential for Caribbean countries to effectively mobilize and deploy adaptation funds.

  • Need for Flexibility in Financial Policies

    Climate change’s unpredictability demands that funding mechanisms and financial policies be flexible and responsive. Static policies and outdated best practices hinder the Caribbean’s ability to adapt, so financial institutions need adaptable frameworks to respond to real-time climate conditions.

  • De-Risking Investments

    Concessional financing and de-risking mechanisms are vital to attract private sector investment in high-risk climate adaptation projects. Offering grant funding or low-interest loans for initial project stages can reduce financial barriers, making climate-resilient projects more viable and attractive to investors.

SPEAKERS AND MENTORS

Moderator
Mr. Anton Edmunds

General Manager Caribbean Country Department / Country Representative Jamaica. Inter American Development Bank

Speaker
Ms. Andrea Rodriguez Osuna

Climate Finance Advisor for the Euroclima + program Gesellschaft für Internationale Zusammenarbeit (GIZ)

Speaker
Dr. Mohammad R. Nagdee

Executive Director Caribbean Centre for Renewable Energy and Energy Efficiency

Speaker
Mr. Henry N. Anderson

CEO Development Finance Corporation of Belize

Speaker
Mr. L. O'Reilly Lewis

Acting Director of the Projects Department Caribbean Development Bank

Focus Talk
11:15 am - 12:00 pm

Overcoming Barriers Along the Financial Value Chain for a Climate-Resilient Caribbean

This session brought together two perspectives within the financial value chain: sustainability consultants and EcoMicro x Scale for Resilience partner financial institutions. Speakers shared practical insights and approaches they developed in implementing climate-resilient strategies and green financing, offering valuable lessons for the broader financial sector in overcoming current barriers and advancing climate resilience in the region.

Key Takeaways

  • Inclusive Financing Models

    Serving vulnerable populations—such as low-income households and MSMEs—requires credit assessment models beyond traditional banking. Techniques like character-based lending, cash-flow analysis, and partnerships with technical providers can make adaptation financing more inclusive and accessible.

  • Need for Concessional Funding

    Across the panel, there was consensus that fully commercial financing is insufficient to meet adaptation needs, particularly in the Caribbean where vulnerability to climate impacts is high. Concessional financing and grants are necessary to support resilience efforts at a scale that’s both sustainable and affordable.

  • Strengthening Institutional Knowledge

    Financial institutions need access to technical knowledge about green technologies and climate risks to assess and manage climate-smart projects effectively. Partnerships with engineering firms, tech providers, and knowledge networks can help bridge this knowledge gap.

  • Importance of Policy and Regulatory Support

    Financial regulators have a significant role in enabling climate-smart lending by establishing green taxonomies, climate risk guidelines, and incentives. Central banks can lead in creating supportive frameworks that encourage financial institutions to invest in adaptation and resilience.

  • Role of Insurance in Resilience Financing

    Insurance can support resilience by mitigating risk for renewable energy and adaptation projects. However, in smaller economies, high premiums and limited reinsurance options present challenges. Regional collaboration could help address these barriers by pooling risk and standardizing insurance solutions across the Caribbean.

SPEAKERS AND MENTORS

Moderator
Ms. Olusola Ikuforiji

Program Manager & Climate Change Specialist Global Environment Facility

Speaker
Mr. Pavol Vajda

Senior Consultant Green Max Capital Group

Speaker
Ms. Natasha Joseph

Business Support and Development Officer Grenada Development Bank

Manager Central Finance Facility of Trinidad & Tobago
Mr. Michael Gordon

Focus Talk
12:15 am - 1:00 pm

Harnessing Digital Tools for Resilience Finance

This session explored how digital tools and data are transforming resilience finance in emerging economies. From leveraging climate data to predicting risks, to digitizing operations and utilizing AI for smarter investment strategies, the discussion focused on how Caribbean financial institutions can implement these technologies to enhance climate finance outcomes and build forward-looking resilience strategies.

Key Takeaways

  • Enhanced Risk Assessment with Digital Tools

    Digital technology, including geospatial data and AI, offers granular insights into climate risks by location, enabling banks to assess risk precisely and develop location-specific solutions. This targeted approach supports informed decision-making, especially in high-risk sectors like agriculture.

  • Building Digital Infrastructure and Literacy

    Effective digitalization requires mobile access, data security, and digital literacy, especially in rural or underserved regions. Collaborative efforts among governments, private sectors, and regulatory bodies are crucial to build the necessary infrastructure and support digital finance solutions.

  • Regulatory Sandboxes for Innovation

    Establishing regulatory sandboxes allows financial institutions to innovate with digital tools under flexible regulatory guidance. Countries like Kenya have used such frameworks successfully, and similar approaches could support resilience finance innovations in the Caribbean.

  • Potential for Insurance and Conditional Transfers

    Digital tools enable better design and delivery of insurance products by assessing risks accurately and supporting the creation of conditional cash transfer programs. These tools help governments and insurers provide rapid response mechanisms and protect communities facing extreme weather events.

  • Financial Inclusion Versus Financial Exclusion

    While digital tools enhance financial inclusion by reaching remote areas, they also carry the risk of financial exclusion. Disinvestment due to high climate risks could marginalize already vulnerable areas, so resilience finance strategies must balance between minimizing risk and supporting communities.

SPEAKERS AND MENTORS

Moderator
Mr. Sven Volland

Co-Founder & Head of Product YAPU Solutions

Speaker
Ms. Ana Velástegui

Project Coordinator The Climate Collective

Speaker
Mr. Panos Varangis

Global Lead for Agricultural Finance and Agricultural Insurance International Finance Corporation

Speaker Presentations
2:00 pm - 2:45 pm

The Business Case for Resilience: Deep Dive into Successful Approaches for and from the Caribbean Region

This session explored the business case for investing in climate-resilient solutions in the Caribbean. By showcasing successful examples for and from the region, speakers delved into the economic rationale behind financing adaptive solutions, the implementation of resilience-focused financial products, and the investment strategies that support these initiatives. Participants gained practical insights into how strategic investments in resilience can drive economic, financial, and social benefits.

Key Takeaways

  • Strong Business Case for Resilience

    There is a clear business case for resilience, with research indicating that even small investments in adaptation can yield significant long-term savings. For example, IDB Invest’s findings showed that a 1-2% increase in building costs for resilience could lead to 30 times the savings.

  • Need for Collaboration, Knowledge Sharing, and PPPs

    Resilience efforts require extensive collaboration among financial institutions, governments, and local communities. Partnerships enable risk-sharing, better access to data, and the development of tailored adaptation solutions. Public investments in enabling environments—such as regulations, data access, and infrastructure—can attract private funding to resilience projects that otherwise struggle with high costs and risks.

  • Building the Resilience Market Ecosystem

    There is a growing market for resilience solutions, particularly in construction and agriculture. This market is supported by demand for resilient infrastructure, technologies, and services, and offers new opportunities for SMEs, construction firms, and local service providers.

  • Role of Science-Driven Financial Models

    Science-based frameworks that incorporate climate-smart agriculture indicators and financial analytics help financial institutions design better resilience products. These models are essential for informing both policy and private investment decisions.

  • Blended Finance and Risk Assessments as Key Tools

    Financial institutions benefit from blended finance and robust risk assessments that support climate-related financial reporting and improve investment targeting. For private companies, identifying and mitigating specific climate risks (e.g., flooding, heat) enables more strategic investment in resilience.

SPEAKERS AND MENTORS

Moderator
Mr. Tomás Ribé

Director of Investments GAWA Capital

Speaker
Mr. Carter Brandon

Senior Fellow World Resource Institute

Speaker
Ms. Malini Samtani

Advisory Officer for Climate Change IDB Invest

Speaker
Ms. Deissy Martínez-Barón

Regional Program Leader Latin American & Caribbean Alliance of Biodiversity and CIAT

Supporters

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