41 st Annual Meeting of the Board of Governors of the CDB

1. U Trotz - Caribbean Community Climate Change Centre 41st Annual Meeting of the Board of Governors of the CDB Unlocking Climate Finance; Opportunities and Constraints Trinidad & Tobago June 25th 2011

2. U Trotz LILLIENDALL DECLARATION • WE Declare: • 1. That all Parties to the UNFCCC should work with an increased sense of urgency and purpose towards arriving at an ambitious and comprehensive agreement at the COP 15 in Copenhagen in 2009 which provides for: long-term stabilisation of atmospheric greenhouse gas concentrations at levels which will ensure that global average surface temperature increases will be limited to well below 1.5° C of pre-industrial levels; that global greenhouse gas emissions should peak by 2015; global Co2 reductions of at least 45 percent by 2020 and reducing greenhouse gas emissions by more than 95 per cent of 1990 CO2 levels by 2050;

3. U Trotz LILLIENDALL DECLARATION • 2. Adaptation and capacity building must be prioritised and a formal and well financed framework established within and outside of the Convention, including the multi-window insurance facility, to address the immediate and urgent, as well as long term, adaptation needs of vulnerable countries, particularly the SIDS and the LDCs; • 3. The need for financial support to SIDS to enhance their capacities to respond to the challenges brought on by climate change and to access the technologies that will be required to undertake needed mitigation actions and to adapt to the adverse impacts of climate change;

4. U Trotz LILLIENDALL DECLARATION • 6. Our recognition of the value and potential of standing forest, including pristine rainforest, and our affirmation of its potential contribution to Reduced Emissions from Deforestation and Degradation (REDD). Forest conservation or avoided deforestation and sustainable management of forests are important mitigation tools against climate change in a post 2012 Agreement. We also support the approach to harmonizing climate change mitigation and economic development as proposed by Guyana in its Low Carbon Development Strategy;

5. U Trotz LILLIENDALL DECLARATION • 7. Strong determination to overcome technical, economic and policy barriers to facilitate the development, diffusion and deployment of appropriate and affordable low- and zero-emission technologies and renewable energy services; We also recognise the need for energy efficiency and conservation and the need for increased technical and financial support for the development of renewable energy in the Caribbean;

6. U Trotz REGIONAL STRATEGIC FRAMEWORK • This framework is comprised of five key strategies and associated goals designed to significantly increase the resilience of the CARICOM economies: • 1. Mainstreaming climate change adaptation strategies into the sustainable development agendas of CARICOM states. • 2. Promote the implementation of specific adaptation measures to address key vulnerabilities in the region. .

7. U Trotz REGIONAL STRATEGIC FRAMEWORK • 3. Promoting actions to reduce greenhouse gas emissions through energy efficiency, conservation, and switching to renewable energy sources. • 4. Encouraging action to reduce the vulnerability of natural and human systems in CARICOM countries to the impacts of a changing climate. • 5. Promoting action to derive social, economic, and environmental benefits through the prudent management of standing forests in CARICOM countries

8. U Trotz IMPLEMENTATION PLAN • Centre mandated to coordinate regional process to develop an IP for the Regional Strategy. • Process has involved series of national consultations with wide range of stakeholders aimed at determining actions to be reflected in the IP • The implementation Plan: • Covers the period 2011 to 2021. • Identifies priority activities under each strategic element and goal area of the Regional Framework.

9. U Trotz IMPLEMENTATION PLAN • Identifies capital and revenue costs for each of the actions in consultation with the implementing organisations. Indicative costs have been provided where actions require further scoping and design. • Allocates responsibilities and outlines functional co-operation between regional and national agencies. • Provides the basis for investment programming for national budgets and in discussions on funding priorities with the international donor community.

10. U Trotz IMPLEMENTATION PLAN • Considers governance and institutional capacity. • Identifies the essential actions required to de-risk the Caribbean and open up the private sector investment streams that are a key element of the Copenhagen Accord. • Proposes a monitoring and evaluation process to provide transparency, donor confidence, and an evidence base on which to refine and improve the Regional Framework and the Implementation Plan.

11. U Trotz EMERGING THEMES IN IP • Building resilience requires transformational change • Building a low carbon climate resilient or a green economy is an integral element of the wider sustainable development agenda • Caribbean governments and organisations have to step up to the plate. • Acting regionally to deliver nationally. • Effective partnerships with donors and international financial institutions (IFIs) are critical.

12. U Trotz EMERGING THEMES IN IP • Governments must address the private sector risk reward balance in order to access the full range of funding opportunities. • Low-carbon energy generation has to become part of the ‘DNA’ of the Caribbean. • Uncertainty is not a reason for inaction. • Risk management processes are essential to effective decision-making • Data and information is a public good • We must not lose the information, knowledge and expertise we already have. • The challenges ahead may be far greater than we are currently planning for.

13. U Trotz SUPPORTING IMPLEMENTATION • Implementation Plan calls for • Developing a risk management ethic in decision making • Creating a favourable investment environment in the Caribbean. • Accessing finance to support: • Low Carbon development pathway for the region – energy efficiency, renewable energy, establishing Carbon market. • Climate resilient development - Adaptation

14. U Trotz Developing a risk management ethic in decision making • The Regional Framework is founded upon the principle of using risk management processes and tools to aid decision-making • Decision-making based on subjective value judgements without using the information and the expert advice and guidance that is available, given the challenges and uncertainties we face, will compromise resilience building • There is a CARICOM approach to using climate risk management developed by the CCCCC.

15. U Trotz Developing a risk management ethic in decision making • The CARICOM Climate Risk Management Framework should be revised to take into account the latest developments in climate risk management techniques. • An on-line version should be developed with full guidance and links to other tools and techniques. • The revised risk management framework must be supported by a comprehensive training programme for decision-makers across all stakeholders.

16. U Trotz Developing a risk management ethic in decision making • CDB to endorse the development of a revised climate risk management framework, provide funding and promote its use in all decision making. • A standard ‘stress-test’ process and guidance based on the revised Caribbean Risk Management Framework should be developed by the CCCCC. All organisations operating at regional and national levels should ‘stress-test’ decisions against the potential impacts of a changing climate

17. U Trotz Financial and Technical Assistance • The CCCCC working with the CDB should develop a technical support facility to advise regional organisations and national governments on the funding opportunities, matching projects with funds and preparing funding applications. • Explore the potential benefits of the CDB acting as a Regional Implementing Entity for the Adaptation Fund.

18. U Trotz Financial and Technical Assistance • CDB working with the CARICOM member states should develop a region-wide position on the most effective and equitable funding mechanisms and engage with donors and IFIs on the basis of country-led needs assessments and processes. • The Caribbean Development Bank can play an instrumental role working with the donors and IFIs to develop a regional funding mechanism.

19. U Trotz Facilitating Private Sector Investment • CDB to work with national government ministries with responsibilities for finance and economic development to: • Assess and review the risk profiles for each CARICOM member state in partnership with the private sector (operating at national, regional and international levels) • Identify and implement a 5 year transformational programme to deliver the actions needed to improve the risk balance in each country and attract private sector investment.

20. U Trotz Adaptation Projects • CDB to work with CCCCC to identify a series of impact risk assessments focussing on those sectors identified in the Regional Framework. Examples would include critical infrastructure assets: • Ports and harbours, Airports, Drinking water and waste water treatment assets, Energy Agriculture, Tourism, Health • CDB to provide funding to commission impact risk assessments, identify risk management options and develop guidance for new projects.

21. U Trotz Internalising climate change into bank lending decisions • CDB to • follow IFC approach and recognise climate change as a cross-cutting theme to be integrated within internal lending risk processes. • require that project sponsors submit a risk assessment of the impacts of climate change on a proposed project during the project’s life. Undertake an assessment of the CDB’s current investment portfolio to identify potential impacts. • work with commercial banks operating in the Caribbean to adopt similar best practice approach to integration of climate change into decision-making.

22. U Trotz THANK YOU