11-November-2024-Editorial

IMPACT OF CLIMATE CHANGE ON SMALL ISLAND DEVELOPING STATES (SIDS)

Small Island Developing States (SIDS) are among the most vulnerable nations to climate change impacts.

Despite the establishment of a Loss and Damage Fund at COP27 in Sharm El Sheikh, climate financing for these nations remains inadequate, especially from wealthier, high-emission countries. SIDS face intensified risks, from economic losses to severe weather events, which threaten their development, livelihoods, and stability.

How Climate Change Affects SIDS

Increased Vulnerability

• SIDS experience climate-related losses 3-5 times higher relative to government revenue than other nations.
• Wealthier SIDS, like Barbados and the Bahamas, suffer losses four times greater than other high-income countries.
• Estimated costs for SIDS due to extreme weather events could reach USD 75 billion annually by 2050, especially under a 2°C warming scenario.

Direct Impacts

• Climate-induced extreme weather events damage homes, public infrastructure, and essential services.
• Cyclone Winston in 2016 caused severe flooding in Fiji, resulting in 44 deaths and significant economic disruption.

Indirect Impacts

• Recovery expenses from disasters slow economic growth and hinder sectors like tourism and agriculture.
• Fiji’s GDP growth decreased by 1.4% due to the 2016 cyclone, showcasing the economic setbacks these events bring.
• SIDS face long-term financial strain, with recovery expenses contributing to national debt. For example, Dominica’s debt-to-GDP ratio reached 150% after Hurricane Maria.

Cost of Climate Change

• Between 2000 and 2020, direct and indirect impacts cost SIDS around USD 141 billion, averaging about USD 2,000 per person.
• Some countries have faced much higher losses per capita, such as Dominica, where Hurricane Maria led to losses of USD 20,000 per person.
• Studies attribute approximately 38% of these losses directly to climate change.

Major Initiatives to Support SIDS

Alliance of Small Island States (AOSIS)

• AOSIS advocates internationally for the needs and concerns of small island nations, playing a crucial role in climate negotiations and policies.

Barbados Programme of Action

• Established in 1994 at the UN Global Conference in Barbados, this program addresses SIDS-specific vulnerabilities, including climate change, rising sea levels, and climate variability.

Small Island Developing States Accelerated Modalities of Action (SAMOA Pathway)

• Adopted in 2014, the SAMOA Pathway promotes international cooperation and climate action to address the unique challenges faced by SIDS and support sustainable development.

Coalition for Disaster Resilient Infrastructure (CDRI)

• Initiated by India in collaboration with the UN Office for Disaster Risk Reduction, the CDRI aims to strengthen infrastructure resilience in SIDS and other vulnerable regions.

Infrastructure Resilience Accelerator Fund (IRAF)

• Backed by UNDP and UNDRR, this USD 50 million fund supports disaster resilience, particularly focusing on developing countries and SIDS.

India’s Assistance to SIDS

• India has committed over USD 70 million in project aid and USD 350 million in concessional loans to support SIDS in their climate resilience and sustainable development initiatives.

Why Developed Countries Need to Provide Financial Support

Responsibility for Emissions

• Wealthy, industrialized nations, being the largest historical carbon emitters, hold a primary responsibility for financing climate adaptation and mitigation for vulnerable nations.

Current Funding Gaps

• Existing financial pledges are insufficient to address the level of loss and damage SIDS face. The loss and damage fund requires billions more each year to support vulnerable nations.

Need for a Large-Scale Response

• Similar to the post-WWII Marshall Plan, a large-scale initiative is needed to ensure SIDS receive adequate resources for recovery, adaptation, and resilience building.

Effective Use of Funds

• The loss and damage fund should focus on providing budget support for rapid recovery, particularly in agriculture and tourism, and offer concessional finance to prevent increasing national debt.

Failure to Meet Climate Commitments

• Wealthier countries have often fallen short of their climate finance and emissions reduction targets. Although SIDS contribute less than 1% of global emissions, they endure some of the worst climate impacts.
• Future funding commitments need to be ambitious enough to match the significant challenges SIDS face as climate impacts worsen.

Indirect Economic Loss and FRLD Fund

• Indirect economic losses from extreme weather events may have reached USD 107 billion from 2000 to 2022, with 36% attributed to climate change.
• The Fund for Responding to Loss and Damage (FRLD) is designed to help SIDS and other vulnerable nations manage climate-related economic losses and ensure faster recovery.

Increasing Fiscal Strain

• Combined direct and indirect losses could rise to USD 75.2 billion annually by 2050 under a 2°C warming scenario.
• Developed countries must increase their financial contributions to help SIDS cope with immediate impacts and long-term economic challenges.

Conclusion

The establishment of the Loss and Damage Fund at COP27 marks an essential step in supporting SIDS, yet wealthier nations must honor their financial commitments. Adequate funding is crucial to bolster resilience in SIDS, addressing both direct damages and the broader economic impacts of climate change, ensuring these nations can pursue sustainable development despite rising climate threats.