Small Island Developing States (SIDS) stand on the front lines of climate change, facing unprecedented challenges that threaten their sustainability and very existence. These nations are particularly vulnerable due to their geographical and climatic conditions, which expose them to severe weather events, rising sea levels, and other environmental impacts that jeopardize their economies, ecosystems, and communities. Climate risks and fiscal risks are closely related, as the costs of recovery and adaptation can strain limited resources, leading to increased debt and economic instability.
The financial sector plays a pivotal role in addressing these vulnerabilities. It has the power to drive significant change by allocating resources, shaping investment strategies, and fostering innovative financial solutions tailored to the unique needs of SIDS. The sector’s involvement is crucial for implementing climate adaptation and mitigation measures, ensuring sustainable development, and building economic resilience.
This side event will explore the various ways in which the financial sector is contributing to strengthen the resilience of SIDS in the face of climate change. It will provide a platform for dialogue among financial institutions, policymakers, private sector representatives, and community leaders from SIDS. The session aims to highlight successful case studies, discuss current challenges, and identify actionable strategies for enhancing financial resilience and support for SIDS in their battle against the impacts of climate change.