The Tribune

By KHRISNA RUSSELL

Tribune Chief Reporter

krussell@tribunemedia.net

AFTER Bahamian representatives at COP26 insisted that using gross domestic product was not a realistic means in determining countries’ need for financial assistance following natural disasters, the Global Environment Facility has indicated the decision to move away from using GDP as the primary economic indicator.

Prime Minister Philip “Brave” Davis made the remark in Parliament yesterday when he provided the nation with an overview of gains made at the United Nations climate change conference. It was held in Glasgow last October.

Mr Davis called this a “major win” for the country.

“Every country’s economy is vulnerable to environmental shocks,” Mr Davis said. “In recent years, our annual hurricane season has demonstrated the extent of that vulnerability.

“However, Hurricane Dorian, unprecedented in its size, duration and ferocity, showed how these single events could completely cripple our country. Against this backdrop, the use of GDP to determine the level of financial assistance offered to our country is not reasonable.

“Therefore, our delegation consistently made interventions throughout COP26 that drew attention to this stark reality.

“We forcefully drove home this argument in discussions with the Global Environment Facility, a significant financial donor for environmental programmes. I am thrilled to report that at the recent global meeting of countries in January, the Global Environment Facility indicated that they would be moving away from using GDP as the primary economic indicator.

“Currently, the funding available to The Bahamas through the Global Environment Facility for 2022-2023 is approximately $7m. The Global Environment Facility is now proposing to use two indices: an economic and environmental vulnerability index or EVI and a human development index or HDI. EVI indicators would capture economic and environmental shocks, while HDI indicators would consider the country’s health and living standards.

“This is a major win for The Bahamas and other Caribbean small island developing states or SIDS. These new indicators are better suited to convey our countries’ realities and are likely to increase the mobilisation of climate finance. This change will also aid in amplifying the continued efforts of SIDS to move toward the much-needed multi-dimensional vulnerability index or MVI.

“Most SIDS are considered middle or high- income countries and are currently ineligible for concessional financing due to the present GDP income classification. This change will help secure the much-needed financial support to address the adverse impacts of climate change.”

Mr Davis said officials also met with representatives of the Green Climate Fund to discuss financial support for matters relating to health and building a sustainable resilient infrastructure. The Bahamas is presently conducting a Green Climate Fund health-readiness project, managed by the Ministry of Health and Wellness, with a capital value of approximately $800,000, Mr Davis said.

Once completed, The Bahamas would be ready to develop and submit a complete health project to address the healthcare infrastructure needs within the country, which is estimated to cost approximately $300m, he said.