The Tribune

By LEANDRA ROLLE

Tribune Staff Reporter

lrolle@tribunemedia.net

THE International Monetary Fund has joined hands with The Bahamas to work on several key issues related to climate change, such as the need for additional climate financing and the monetisation of the nation’s carbon credits as an “asset class”.

The issues were discussed at a meeting held between Prime Minister Phillip “Brave” Davis and IMF Managing Director Ms Kristalina Georgieva in Sharm el-Sheikh, Egypt over the weekend.

Mr Davis is in Egypt for the 27th session of the Conference of the Parties (COP27) that officially began yesterday. He is expected to return to The Bahamas on November 13.

“The work is falling short of commitments made to those countries that are most affected by the climate crisis,” Ms Georgieva said after the high-level talks ended.

She and Mr Davis spoke in a video released by the Office of the Prime Minister yesterday.

“We have to find a way to unleash more financing for The Bahamas and all the countries like The Bahamas. Carbon offsets, carbon credits can be an asset class for The Bahamas that helps to finance adaptation to climate shocks.”

For his part, Prime Minister Davis said he was grateful for the IMF’s support of the country’s efforts to fight climate change and willingness to assist as it relates to the monetisation of the nation’s carbon credits as an asset class.

“I am very encouraged by Kristalina’s support of The Bahamas and what we’re doing and she is going to lend her voice to some of the challenges that we have had which we appreciate and we will lend our voice to some of the initiatives that they have started to create,” Mr Davis stressed.

“I’m very appreciative of the sensitivity that the IMF is showing to the challenges that small island developing states like ours have particularly this existential threat that’s upon us.

“And I’m grateful to how she is going to look into how to assist us in the monetisation of our carbon credits as an asset class and so I’m delighted that we’re able to have this meeting this afternoon to share our views, concerns and the way forward on these things.

“One thing that comes out of this meeting is that neither of us is going to give up.”

Asked if he felt the meetings were a step in the right direction, Mr Davis replied: “Well, it is and again our conversation covered debt sustainability and she has offered to look into how they factor in lost debt (incurred) by a consequence of climate change in the debt profile and how that impacts our debt sustainability.”

Ms Georgieva then briefly spoke to IMF’s latest initiatives to help support countries like The Bahamas that are vulnerable to climate change.

“We have made one step in that direction by creating first ever long-term concessional financing capacity at the IMF exactly to support countries that are vulnerable to climate shocks,” she said.

“We currently have $40 billion available to our members for 20 years maturity and 10 and a half years grace period and it is available not just to low-income countries. It is available to vulnerable middle-income countries like The Bahamas.

“Everybody who follows up this topic knows that vulnerability to climate shocks has not been accepted for criteria for concessionality until now so I’m very pleased to contribute in that way.”

To which, the prime minister replied: “For that, we are grateful.”

There are 70 people representing The Bahamas at this year’s international conference.

Among them are Attorney General Ryan Pinder, Agriculture and Family Island Affairs Minister Clay Sweeting and a number of other officials from various government agencies, including a strong youth presence.

Environment and Natural Resources Minister Vaughn Miller is not attending the conference because he will be at another event in Canada.

Meanwhile, Prime Minister Davis will address world leaders at COP27 Tuesday and Bahamians have been advised to stay tuned for his remarks.

It has been said that there will be a major announcement from him “on the future of climate change and construction in The Bahamas.”