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In a compelling presentation titled “Climate-Proof Debt Solutions to Embrace Resilience in Developing Economies,” St. Kitts and Nevis Minister Hon. Joyelle Clarke delivered a passionate appeal for urgent reforms in global finance to safeguard small island nations from devastating cycles of debt. She emphasized that access to concessional finance, revised lending terms, and adherence to the Multi-Dimensional Vulnerability Index (MVI) are critical to preventing future debt crises and ensuring long-term financial stability for vulnerable economies.

Minister Clarke highlighted the troubling disparity in climate finance, noting, “Adaptation finance for many states is just about 0.2% of global climate finance. That’s problematic, and it’s one of the first things we need to acknowledge.” She further underscored the catastrophic economic toll that extreme weather events impose on small islands. Citing the impacts of Hurricane Irma and Maria, she stated that Barbados lost 52% of its GDP, while Dominica experienced a staggering 102% loss, making it impossible for such nations to service existing debts while recovering from disaster-related damage.

Clarke stressed that without reform, small island developing states (SIDS) will remain trapped in a vicious cycle of debt, unable to fully recover from climate-induced losses. “We have to reframe how we think about the burden of debt for states and appreciate that small islands, like St. Kitts and Nevis, do not qualify for overseas development aid or transitional financing,” Clarke remarked.

Her advocacy for climate-proof debt solutions centers on creating financing mechanisms that are tailored to the unique vulnerabilities of SIDS. This includes investments in loss and damage resources, concessional lending terms that account for climate risks, and full integration of the MVI into global finance frameworks.

Minister Clarke’s powerful call to action echoes the growing recognition that small island nations, though responsible for a fraction of global emissions, are disproportionately affected by climate change. Her presentation serves as a clarion call for the international community to prioritize resilience and ensure that climate finance is truly “fit for purpose” for the world’s most vulnerable economies.