- Loss and Damage Research Observatory
- Loss and Damage Research Observatory
At the heart of the global climate conversation are the Small Island Developing States (SIDS), which are facing an existential threat due to the impacts of climate change. Despite contributing less than 1% to global greenhouse gas emissions, SIDS face disproportionate and devastating consequences.
IIED's most recent research paper, Sinking islands, Rising debts, shows that the rising frequency and intensity of climate-induced disasters not only threaten their environmental integrity but have devastating economic consequences.
SIDS constitute two-thirds of countries experiencing the highest relative annual losses from such events, creating a ripple effect that manifests in escalating debt. More than 40% of SIDS are nearing or already in debt distress, and an alarming 70% surpass the debt-to-GDP sustainability threshold of 40%. Six SIDS have debt-to-GDP ratios exceeding 100%.
This debt crisis impacts more than just finances; it limits investment in social services, social protection and resilience-building, exacerbating poverty and inequality. Furthermore, it hampers progress towards the Sustainable Development Goals by diverting funds to debt servicing.
For the SIDS, breaking free from this vicious cycle is not just an economic imperative but a question of survival. The interconnected challenges of climate change and debt require a concerted, multifaceted response.
To address these urgent needs, a Strategic Advisory Group (SAG) was established at COP28, tasked with guiding the creation of the Global SIDS Debt Sustainability and Investment Support Service.
The SAG is co-chaired by H.E. Prime Minister Gaston Alphonso Browne of Antigua and Barbuda and H.E. President Mohamed Muizzu of the Maldives. It includes SIDS finance and environment ministries, leading global, regional and local financial institutions and civil society organisations.
Through the concerted effort of the SAG, the Support Service design was shaped by collaborative dialogue sessions, engaging a spectrum of stakeholders in a transparent, inclusive process. The deliberative dialogues with stakeholders enabled the SAG to gather a wide range of inputs to shape an effective and actionable design for the Support Service.
The Service aims to deliver a comprehensive response combining debt sustainability, future protection, investment in resilience and legal support for SIDS.
The Global SIDS Debt Sustainability and Investment Support Service will be launched at this side event at the SIDS4 Conference.
We aim to present the design document for the Support Service, together with the plan for operationalisation of the Service.
During this side event, stakeholders will engage in panel discussions on how the service structure, governance, and financial mechanisms of the Support Service will work and how it can integrate with the SIDS' new programme of action.
4th International Conference on Small Island Developing States (SIDS4), Antigua and Barbuda
Date: 28 May 2024
Time: 1600 to 1730 HRS
Conference venue: Room 7, American University of Antigua College of Medicine, University Park, Jabberwock Beach Road, Coolidge, Antigua
A detailed presentation about the design and objectives of the Support Service– Ritu Bharadwaj, Team Leader and Principal Researcher, IIED