Project profile — CARICOM Climate Adaptation Fund

• Dominica (9.50%)
• Saint Lucia (15.80%)
• Belize (5.40%)
• Jamaica (24.70%)
• Antigua and Barbuda (7.40%)
• Suriname (5.40%)
• Saint Vincent And The Grenadines (5.40%)
• Grenada (10.00%)
• Guyana (5.40%)

• West Indies, regional (11.00%)

• Government And Civil Society, General: Public finance management (15111) (10.00%)
• Other Multisector: Disaster Risk Reduction (43060) (90.00%)

• Gender equality (significant objective)
• Environmental sustainability (cross-cutting) (significant objective)
• Climate Change Adaptation (principal objective)
• Disaster Risk Reduction(DRR) (principal objective)

This fund contributes to insulating Caribbean Community (CARICOM) member countries from disaster risks and frees up fiscal space to support their essential needs, which have increased due to the COVID-19 pandemic. The Fund consists of two components. The first enhances post-disaster response through the coverage of premiums to the Caribbean Catastrophe Risk Insurance Facility for the nine CARICOM member countries eligible for Official Development Assistance for a two years. The second component assists in developing gender-sensitive innovative financing instruments to mobilize private capital for climate adaptation and disaster mitigation to benefit all CARICOM members.

The expected outcomes for this project include: (1) covering climate risks for nine CARICOM governments over two years in Antigua & Barbuda, Belize, Dominica, Grenada, Guyana, Jamaica, St. Lucia, St. Vincent and the Grenadines and Suriname; and (2) developed innovative financing instruments to catalyze private investment in climate adaptation and disaster resilience.

Results achieved as of September 2024 include: (1) covered disaster insurance premiums through the Caribbean catastrophe risk insurance facility for 7 eligible countries from June 2020 to May 2021 and June 2021 to May 2022. These countries include Antigua and Barbuda, Belize, Dominica, Grenada, Jamaica, St. Lucia, St. Vincent and the Grenadines; (2) supported ongoing engagement with Guyana and Suriname to facilitate their future membership in the insurance facility. This is possible once risk insurance products are available that to meet their specific needs; (3) provided technical assistance to identify and design financial tools to support CARICOM member states’ climate resilience; and (4) added funds to 7 countries’ Caribbean catastrophe risk insurance facility tropical cyclone and excess rainfall insurance policies. As a part of the agreement, a portion of insurance payouts go to individuals impacted by the disaster. In response to Hurricane Beryl (July 2024), these top-ups increased the total insurance payouts received by Grenada, Jamaica, St. Vincent and the Grenadines by approximately $7.7 million, increasing the funds available to provide critical support to the most impacted people.

• Proactive disclosure