Caribbean Outlook: Considering a Caribbean emissions trading scheme

The Caribbean Community (CARICOM) member States are highly vulnerable to climate change. This vulnerability has been further exacerbated by their large debt burden, high debt servicing costs and limited fiscal space which limit the domestic financial resources available to adequately address climate change (UNDP, 2009). It is noteworthy that from 2000 and 2019 the Caribbean Community produced between 0.11 and 0.16% of global emissions (World Bank, 2023). However, despite being only minor emitters these countries find themselves on the sharp end of the impact of climate change, being increasingly vulnerable to floods, droughts, rising temperatures, rising sea-levels, hurricanes and coral bleaching etc. Furthermore, CARICOM member States2 have submitted their nationally determined contributions (NDCs) to the United Nations Framework Convention for Climate Change (UNFCCC). Whilst the Caribbean has received some measure of grant funding in support of the implementation of NDCs, the financing being offered in this regard has largely been in the form of loans, thereby leaving the subregion lagging behind in the receipt of concessionary support for its climate change adaptation and mitigation needs (Mohan, 2022).