GOJ commissioned report found Jamaica's Climate Public Investment Assessment wanting.

The Government of recently commissioned the International Monetary Fund (I.M.F) to conduct an assessment of the country's Climate Public Investment Management Assessment (C-PIMA). Below I delve into a synopsis of the report and the recommendations, but as you read, it is important for you to understand the context in which the study was commissioned and the significance of the impact of climate change on the fiscal stability that Jamaica currently enjoys.

Context of the Report:

Climate change is not only an environmental challenge but also poses significant fiscal vulnerability to countries around the world. The impacts of climate change, such as extreme weather events and rising sea levels, can result in significant economic losses and strain government budgets. This is particularly true for small island states like Jamaica, which are highly vulnerable to climate change hazards.

Jamaica is highly exposed to multiple natural hazards, including tropical cyclones, floods, and droughts. Jamaica ranks 47th out of 191 countries in the 2023 Inform Risk index. In light of this, Jamaica has recognized the importance of incorporating climate change considerations into its fiscal planning and investment management processes.

Climate risks and natural disasters pose major threats to Jamaica’s public infrastructure and there is considerable scope to strengthen climate-responsive public investment. Progress has been made in the development of a comprehensive climate change policy framework and in planning for disaster risk financing. But coordination across the central government and with municipal corporations is weak with no institution positioned strategically to lead either adaptation or mitigation related investments.

Jamaica’s high vulnerability to natural disasters poses substantial risk to the country’s economic outlook. Jamaica has suffered high and sustained damages from natural disasters over the past several decades. Hydrometeorological events (floods, tropical storms, hurricanes etc.) have been the most prominent hazards in Jamaica.

Hurricanes Ivan (2004) and Dean (2007) caused damages of US$580 million and US$329 million each (or 8 and 3 percent of GDP, respectively). In 2010, tropical storm Nicole was an important reminder of a persisting vulnerability to natural disasters, causing damages of US$239 million (or 2 percent of GDP). Looking ahead, the expected damages from the hydrometeorological events would also be significant.

To address the precarious situation that the country finds itself, the government has undertaken a Public Investment Management Assessment (PIMA) to evaluate its climate-related public investment management practices.

The report notes that:

- The tourism sector in Jamaica is highly sensitive to the effects of climate change, and climate-oriented infrastructure spending is not tracked or reviewed for climate outcomes.

- Jamaica contributes less than 0.03 percent of total greenhouse gas emissions, but it is expected to experience more climate hazards such as heatwaves, irregular rainfalls, and stronger tropical cyclones.

- The legal framework for climate change in Jamaica is examined, and recommendations are made to strengthen climate change strategic guidance and project appraisal methodologies.

- The report suggests improving the climate informed fiscal and budget framework, increasing renewable electricity generation, and revising the framework for private and public bodies participation in climate smart infrastructure.

Deficiencies in Jamaica's (PIMA) framework

The assessment highlights several areas where Jamaica can improve its climate change arrangements for investment projects. The key deficiencies highlighted in the public policy framework are:

1. Weak coordination across the central government and with municipal corporations, with no strategic institution leading adaptation or mitigation-related investments.

2. The tourism sector, which is highly sensitive to the effects of climate change, does not track climate-oriented infrastructure spending or conduct ex-post reviews or external audits of projects' climate outcomes.

3. Climate impact is not integrated into public asset management, and climate-related analysis is not conducted for individual public bodies contributing to the Nationally Determined Contribution.

4. The Public-Private Partnership (PPP) framework lacks a framework for allocating climate risks between the government and PPP partners, and climate-related analysis is not integrated into project selection procedures.

5. The legal framework and staff capacity are not fully supportive of climate change public investment management reforms.

6. There is a lack of transparency on green and resilient investment projects in budget documentation.

Recommendations to improve climate-related public investment management.

1. Strengthen the climate change strategic guidance of planning for capital budgeting.

2. Develop climate change project appraisal and selection methodologies and apply them consistently to all projects, regardless of financing source.

3. Develop a climate smart asset register and ensure adequate funding for maintenance of assets.

4. Improve the climate informed medium-term fiscal and budget framework to guide budget preparation.

5. Revise the framework for private and public bodies participation in climate smart infrastructure.

6. Introduce climate change arrangements for the ex-post evaluation of investment projects.

7. Ensure that the legal framework and staff capacity are supportive of climate change PIM reforms.

8. Enhance transparency on green and resilient investment projects in budget documentation.

By taking these steps, Jamaica aims to enhance its resilience to climate change and minimize the fiscal impacts of climate-related risks. It is relevant to note that the government is attempting to be proactive in the commissioning of this study. All eyes now will be on the implementation of the recommendations.

The report is a technical assistance assessment of Jamaica's climate public investment management (C-PIMA) processes conducted by the I.M.F.

Please note that these are just some of the recommendations mentioned in the document. For a comprehensive list, it is best to refer to the C-PIMA assessment report.