Why the New Collective Quantified Goal (#NCQG) is a Lifeline for Small Island Developing States

As COP29 focuses on financial matters, the Bahamian delegation continues to bring to attention the unique economic and environmental challenges faced by Small Island Developing States (SIDS) in the context of #climatechange. These distinct circumstances demand specific attention and targeted action from the international community.

The concept of SIDS was formally recognized at the 1992 Earth Summit in Rio de Janeiro. This group of 39 States and 18 Associate Members of United Nations regional commissions, scattered across the Caribbean, Atlantic, Indian, and Pacific Oceans, represents a diverse tapestry of cultures and economies. However, we are united by our unique vulnerabilities highlighted by climate change. It's a stark paradox: SIDS contribute less than 1% of global greenhouse gas emissions, yet we bear the brunt of climate change impacts. This is #climateinjustice.

Home to over 65 million people, SIDS encompass both island and coastal states that share similar economic circumstances. While the name suggests islands, the criteria for SIDS status extend beyond geography to encompass specific characteristics that amplify our susceptibility to external shocks.

So, what are some key economic vulnerabilities shared by SIDS?

• High Risk of Extreme Weather Events

SIDS are located in regions prone to hurricanes, cyclones, typhoons, and other extreme weather events. These events are increasing in frequency and intensity due to climate change, posing an existential threat to SIDS' infrastructure, economies, and very existence. Recovery from these disasters is often slow and costly, further hindering development and trapping SIDS into vicious debt cycles.

For example, The Bahamas experienced $3.4 billion (USD) in loss and damages due to Hurricane Dorian. Most recently, private insurers in the Caribbean were estimated to pay out half a billion (USD) in damages due to Hurricane Beryl.

• Remoteness and Dense Populations

Many SIDS are geographically isolated, leading to challenges in logistics, supply chains, and access to essential goods and services. This remoteness, often coupled with dense populations concentrated in coastal areas, amplifies vulnerability to disruptions. High population density can exacerbate the impacts of disasters, straining limited resources and infrastructure, while geographical isolation makes it more difficult and time-consuming to deliver aid and support in times of crisis.

• Vulnerability to Rising Sea Levels

This is perhaps the most pressing threat to SIDS. With many islands being low-lying and surrounded by vast ocean expanses (SIDS control ocean areas 28 times larger than their land mass), rising sea levels (SLR) pose a direct threat to landmass, freshwater resources, and critical infrastructure. Coastal erosion, saltwater intrusion, and increased flooding are devastating communities and livelihoods today.

Let's consider Caribbean SIDS, who represent over 40 million people (and have a higher population per country than other SIDS groupings). We, in the Caribbean, have more than half of our population and key infrastructure located within 1.5km [0.93 miles] (and 79% within 10 km [6.2 miles]) of the coastline. And for The Bahamas, in particular, sea level rise will further impact flooding nationwide - with coastal flooding exposed areas on New Providence increasing to 15% by 2050 and with ‘36% of major tourism properties, 38% of airports, 14% of road networks and 90% of sea ports at risk’ for flooding across country (all of which are vital to ensuring inter-island and global connectivity).

• High Dependence on Tourism

Many SIDS’ economies rely heavily on tourism, a highly exposed sector. Rising sea levels, coral bleaching, extreme weather events, and changes in weather patterns can all deter tourists, impacting a critical source of revenue and employment. Furthermore, the COVID-19 pandemic already starkly exposed the fragility of tourism-dependent economies. The lockdowns and travel restrictions brought global tourism to a standstill, devastating SIDS economies and highlighting our precarious reliance on a single sector.

• Limited Natural Resources

SIDS often lack a diverse and abundant base of natural resources making us heavily reliant on imports for essential goods such as food, fuel, construction materials, and many manufactured goods. For example, a critical statistic is that The Bahamas imports over 90% of our food products (although significant efforts are being undertaken by the Government to reduce this figure). Similar import figures are seen in SIDS across the Atlantic, Caribbean, Indian, and Pacific Oceans.

This dependence creates layers of precariousness: reliance on global supply chains exposes us to geopolitical disruptions, natural disasters (elsewhere in the world), and economic fluctuations. Price volatility for imported goods can be treacherous, particularly when coupled with the damages resulting from climate change, which can further disrupt supply chains and increase transportation costs. This reliance on imports also often leads to a significant trade imbalance, putting additional strain on SIDS’ economies.

These converging vulnerabilities leave SIDS’ economies deeply susceptible to external shocks, from trade disruptions to global pandemics. On the other side of the same coin, economic diversification, a key strategy for larger economies to buffer against such shocks, remains extremely challenging for SIDS.

Why the New Collective Quantified Goal (#NCQG) is a Lifeline for Small Island Developing States?

For SIDS, the New Collective Quantified Goal is not just another agenda item - it is a lifeline. This crucial funding mechanism is essential to address inevitable loss and damage, enable climate adaptation, and mitigate climate impacts. Concretely, this translates to critical investments in resilient infrastructure, early warning systems, disaster preparedness, and sustainable tourism. It is an investment in our survival, our future, and the preservation of our unique cultures and ecosystems.

We cannot allow another Hurricane Dorian or Hurricane Beryl to impact our islands, without action from the world. The urgency for substantial investment in climate action cannot be overstated, especially for us from #SIDS, as the cost of inaction far exceeds the initial investments required. This is why the Alliance of Small Island States (AOSIS) has called for a minimum allocation of $39 billion (USD) per year for SIDS, in grant equivalent terms. This equates to $1 billion (USD) per year for each AOSIS Member State.

At #COP29, we urge the world to recognize the urgency of our situation and to act with courage to ensure a sustainable future for all. We must #StandUpForSIDS!