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May 20, 2019


The vulnerability of Caribbean countries to climate change is beyond doubt. Recent economic studies estimate that the economic losses due to climate change have a severe impact on the economy. The Fifth Assessment Report from the Inter-Governmental Panel on Climate Change (IPCC) indicates an increase in surface temperatures of 1.4 C, a decrease in rainfall by 5-6% and a rise of the sea level of between 0.5 and 0.6 meters by the end of the century.1 Acknowledging the blurry base line data available and the limitations of climate projections it is estimated that under a business-as-usual scenario economic cost for the region could sum up to USD 10.7 billion as soon as 2025, USD 22 billion by 2050 and USD 46 billion by 2100 annually. This represents 5%, 10% and 22% respectively of Caribbean Community (CARICOM) countries’ GDP as per 2004.2 Without financial assistance, countries would be propelled into a constant recession.