Bahamas faces dire financial situation exacerbated by climate change
Date
9/26/2024 4:21:53 AM
(MENAFN) The Bahamas is facing a dire financial situation exacerbated by climate change, bureaucracy, and the fossil fuel industry, according to Prime Minister Philip Davis. He expressed frustration over the gap between promises of support from wealthier nations and the actual implementation of meaningful assistance.
The country, much like other nations in the Global South, is burdened by debt incurred from climate-related disasters it had little role in causing. Notably, Hurricane Matthew in October 2016 inflicted over USD7 million in damages, and Hurricane Dorian in 2019—recorded as the strongest storm to hit the Bahamas—resulted in damages amounting to USD3.4 billion. This staggering cost is particularly severe given that the Bahamas generates only about USD2.8 to USD2.9 billion in annual revenue, meaning a few days of catastrophic weather can obliterate a year’s worth of income. Currently, the Bahamas is approximately USD10 billion in debt.
Leaders in the Bahamas are actively seeking financial assistance from the Global North and the fossil fuel industry. Climate finance is a critical topic at the ongoing United Nations discussions and will continue to be a focus during international climate negotiations in Azerbaijan next month. However, when the Bahamas applies for financial aid from existing funds, it is often told it is too affluent to qualify, a complaint echoed by other small island nations.
Research indicates that climate change has intensified the severity and rainfall of storms. In terms of emissions, the Bahamas produces less carbon dioxide in an entire year than the United States does in just four hours, highlighting the disproportionate impact of climate change on developing nations.
Barbados Prime Minister Mia Mottley, a vocal advocate for reform in the climate finance system, emphasized during a recent climate week session that 70 percent of the world’s impoverished population resides in countries classified as middle income. She criticized the current financial assistance framework, asserting that it fails to address the needs of these nations and called for significant changes in multinational bank lending and debt relief.
Mottley acknowledged some progress but stressed that the pace of change is insufficient compared to the rapid increase in global temperatures. “If that is the case, we will have a bigger problem than we anticipated,” she warned.
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