International climate finance in land use, land use change and forestry in Caribbean Small Island Developing States

Abstract

This paper examines the critical role of international climate finance in supporting Caribbean Small Island Developing States (SIDS) in addressing climate change through Land Use, Land-Use Change, and Forestry (LULUCF) initiatives. By analysing data from the Organization for Economic Cooperation and Development's (OECD) Development Assistance Committee (DAC) Creditor Reporting System (CRS), the paper identifies significant disparities in the distribution of climate finance across various categories, including mitigation versus adaptation efforts, recipient countries, targeted sectors, funding sources, and financing instruments. These disparities, coupled with a troubling gap between financial needs and available resources, hinder the effectiveness of LULUCF projects to achieve the climate goals of the region. To address these challenges, the paper offers practical recommendations for Caribbean SIDS and their development partners. These include optimizing resource allocation within LULUCF, establishing methods to assess the effectiveness of climate finance, facilitating constructive dialogue with development partners, improving data collection and project design and alternative financing mechanisms. By providing these solutions and highlighting key areas for improvement, the paper aims to empower Caribbean SIDS to bridge the LULUCF financing gap, ultimately contributing to achieving their climate goals and promoting sustainable land management and forestry practices.