13/08/24

GREEN FINANCE: New report highlights innovative approach to finance for Commonwealth SIDS

As published on: thecommonwealth.org, Tuesday 13 August, 2024. 

Today, the Commonwealth Secretariat and Cambridge University’s Centre for Resilience and Sustainable Development (CRSD) unveiled the final report for "Their Future, Our Action and the COMPASS Model: A New Approach to Finance in Commonwealth Small Island Developing States," introducing the innovative Common Pool Asset Structuring Strategy (COMPASS).

This event, held at Marlborough House in London as part of International Youth Day celebrations, showcased COMPASS as a pioneering financial model aimed at enhancing access to sustainable finance for Commonwealth Small Island Developing States (SIDS).

Rethinking finance for SIDS
In today's panel discussing the report, the Commonwealth Secretary-General, The Rt Hon Patricia Scotland KC, underscored the urgent need to address the financial challenges faced by SIDS, particularly in the context of climate change. She said:

"Commonwealth nations, particularly our SIDS, stand at the frontline of climate change. Yet, the international financial system - both public and private - has fundamentally failed to deliver the necessary funding for adaptation and resilience-building. Given the persistent and intertwined nature of these challenges, it is clear that new ways of working and innovative solutions are essential.

This partnership has been groundbreaking in many ways, uniting over 5,000 young people, technical and policy experts, lawyers, financial professionals, politicians, and leaders from across the Commonwealth to co-create solutions. COMPASS offers a pathway to unlocking diverse financial resources, including carbon credits and biodiversity conservation. As we move forward, I strongly encourage all stakeholders to download the report and join us in bringing COMPASS to life in its next phase."

Championing youth and sustainable development
His Excellency Mr. Paul Andrew Gomez, High Commissioner of The Bahamas, expressed strong support for COMPASS, recognising its potential to unlock critical finance for SIDS, with a focus on youth empowerment.

"As a champion for COMPASS, I am committed to turning this innovative concept into reality. COMPASS has the potential to create new jobs and first-time entrepreneurs, especially among the youth, a demographic facing high levels of unemployment and social challenges in SIDS.

By building a coalition of support and demonstrating early successes, we can overcome challenges and make COMPASS a transformative force for our nations, " he said.

Innovative collaboration and research
Professor Nazia M. Habib, Founder of CRSD, elaborated on the extensive research and collaboration that culminated in COMPASS, highlighting the importance of managing risks for both investors and SIDS to ensure the financial system supports these vulnerable nations.

"COMPASS is the result of co-creating innovative ideas with a foundation in rigorous research and analysis. Our work has demonstrated the untapped potential within SIDS’ natural assets and youthful populations, offering a blueprint for economic and social resilience,” she explained.

Empowering the next generation

Nahjae Nunes, Vice-Chairperson of the Commonwealth Youth Council, shared his enthusiasm for COMPASS, viewing it as a vehicle to harness youth capacity into impactful projects.

"COMPASS is not just a financial model; it's a platform for young professionals to be at the forefront of implementation. Including youth perspectives in the operationalisation of this model is essential to ensure it is responsive to the needs and aspirations of our generation," he advocated.

A call to action for sustainable futures
The event concluded with a collective call for stakeholders to collaborate on implementing COMPASS, a strategy that promises to reshape the financial landscapes in SIDS and support the Commonwealth's 1.5 billion young citizens. The final report for "Their Future, Our Action" is now available for download, inviting all interested parties to join this vital initiative and contribute to a sustainable future for SIDS.

Tags

Green finance Commonwealth SIDS Sustainable finance