Land of Wood & Green Bonds – Jamaica Set For First Caribbean Green Bond

Jamaica has been given the green light to list the first ever Caribbean Green Bond on the stock market.

Prime Minister Andrew Holness made the announcement earlier today (October 7) while delivering the keynote at the Green Climate Fund Private Investment for Climate Conference (GPIC) in Incheon, the Republic of Korea.

According to Prime Minister Holness the Green Climate Fund approved the listing which will place Jamaica as the Caribbean country of choice to conduct climate smart and sustainable business.

In leading the charge to build resilience, the Prime Minister underscored that the Government has taken a holistic view at new, viable and sustainable pre and post disaster arrangements for managing financial risks from disasters.

“We have developed a broad framework for disaster risk management, including a National Disaster Risk Financing Policy that provides for financial risk protection, including budgetary contingency funds and state contingent debt instruments such as catastrophe bonds, and catastrophe linked insurance. We have also established a contingency fund, the National Catastrophic Disaster Reserve Fund and have started to build-up a strong fiscal buffer; while improving insurance of public assets and incorporating disaster risk analysis in public sector investments and overall development planning,” said Prime Minister Holness.

Prime Minister Andrew Holness also announced that Jamaica has joined the Finance Ministers Coalition for Climate Action to ensure continued efforts to climate proof the economy.

In that regard, Prime Minister Holness stated that the Government recognizes the critical role that Ministers of Finance play in addressing and preparing for the climate crisis nationally, regionally and globally. The Ministers of Finance are expected to ensure the continuation of knowledge exchange and best practices in planning concrete, effective policy and tax measures to build resilience.

Alluding to Jamaica’s historic move to place the Wigton Windfarm on the stock market thereby allowing Jamaicans to purchase shares in the IPO, Prime Minister Holness underscored that Jamaica was able to achieve 17% of renewable energy generation.

“In Jamaica we will continue working in strengthening our economy and ensure better fiscal management, because that is our first line of defense. We will continue to be global advocates for the increased mobilization of public and private finance for mitigation and adaptation and we reiterate our support for a successful replenishment of the Green Climate Fund, which is today the most important institution that channels climate finance to developing countries; and we will continue playing our role of regulator and market maker to attract more private sector investment into the green economy,” stated Prime Minister Holness.