Dominica government approves financing mechanism to assist national transition to low carbon climate-resilient economy

Joseph, Baron. File photos

The Government of Dominica has approved the establishment of a National Financing Vehicle (NFV) to provide financial and technical support to renewable energy, energy efficiency, blue economy and low carbon projects.

Permanent Secretary in the Ministry of Planning, Economic Development, Climate Resilience, Sustainable Development and Renewable Energy, Gloria Joseph made the announcement while addressing a recently-held Private Sector forum  which was geared at facilitating the local private sector in leveraging Green Climate Fund opportunities for national transition to a low carbon climate resilient economy.

The forum was hosted in collaboration with the Dominica Association of Industry and Commerce (DAIC) through the Ministry of Planning and the Global Green Growth Institute.

“Under the proposed readiness programs, the Ministry of Planning – the national designated authority for the Green Climate Fund – is collaborating with the Global Green Growth Institute (GGGI) to establish, operationalize and capitalize a national financing vehicle fund,” Joseph said.

The objectives of the NFV include: (1) to support the government’s policy objectives on transitioning to a low carbon climate resilience economy by making available long-term affordable climate finance, (2) to attract private sector investments, (3) to support the use and application of renewable energy and energy efficiency technologies in Dominica and (4) to develop the local capacity to underwrite climate finance projects.

Joseph noted that the capability of the Government of Dominica and the local private sector to finance climate change mitigation and adaptation projects is limited, among other things, by “the high cost of capital required, the high debt to GDP ratio which makes it hard for the government and private sector to obtain its required funds.”

The government official believes that the  increase adoption of sustainable energy technology can free up some space by means of reducing operational expenses, but investments to make this happen is often lacking.

She said the government also recognizes the key role of the private sector for national success in the implementation and achievement of climate mitigation and adaptation actions.

“Mindful of the financial barriers to the private sector to perform this role, the Government of the Commonwealth of Dominica is in part utilizing the green climate fund to provide substantial facilitation services to the private sector to allow for the execution for this function,” Joseph indicated.

According to Joseph, in addition to the NFV, other instruments which are being developed to support the sector include the availability of green bonds issued by the Jamaica stock exchange and micro-finance and micro-insurance facilities to name a few.

“We see this as the beginning of a continuous and collaborative engagement with the private sector and our national transformation journey,” she sated.

Meanwhile, Chief Executive Officer of the Climate Resilience Execution Agency of Dominica, Francine Baron, pointed to the reason for current limited private sector participation in climate change mitigation and adaptation projects.

“Renewable energy and energy efficiency projects require high upfront capital investments that domestic financial institutions are often unable to cover or the private sector is unable to access because of the high cost of financing,” she explained.

Baron continued, “Domestic financial institutions are sometimes unfamiliar with low carbon projects and are therefore reluctant to provide the necessary capitals to bring projects to the market.”

She further explained that in the previous GCF proprietary support in Dominica, 63% of private companies cited access to financing as an obstacle in doing business in Dominica.

According to the CREAD CEO, in order to overcome these barriers it is important that financial facilitation be provided to local, regional and international private sector entities so as to effectively capture various skills of investment opportunities and for Dominica in particular, the upstream and downstream geothermal opportunities.

Baron believes that there is tremendous potential for Dominica in the comprehensive development and sustainable use of the geothermal resources.

“Local entities therefore must be supportive in seeking to obtain investments, capture and deliver Important and needed local wealth transfer from these opportunities,” she indicated. “The national finance vehicle which seeks to mobilize the $300 million investment in financing along with other instruments developed by the Ministry of Planning under its GCF portfolio can support this.”

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9 Comments

  1. Marty
    April 14, 2022

    Look at Pinky and Perky. They must be Skerrits chamber maids…

    Well-loved. Like or Dislike: Thumb up 19 Thumb down 0
  2. Francisco Etienne-Dods Telemaque
    April 5, 2022

    I don’t know why people who commits crime such as thievery never feel ashamed, they simply walk like tin idols as if they are special or important, though they are tainted with thevery written over their face.

    I remember years ago, a hurricane blew in Dominica, it did plenty of damage; just about every Dominican in the diasporia legally working in the Unite States and the US Virgin islands donated monney.

    A groupe of young lady’s gave a certain government politician serving in government at the an amount totaling US$10,000.00 dollars or more to take to Dominica to help unfortunate victims.

    That politician as we understand stole (thief)the peoples money to this day the money never got to it destination.

    I wonder in which politician pocket that ten thousand US – EC$26,900.00 has disparaged.

    I would rather hang myself than to disgrace myself by stealing twenty-six thousand nine hundred dollars!

    Well-loved. Like or Dislike: Thumb up 12 Thumb down 1
  3. Marty
    April 1, 2022

    Dictators like Skerrit surround themselves with liars and never ending propaganda. Example: Joseph noted that the capability of the Government of Dominica and the local private sector to finance climate change mitigation and adaptation projects is limited, among other things, by “the high cost of capital required, the high debt to GDP ratio which makes it hard for the government and private sector to obtain its required funds.” As I stated at the beginning, lies and empty propaganda.

    Well-loved. Like or Dislike: Thumb up 37 Thumb down 0
  4. Anonymous
    March 31, 2022

    Square pegs in round holes, neither of whom are qualified for the positions they occupy yet skerrit is talking about who is high school dropouts and who is not qualified to be pm. 20 years of mismanagement, it’s no wonder when austrie claims that we are at the bottom of the stock pile he is so right, there could be no real development without merit!

    Well-loved. Like or Dislike: Thumb up 31 Thumb down 0
  5. March 31, 2022

    Just another “Laundry Mat” to give away free money to DLP supporters and Government operatives without any accountability to the genuine citizens of this country. At least they were honest for once to admit the incapability of Government to provide funding due to “high debt to GDP ratio”; so much for the country they boast has the best economy in the Caribbean ask Clarence, Simeon Mills and Daryl.

    Well-loved. Like or Dislike: Thumb up 36 Thumb down 0
  6. Tt
    March 31, 2022

    Resilient. Most popular word in dominica since Maria….. I’ll play along. … ok population of under 100k, we worried about low carbon. Are you burning coal or mega factories. Invest that money into education. Schools a more robust inclusive curriculum. Start teaching kids life skills. Savings, taxes, basic understanding of the legal system, the constitution etc. Then you’ll have people who will transform this nation of ours.

    Well-loved. Like or Dislike: Thumb up 35 Thumb down 0
  7. Enough is Enough
    March 30, 2022

    But see the two distractors Skerrit called on to distract the nation from the reality of the crisis we In nou. I know for sure Melissa is not happy with them even though they trying to defend her husband. Skerrit, the Hi darling and Hi Babes will not fool us or distract us. Tell us what you did with our $4.5 billion dollars. Address us about why you have not fired Dr Darroux. Tell us if you paid the corrupt Bannis Robert and if so how much you paid her. Tell us why you established secret relations with Syria while you knew Syria had joined Russia in the invasion of Ukraine. Tell us how many Russians, Syrians and Talibans hold our CBI passports. We don’t want to hear from the disgraced Gloria Babes or Baron darling man.

    Well-loved. Like or Dislike: Thumb up 47 Thumb down 1
  8. Ibo France
    March 30, 2022

    How many more daily distractions are you going to publish for this devious regime that has brought a level of divisiveness, hunger, poverty, embarrassment, corruption and underwhelming development to Dominica never experienced before in all its stories history post slavery and colonialism?

    Please to highlight some issues which need urgent attention that, when solved, will make an appreciable difference in the life of every struggling and dispossessed Dominican.

    Here are just a few:
    *full accountability of the missing $4.5b CBI funds
    *Dennis Byron extended delay of electoral reforms
    *Cousin’s purported kidnapping to Dominica ( revelation of all the top players)
    *Recovery of the $6m+ from a local hotelier
    *Recouping of the $millions which was loaned and never repaid to the treasury according to the Director of Audit by Crazy Coconut et al.

    Time you do something meaningful to help this country shed some of its demons under this present administration.

    Well-loved. Like or Dislike: Thumb up 52 Thumb down 5
    • March 31, 2022

      Ibo, relax, relax, boy. What is wrong with you, boy. What is going on around your world, boy? D you have a wife or girl friend? Get some sweet loving for once, boy. I am beginning to get worried about you, boy. Why this constant attack on the PM? If the PM was not doing anything, you would still be complaining he is doing nothing. Relax, relax, boy. When last did you have a physical? Make an appointment with your physician and see if you suffer from whatever. Boy, I am worried about you. Help him Lord, for he knows not what he is saying and doing.

      Hot debate. What do you think? Thumb up 1 Thumb down 48

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