Barbados and the Organization of Petroleum Exporting Countries (OPEC) Fund have launched the Vulnerability to Viability (V2V) Compact, whose goal is to provide cheaper, longer-term, and more predictable funding to countries facing severe climate shocks and high sovereign borrowing costs.
Barbados’ Senior Minister of Foreign Affairs and Foreign Trade, Christopher Sinckler, addressing the 56th Regular Session of the Organization of American States (OAS) General Assembly, here on Wednesday, said that the initiative was launched by Barbados Prime Minister Mia Mottley and President General of the OPEC Fund, Dr. Abdulhamid Alkhalifa, on Tuesday. The V2V Compact is a landmark international finance partnership launched by 74 climate-vulnerable economies (CVF-V20) and development banks, led by the OPEC Fund.
Sinckler said that Barbados signed the initiative in its capacity as Chair of the Climate Vulnerable Forum and its V20 Finance Ministers, ‘which aims to mobilise much-needed flow and affordability of development finance to economies that have contributed the least to global emissions but suffered disproportionately from its impacts.
‘Team development partners in the financial sector, include members of the Arab Coordination Group, the African Development Bank, the Asia Development Bank, the Caribbean Development Bank, the Inter-American Bank for Development CAF, the Inter-American Development Bank, the World Bank, and others.
‘This compact focusses on three key sectors, central to long-term resilience, water, education, and health. By combining more affordable development finance (4:38) with private capital mobilisation, to have better terms, more concessional on interest rates, and longer on tenure, from 15 to 20-year money to 30 to 40-year money.
‘We commend this new compact to members of this Assembly and of the OAS for those vulnerable climate countries who are on the forefront, the front line of the climate battle,’ Sinckler said.
Earlier, Sinckler told delegates that the hemisphere enters the second quarter of this century facing profound challenges.
‘We continue to grapple with rising debt, climate shocks, food insecurity, transnational crime, democratic pressures, and widening inequality. Yet beneath these challenges lies a deeper concern, a growing crisis in institutions, that is, the trust in institutions and in our collective abilities to deliver solutions. ‘
He said that the question before the OAS, therefore, is not whether the Americas possesses sufficient resources or knowledge.
‘The question is whether we possess the political will to act together. This is why the theme of this conference is so timely. Firm multilateralism is not a diplomatic preference. It is a necessity.’
Sinckler said that no nation, regardless of its size or power, can effectively confront today’s interconnected challenges alone, noting that for small states, multilateralism remains the principal guarantee that rules, rather than power, shape outcomes.
He said it is the foundation upon which sovereign equality, participation, and international cooperation rests.
Sinckler said that for the Caribbean, the climate crisis represents the immediate test of times.
‘Climate vulnerability is no longer solely an environmental concern. It is a developmental challenge, a fiscal challenge, an energy challenge, and increasingly a security challenge.
‘Every major hurricane or storm can erase years of economic progress in a matter of hours. This reality is why Barbados continues to champion reform of the international financial architecture through the Bridgetown Initiative and other actions.’
Sinckler said that countries must not be forced deeper into debt simply to protect themselves from climate impacts they did little to create.
‘We must align debt sustainability resilience, resilient financing, insurance, and investment into a coherent framework that allows vulnerable countries not to merely survive the shocks but to emerge stronger from them.’
Sinckler said that Barbados is supportive of the actions being taken in Haiti, ‘not only because it is an urgent problem for us, but because we know that lawlessness and bad behaviour descend into criminality and, like any other infectious human disease, can spread.
‘We have to act expeditiously and concretely to reverse the lawlessness that we have seen in Haiti because whenever one state is challenged, all the states of the Americas are challenged. ‘
He said that for the OAS to remain relevant, it too must evolve, noting that democracy cannot be reduced just to elections.
‘It must deliver fairness, opportunity, and accountability, including with trust. The Inter-American Development Charter must therefore remain a living instrument, a lived reality for all our peoples, and history will judge this Assembly not by our declarations, not by our resolutions, but by the actions and the impacts which they create,’ he added.