Credit FrankRamspott/iStock by Getty Images
Credit FrankRamspott/iStock by Getty Images
Eight proposals for greening public investment management in Jamaica...
Credit FrankRamspott/iStock by Getty Images
Credit FrankRamspott/iStock by Getty Images
Eight proposals for greening public investment management in Jamaica...
Jamaica’s C-PIMA—Boosting Climate Resilience and Supporting the RSF[1]
Jamaica, being a Caribbean island, is highly exposed to multiple natural hazards including tropical cyclones, floods, and droughts. Over the coming decades, as climate change continues to progress, Jamaica is likely to experience more frequent heatwaves and more irregular rainfalls that heighten risks of droughts or flooding, stronger tropical cyclones, and rising sea levels. Transport, energy, and water and sanitation infrastructures concentrated in the coastal areas are particularly vulnerable to the impact from these natural hazards.
In that context, the Fiscal Affairs Department (FAD) of the IMF, at the request of the Government of Jamaica, carried out a Climate Public Investment Management Assessment
(C-PIMA) to assist the government in making public investment more resilient to the impact of climate change.
According to the Jamaica C-PIMA, progress has been made in the development of a comprehensive climate change policy framework and in planning for disaster risk financing. But there are many weaknesses in current policies and practices (see chart below). Notably:
Jamaica: Institutional Strength of C-PIMA Institutions in Jamaica
On these grounds, the C-PIMA assessment makes eight high-priority recommendations which could improve climate-related public investment management in Jamaica and support green and sustainable economic growth.
The C-PIMA recommendations have informed the design of the reform measures for a recently approved Arrangement Under the Precautionary Liquidity Line and the Resilience and Sustainability Facility. Ultimately, six of the 12 reform measures relate to public investment management and public financial management.
The FAD’s capacity development support did not end there. The Fund will be assisting the authorities in the implementation of these reform measures, in collaboration with other development partners.
[1] The Resilience and Sustainability Facility (RSF) is an IMF instrument that provides affordable long-term financing to countries undertaking reforms that reduce risks to prospective balance of payments stability, including those related to climate change and pandemic preparedness.
