Climate finance refers to local, national or transnational financing—drawn from public, private
and alternative sources of financing—that seeks to support mitigation and adaptation actions that
will address climate change. The Convention, the Kyoto Protocol and the Paris Agreement call for
financial assistance from Parties with more financial resources to those that are less endowed and
more vulnerable. This recognizes that the contribution of countries to climate change and their
capacity to prevent it and cope with its consequences vary enormously. Climate finance is needed
for mitigation, because large-scale investments are required to significantly reduce emissions.
Climate finance is equally important for adaptation, as significant financial resources are needed
to adapt to the adverse effects and reduce the impacts of a changing climate.
Types of Financing Received
The mitigation and adaptation targets presented in the updated NDC are contingent upon
receiving
international support for technology transfer, capacity-building and financial resources,
including through
the Green Climate Fund (GCF), the Adaptation Fund (AF), multilateral and bilateral agreements
and
the
local private sector. The indicative cost for The Bahamas identified NDC measures through 2030
is
in excess
of USD 4000 million for mitigation and adaptation actions. The exact cost for these activities
will be further
developed over the next few years. As a result of low international ambition for mitigation as
well as still
very high subsidies for financing of carbon intensive activities, the cost of adaptation is
expected to
continue to increase and even go beyond the ability of certain sectors to adapt. The Bahamas
is
not able to
pay for the incremental cost of adaptation and mitigation while supporting the development
agenda
of the
country.
Mitigation91%
Adaptation9%
Climate finance received by type from 2010 - 2020
Summary of The Bahamas Climate Finance Inflows
International NGO:
117,842.00
International NGO:
180,069.00
Private Sector:
10,400,000.00
Private Sector:
40,849,999.00
Multilateral:
3,689,966.00
Multilateral:
99,795,709.00
Mitigation
Adaptation
$155,033,583 total funds received from 2010 - 2020
The Conference of the Parties (COP) and the Conference of the Parties serving as the Meeting of the
Parties to the Paris Agreement (CMA), through decisions 2/CP.27 and 2/CMA.4, established new funding
arrangements for assisting developing countries that are particularly vulnerable to the adverse effects of
climate change, in responding to loss and damage. In this context, the COP and the CMA also decided to
establish a fund for responding to loss and damage whose mandate includes a focus on addressing loss and
damage to assist developing countries that are particularly vulnerable to the adverse effects of climate
change in responding to economic and non-economic loss and damage associated with the adverse effects of
climate change, including extreme weather events and slow onset events.
The COP and CMA at its twenty-eighth and fifth sessions, operationalized the Loss and Damage Fund as an
as entity entrusted with the operation of the Financial Mechanism of the Convention, which would also
serve the Paris Agreement. The Fund will be accountable to and function under the guidance of the COP and
the CMA.
• Inter-American Institute for Cooperation on
Agriculture (IICA)
Gallery
Frequently Asked Questions
Climate change is the change of climate which is attributed directly or indirectly to human
activity that alters the composition of the global atmosphere and which is in addition to natural
climate variability observed over comparable time periods (UNFCCC, 1992).
GHG are atmospheric gases that absorb and emit radiation within the thermal infrared range. They
play a crucial role in the Earth's climate system by trapping heat and contributing to the
greenhouse effect, which regulates the planet's temperature. While naturally occurring in the
atmosphere, human activities have significantly increased the concentrations of these gases,
leading to global warming and climate change.
The main gases are: Carbon Dioxide (CO2), Methane (CH4), Nitrous Oxide (N2O), Fluorinated Gases
GHG emissions inventories are systematic compilations of data on greenhouse gas emissions from
various sources within a defined geographic area, such as a country, region, or city. These
inventories include emissions from sectors such as energy, transportation, industry, agriculture,
forestry, and waste management.
Due to its location in the Atlantic hurricane belt and like other Small Island Developing States
(SIDS), The Bahamas is extremely vulnerable to the effects of disasters and climate change, as
some 80 percent of the landmass is within 5 ft (1.5 m) of mean sea level and coastal areas hold
the majority of the population and economic activity.
For that reason, it is paramount that The Bahamas undertakes major efforts to increase the
resilience to the increasingly devastating effects of climate change and contributes to global
efforts to reduce greenhouse gas emissions.
The Bahamas is undertaking major efforts to shelter against the effects of climate change and is
implementing ambitious measures to reduce its greenhouse gas emissions. In 2022, the country
submitted its Updated Nationally Determined Contribution under the Paris Agreement, pledging a 30%
reduction of emissions by 2030 and aiming for improving its resilience against the adverse effects
of climate change.
Moreover, The Bahamas undertakes efforts across all sectors to enhance its response to climate
change.
Nationally Determined Contributions (NDC) are pledges countries make to the international
community regarding its intended reduction of greenhouse gases and in some cases also its efforts
to adapt to climate change. NDCs are communicated since 2015 under the Paris Agreement, and all
signatory countries are required to enhance the ambition of their NDCs every five years.
The Bahamas in its Updated NDC from 2022 pledges a reduction of 30% GHG emissions through
compared to the business-as-usual scenario in which no action is taken by 2030. It intends to do
so by implementing ambitious reduction measures in its priority sectors: Energy, Industry,
Transport, Forestry, Waste.
Climate change mitigation refers to actions taken to reduce or prevent the emission of GHGs into
the atmosphere, as well as the improvement of carbon sinks aiming to mitigate the impacts of
climate change. Mitigation efforts are essential for limiting global warming, stabilising the
Earth's climate system, and minimising adverse effects on ecosystems, economies, and societies.
In The Bahamas, the NDC drives the implementation of 41 targeted actions in the priority emitting
sectors.
Adaptation is defined, in human systems, as the process of adjustment to actual or expected
climate and its effects, in order to moderate harm or exploit beneficial opportunities. In natural
systems, adaptation is the process of adjustment to actual climate and its effects; human
intervention may facilitate adjustment to expected climate and its effects”. (IPCC, 2022).
In The Bahamas, the NDC drives the implementation of 47 targeted actions in the priority
adaptation sectors.
Loss and damage refers to the negative effects of climate change that occur despite mitigation and
adaptation efforts. While mitigation addresses the causes of climate change (like reducing
greenhouse gas emissions) and adaptation addresses its impacts (like building sea walls to prevent
flooding), loss and damage is concerned with the unavoidable and irreversible impacts of the
climate crisis.
Climate change impacts and risks are becoming more complex and difficult to manage. Scientific
evidence suggests that loss and damage is unequally distributed and not comprehensively addressed
by current adaptation and mitigation, particularly in vulnerable developing countries. Multiple
climate hazards will occur simultaneously and interact, resulting in compounding risks across
sectors and regions.
Climate finance refers to local, national, or transnational financing—drawn from public, private
and alternative sources of financing—that seeks to support mitigation and adaptation actions that
will address climate change.
Between 2010 and 2020, the Bahamas has received about 155 Million USD from international climate
funds and development partners as well as from the private sector to implement climate change
actions with 91% of the funding received for mitigation actions and about 9% for adaptation
actions.
