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Last year, a number of low-income, climate vulnerable countries stepped up their Paris Agreement commitments, known as Nationally Determined Contributions (NDCs). These nations recognise that leapfrogging to climate-friendly development models would not only help save the planet and reduce risks posed by global warming, but that it also presents unique opportunities for social and economic progress. However, unlocking the full mitigation potential of these ambitious developing countries hinges on wealthy nations delivering on their climate finance promises.

Improving access to climate finance and increasing absorption of funding opportunities are integral to speeding up Small Island Developing States’ (SIDS) efforts to enhance adaptation and build long-term resilience to climate change. A recent “Writeshop” in Samoa, which brought together Pacific and Caribbean representatives to build on each other's experiences, yielded a number of valuable lessons.

Belize has embarked on its two-year term leading the Alliance of Small Island States (AOSIS). The Caribbean nation’s vision for the Alliance, which turns 30 this year, focuses on ambitious action on climate change, sustainable development and oceans.

This week, climate finance – funds for developing countries to enable low-emission and climate-resilient development – takes center stage as political leaders discuss how to ramp up climate ambition at COP24 in Katowice, Poland. What role can investments and finance for mitigation and adaptation play, in particular for the most vulnerable countries?

By now it is clear that climate change is as much an economic problem as it is an environmental one. Rising temperatures slow economic growth and devastating climate-related impacts leave large negative imprints on economic development of developing countries. Most financial instruments that have been proposed in the context of loss and damage do not solve the problems developing countries face.