‘Support’ for Bridgetown Initiative 3.0

The Barbados-led Bridgetown Initiative 3.0 has received some major international support as the island’s top diplomat in Geneva, Switzerland, urges more countries to join the effort to reform global financing and shock-proof vulnerable economies.

The initiative was discussed as a main agenda item on Wednesday during a meeting of the World Trade Organisation’s (WTO) general council, the WTO’s highest decision-making body.

Build on progress

Matthew Wilson, Barbados’ Ambassador to the United Nations (UN), WTO and other international organisations in Geneva, told the meeting that Bridgetown Initiative 3.0, which was formally released on September 27 at the UN Summit For The Future, “seeks to build on this progress made to date and to galvanise all relevant entities to respond to the climate crisis in a fair and balanced manner under their individual mandates”.

He noted that the effort was one to “bridge the financing gap, amplify our collective voice within the international financial architecture and implement essential reforms”.

A number of countries voiced support for Bridgetown Initiative 3.0 during the general council meeting, including Bangladesh on behalf of the Group of Least Developed Countries, Jamaica on behalf of CARICOM countries, Guyana on behalf of the Africa, Caribbean and Pacific Group, Antigua and Barbuda on behalf of the Organisation of Eastern Caribbean States, Cameroon on behalf of African Group, and Samoa on behalf of the Pacific Group.

There was also backing from Trinidad and Tobago, Seychelles, Norway, United Kingdom, Japan and Mauritius.

Wilson told WTO members the changes proposed “are vital to ensure that developing and emerging markets have the financial freedom to address climate change without compromising economic development”.

“Bridgetown Initiative 3.0 asks for a new issuance of at least US$650 billion in SDRs. This contrasts the Bridgetown 2.0 request, which was for a rechannelling of the US$100 billion in SDRs previously going to the Poverty Reduction and Growth Trust and the Resilience and Sustainability Trust,” the ambassador said.

“Also, it asks multilateral development banks to develop a plan to provide $300 billion per year in ‘affordable, longerterm (30 to 50 year) financing’ for achieving climate-related Sustainable Development Goals, adaptation and concessional financing.”

Changes

Wilson added: “Beyond specific funding goals, we hope to see changes to the debt sustainability analysis frameworks, which are the main tool for multilateral institutions to assess risks and debt sustainability to lower-income countries. Ideally, these frameworks would better reflect investments in adaptation and clean energy.

“Bridgetown 3.0 also highlights the need for liquid funds for disaster preparedness and emergency response. The impact of Hurricane Beryl in July showed us that there’s a lot more that has to be done on the disaster response side and addressing post-disaster liquidity.”

(SC)