Jamaica’s Central Bank and the French Development Agency (AFD) recently signed a financing agreement for the implementation of phase two of the project to assess domestic climate-related financial risks.

The project, the first phase of which commenced in December 2022, is supported by the AFD and the European Union (EU) with funding from the EU Latin America Caribbean Investment Facility (LACIF). 

The project supports the Bank of Jamaica (BOJ) and the Financial Services Commission (FSC) in assessing climate-related risks within the financial system. The two financial services regulators will also incorporate those risks into supervisory guidelines, practices and macroprudential policy formulation.

Speaking at the signing, which took place recently at BOJ’s downtown Kingston headquarters, senior deputy governor Dr. Wayne Robinson thanked the AFD and the EU for their foresight and generosity in funding and providing technical support for the project, which he said, will have far-reaching implications for the Jamaican financial sector.

“As a central bank, we are keenly aware of the unique challenges that climate change poses, particularly for small island developing states like Jamaica. Thus, it is essential for us to deepen our understanding and management of climate-related financial risks and to foster collaboration with international partners to support the transition towards a sustainable economy,” Robinson said.

In his comments, French ambassador to Jamaica Olivier Guyonvarch commended BOJ for undertaking the project, noting that climate change was among the most difficult challenges faced by many nations worldwide. He added that tackling the problem of climate change requires a global response and that France and Jamaica, which are neighbours in the Caribbean, are natural partners, who are facing similar challenges.

First counsellor and head of cooperation at the EU Delegation in Jamaica, Aniceto Rodriquez Ruiz, in his comments at the signing said the climate risk project with BOJ represents a new and more coordinated approach to project implementation by EU member states, and builds of the EU’s many decades of project implementation in Jamaica.