18 July 2023 - UK Small Island Developing States Strategy - Oral evidence

International Development Committee hears first evidence in new inquiry on Small Island Developing States

The UN grouping of Small Island Developing States spans different geographies, cultures, and income levels. However, these states face a common set of challenges – notably: vulnerability to the impacts of climate change; small populations; and economic issues that include over-reliance on single industries like tourism or seafood, over-reliance on food imports; and difficulties in accessing international finance.

In combination, these vulnerabilities mean that shocks can have a catastrophic impact and are more difficult to recover from.

As Minister of Finance, Trade and the Blue Economy from 2015-2016, John Paul-Adam negotiated a debt for climate change adaptation swap that placed 30% of Seychelles oceanic space under protection and launched the process for Seychelles to become the first issuer of a Blue Bond. He also served as Seychelles’ Minister of Foreign Affairs (2010-2015) and Minister of Health (2016-2019).

In the Seychelles, coastal erosion and massive flooding events have damaged critical coastal infrastructure such as airports, ports, desalination plants, and main roads, utility lines, houses, hotels and other buildings. The Blue Bond is intended to allow lending by private investors, guaranteed in part by the World Bank to reduce the risk and enable lenders to charge lower interest. Seychelles used the funding to support sustainable fisheries projects.

Emily Wilkinson has also served as Chief Scientific Adviser to the Climate Resilience Agency for Dominica, supporting the nation’s ambition to become the world’s first climate-resilient nation.

Dominica had already been battered by Tropical Storm Erika in 2015, when hurricane Maria hit in 2017. The damage caused by Maria was estimated at 224% of GDP. The island’s rainforest, critical to its attraction as a nature-rich tourist destination, was destroyed – with further impact on the nation’s finances and ability to recover. By 2018, Dominica was already in severe debt distress. Two years later, as the Covid-19 pandemic hit tourism revenues, the economy contracted by a further 10%.