UNDP, UK and Cabo Verde push finance tools for SIDS: SIDS 2.0, blue bonds and the MVI

Speakers at a UN Ocean Conference panel in Nice presented new and existing financing approaches intended to help Small Island Developing States (SIDS) translate ocean and climate plans into action.

Francine Pickup, UNDP's deputy assistant administrator and deputy director for policy and programme support, said UNDP's new SIDS 2.0 offer is aligned with the Antigua and Barbuda Agenda for SIDS and focuses on nature and climate, means of implementation (notably access to finance), and digital readiness for remote communities.

"SIDS really are leaders ... they're producing some of the most exciting innovations," Pickup said, adding that the SIDS 2.0 offer aims to step up support for accessing finance and to accelerate SDG delivery through better digital infrastructure.

Rebecca Fabrissi, the United Kingdom's SIDS envoy and deputy director at the FCDO, stressed donor advocacy for reforming the international financial system, capacity building to prepare bankable projects, and partnerships to strengthen blue economies. She also noted the UK's role in international marine protection efforts and said the UK co-led a global ocean alliance in support of the 30-by-30 marine protection target.

Ambassador Tanya Ramoaldo of Cabo Verde described how Cabo Verde is preparing a second edition of blue bonds that will channel proceeds to community-led projects with a focus on women and youth, while also using debt-swap deals (an example with Portugal was cited) to convert debt service into climate and nature funds for local projects.

A panelist speaking on financing for Pacific SIDS highlighted calls for diversity in finance and the Multidimensional Vulnerability Index (MVI) as a complement to GDP-based allocations. The speaker said the MVI is intended to help make concessional finance and debt treatment more responsive to SIDS' specific vulnerabilities, while urging partners and IFI boards to consider MVI metrics when allocating resources.

Panelists urged that grants be combined with instruments that can attract private and concessional funds, and that donors align and coordinate to reduce administrative burdens on small SIDS and improve the speed and readiness of projects for additional financing.