Transforming Our Future: Insightful Remarks from Hon. Julian Fraser, Minister of Environment, Natural Resources, and Climate Change

Greetings from the Virgin Islands! I want to express my gratitude to the OECS Commission for organizing this panel. Today, I’d like to discuss the Virgin Islands Climate Change Trust Fund, which plays a vital role in our efforts to secure international funding for climate initiatives.

As an Overseas Territory, we often find ourselves sidelined in discussions about climate finance. Yet, our islands are interconnected, and creating a climate-resilient Caribbean means everyone must have access to the resources needed for adaptation.

It’s important to understand the climate finance landscape for Overseas Territories. Although we are a UK territory, we have limited support for climate action. The UK provides only minimal assistance, largely focused on preserving nature through programs like Darwin Plus and Blue Belt. Unfortunately, we don’t qualify for significant international funding sources like the Global Environment Facility or Green Climate Fund because the UN does not recognize Overseas Territories in its climate frameworks.

This exclusion compels us to take matters into our own hands. Hence, the Virgin Islands Climate Change Trust Fund was born. Established through the Virgin Islands Climate Change Trust Fund Act of 2015, this initiative is geared toward raising and managing funds specifically for climate change adaptation and mitigation.

The Trust Fund is a crucial element of our broader climate response strategy, which has evolved since 2008 with the active support of the Caribbean Community Climate Change Centre (5Cs). Our approach is built on three key pillars:

1. A multi-sector Climate Change Committee that updates our Climate Change Policy.
2. A comprehensive Climate Change Policy with directives across twelve sectors.
3. The Trust Fund as a sustainable financing mechanism.

The idea for the Trust Fund gained momentum at COP15 in Copenhagen, where representatives from UK Overseas Territories recognized our marginal position in climate discussions. With help from the 5Cs, we established our own climate funds to secure money beyond conventional avenues.

Currently, the Trust Fund is becoming operational. Governed by a nine-member Board, it includes six non-government members, ensuring a level of independence from political influence. The Board is responsible for the Trust Fund’s projects, and no government official has the power to override their decisions.

This independence is vital for maintaining trust. The governance framework includes checks and balances, such as audits and financial oversight, which aim to align expenditures with our climate objectives.

As we prepare for an international launch at COP30 in Brazil this November, we are excited to announce that we will start with over $5.2 million in seed funding. This funding is generated from an Environmental and Tourism Levy imposed on visitors, excluding cruise ship passengers. This launch will help us open our first Call for Proposals, allowing local and international stakeholders to contribute to climate initiatives.

We want our Trust Fund to be a learning model for other small island nations. The key features of our funding model attract high-net-worth individuals and organizations committed to environmental sustainability.

In summary, our Trust Fund represents a new direction for funding climate change efforts in the Virgin Islands. By ensuring fair access and transparency, we hope to be a beacon for other territories looking to empower their communities against climate challenges.

Through this proactive approach, we are laying the groundwork for a resilient future that prioritizes both our environment and socio-economic development.

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