Climate change vulnerability, adaptation and public debt sustainability in Small Island Developing States

This paper evaluates the climate change-related vulnerabilities of the Small Island Developing States (SIDS). The paper reviews the limited studies conducted so far, on the potential long-term costs of effective adaptation investment programs.

Using the most recent Debt Sustainability Analyses of SIDS, the paper discusses the challenges countries with high public debt levels face and whether a general program of debt relief might be a feasible way to fund the adaptation investment requirements of SIDS. Finally, the paper discusses the type of assistance that SIDS need to strengthen their resilience to climate change in a cost-effective manner, and the role development partners can play in supporting climate-resilient development.