Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697627809914.pdf (Antigua and Barbuda)
INVESTING IN ANTIGUA & BARBUDA SIRF FUND: FOCUS AREAS Investing)across)a)range)of) environment)and)climate!

projects.$ $ Biodiversity$ Protected(areas( management,(biodiversity,+ bio#prospecting++$ $ Adaptation)$ Energy'resilience,'flooding,' drought,)coastal)zone) management$ $ Mitigation($ Energy'efficiency,'renewable( energy,"carbon"sinks!$ $ $ Capitalization Rationale for the Sustainable Island Resource Framework (SIRF) Fund SUMMARY The$ Government) of) Antigua) and) Barbuda!
is# developing# a# national# fund," the" Sustainable" Island'Resource'Framework!

(SIRF)!Fund,"to!serve%as%the%primary%channel'for!environmental,, climate( mitigation( and( adaptation( funding' from' international!

and$ domestic!

sources."

Legislated)through!the$Environmental,Protection,and,Management,Act$of$2015!

(EPMA),!the$ SIRF% Fund% will$ provide# the# framework# financial# mechanism# to# implement# the# Act,1!
and$ is$ the$ primary$ means$ for$ implementing$ Antigua$ and$ Barbuda’s$ ambitious$ climate$ action$ targets.2!

By# serving# as# the!

National( Implementing( Entity( for( all( environmentally#related' finance'and'technical'assistance,'the!SIRF%Fund%will%catalyze(internal(and(external(funding( sources' to' enable& the& country& to# meet!

its$ climate( and( sustainability* goals* in!

a" coordinated,+systematic+and+cost!effective'manner.
!$ THE CHALLENGES The$SIRF$Fund$is$essential$for!Antigua(and(Barbuda(to(respond(to(the!range&of&sustainability* challenges)facing)the)country.

)Specifically,)successful)implementation)of)the)SIRF)Fund)will) support'goals'relating'to:$ Economic' sustainability$ Climate( change" $ Biodiversity" Estimates!

for$ Antigua$ and$ Barbuda’s$ national$ debt$ range$ from$ 87%$ #!
130%%of%its%GDP.3!At#these#levels,#financing!is!unaffordable,,making,the, country( particularly( vulnerable( to( global( macroeconomic( swings( (e.g.

( fossil& fuel& price!

volatilities).$ Further,$ with$ tourism$ comprising$ over$ 70%" of#the#economy,#sustainable#management#of#natural#resources#is#critical# to#long#term%economic&growth!and$prosperity.
"$ As" a" small" island" developing" state," the$ financial$ needs$ of$ Antigua$ and$ Barbuda' (A' &' B),' to# respond# to# and# prepare# for# climate# change# are# mounting(every(year.

(The$government!estimates'an'annual'requirement' of#XC$!33"million!

(~US$&12.2&million)!per$year$over$the$next$ten$years,$to$ meet$adaptation$and$mitigation$needs.$$ The$ islands’$ Protected$ Areas$ system$ has$ an$ estimated$ annual$ US$5$ million&budget&requirement,&but"currently)A)&)B’s)government)is)able)to!
support!less$than$half$of$its$needs!for$biodiversity$protection.

!The$island$ has$already$witness$local$extinctions$of!valuable'flora'and'fauna.

'$ in% investments% Coordination$ With%over%US$!1"million"received'annually'for'environmental'and'climate' funding,( the( country( has( lacked( a( single( pathway( for( receiving,( coordinating* and* managing* incoming* financial* flows* in* an* efficient* and* systematic) manner.)
The) SIRF) Fund) will) be) a) first) for) A" &" B," creating" a" streamlined)platform)to)work)with)all)external!climate(and(environment( financing'sources,"with"access"provisions"for"government,"NGOs,"and"the" private'sector.

!$ The$ SIRF$ Fund$ will$ monetize$ and$ attract% traditional% knowledge) for!

the$ uses$ and$ health$ benefits( of( indigenous) biological) resources,( where( a" portion" of" the" proceeds( will( support( communities( and$biodiversity$protection."
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ 1!This%overarching%environmental%legislation%sets%up%effective%environmental%management'administrative'responsibilities,'consolidates'multilateral' environmental+agreements,+and+establishes+a+framework+financial+mechanism+to+implement+the+Act+(the+SIRF+Fund).$ 2!http://www4.unfccc.int/submissions/INDC/Published%20Documents/Antigua%20and%20Barbuda/1/INDC_Antigua_Barbuda.pdf!$ 3!SPPARE&Document&and&http://antiguaobserver.com/pm#says#ab#may#become#second#highest#debtor#nation/!$ SIRF FUND DESIGN !
!

!2!

Figure'1:"Proposed(Design&of&Antigua(and(Barbuda’s!Sustainable%Island%Resource%Framework%Fund!

(SIRF&Fund) WHAT DOES THE SIRF FUND DO?

The$SIRF!Fund!invests!across&a&wide&range&of&adaptation,"mitigation!and$environmental$management!projects.

*Adaptation*projects* include(protected(areas(management(and(biodiversity,(while(mitigation(projects(will(focus&on&the$nexus$of$energy$and$water.4!!

The$SIRF$Fund$has$six$main$elements,"known"as!disbursal)mechanisms.
"Listed"below!in#Table&1!are$the$elements,$its$purpose,$how$ these!mechanims)work!and$who$is$eligible$to$access$funding.!!

!3!

Table&1:"Disbursal)mechanisms)of#the#SIRF#Fund!

Element!

Investments( arm!

Purpose!

Invest'in'renewable'energy,' bioprospecting,*protected* areas%%and%other%green% project!

How$it$works$!

SIRF!

will!

use!

grant!

and!

concessional!

financing!

not!

available!

to!

APUA!

or!

the!

private!

sector!

to!

invest!

in!

on=!

and!

off= grid!

electricity.!

!

The!


electricity!

will!

be!

sold!

to!

the!

Government,!

APUA!

Water!

Unit!and!the!other!entities!designated!by!

the!Cabinet!of!Antigua!and!Barbuda.!!!

Who$is$Eligible!

SIRF!is#the#investor#and#primary" national'benefactor'of'the' investments!

The!

Government!

has!

passed!

legislation!

to!

provide!

the!

framework!

to!

attract!

research!in!bioprospecting.!!The!SIRF!will!

further!

enabling!

environment!needed!for!this!to!succeed.!

provide!


the!

Revolving)fund!

Small%and$ medium&loans!

NGO$facility!

Insurance!

Debt%for%nature!

and/or'climate' adaptation!

swaps!

Provide'concessional!

(e.g.,& low=interest)!loans&to& vulnerable)groups)to) implement(climate( adaptation(and(mitigation( and$to$implement!the$ Environmental, Management(Act((2015)!

Promote'energy&efficiency," renewable(energy,!and$ reduce&credit&risk!to#lender!!
Support'non=profits( engaged&in&adaptation& mitigation(and(general( implementation*of*the* Environment*Management* Act$(2015)!

Provide(the(enabling( environment)and)access)to) risk!instruments)provide)by) the$GCF!

Reduce!Antigua(and( Barbuda’s!financial'burden' and$achieve$sustainable$ development*and* conservation+goals!

!

Small%loans%disbursed%to%traditionally% high=risk%groups,%such%as%home#and# building(owners,(farmers(and!fishers,"and" loan%payments&are&re=disbursed(to( maximize'impact!
Vulnerable(populations(that( cannot&access&financing&from&the& traditional)banks!

Loans&chanelled&via&credit&unions"or" banks&starting&at&a&3%&interest&rate.& These%rates%of%the%loans%will%allow%for%the% transition(to(a(low(carbon(economy(and( build&resilience&in&the&building&sectors.!

•"Funded"from"15%"of"the"return"on"all!

investments!

•"Funding"decisions"made"by"board" consisting(of(NGOs!and$observers!
Work%with%local%insurance%companies%and% the$Green$Climate$Fund$to$provide$an$ opportunity)to#access#afffordable# insurance!

A"financial"transaction"in"which"the$ country’s!sovereign)debt%may%be%repaid' by#a#third#party#or#forgiven)in)exchange) for$investments$in$conservation!and$ other"eligible"impacts!

Key$sectors,$including(farms,!

!small% businesses,(and$homeowners!


All#NGOs#provided#projects"are" consistent(with(the(national' legislation*and*the*GEF’s*criteria!as# well$as$the$National$ Environnmental,Management, Strategy!

Farms,'coastal'areas'and' watersheds)and)Government) installations!

Through'bilatieral'arrangements' with%donors,%including%countries*or# NGOs!!!

!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
4!Energy=intensive'desalination'accounts'for'the'single'largest'use'of'energy'in!Antigua(&(Barbuda.!

THE SIRF FUND ADDS VALUE The$ fund$ will$ be$ a$ coordinated,$ systematic$ initiative$ that$ will$ reduce$ costs$ in$ the$ long$ term.$ The$ fund’s$ design$ will$ serve$ many$ !4!

purposes.!

Streamlining+ finance!

Strategic,* long"term% approach!

Resiliency!

The$ SIRF$ Fund$ will$ streamline$ international$ finance$ and$ implementation$ processes."
Acting' as' the' National' Implementing* Entity,* the* SIRF* Fund* will* reduce* duplication* across* agencies,* consolidating* efforts* under* one* umbrella.!

A&B"cannot"do"much"to"reduce"incidence"of"natural"events,"but"a"predictable,"consistent"source"of"financing"for" planning'and'contingency'at'the'ecosystem'and'infrastructure'level'reduces'vulnerability.
'This'approach'will'also" address&institutional&barriers&and&capacity&issues.&In&the&past,&the&country&has&found&institutional&arrangements!to# be#fragmented#and#turf#issues#are#not#uncommon.#It#has#also#been#difficult#to#attract#and#retain#talent.

!The$SIRF$ fund%will%address%this!challenge.!

The$ SIRF% Fund% will% focus& on& various( issues( around( resilience.

( For$ example,$ the$ government$ has$ recognized$ the!

important)nexus)between!water&and&energy.


"The"United"Nations"Convention"to"Combat"Desertification"(UNCCD)" National( Action( Program& for& Antigua& and& Barbuda& indicated& incidences& of& dry& spells& and& droughts& occurring& too& quickly(for(the(country(to(cope.

(At(the(same(time,(sixty(percent(of(water(for(domestic(use(is(generated(by(reverse( osmosis% requiring% a% continuous% average% 2% MW% of% electric!

capacity.!
capacity.!

In# this# regard,# working# on# renewable# energy# and$watershed$management$will$improve$resilience$for$A&B.#!

Long"term%% financial& stability!

A&B"is"burdened"with"a"high$debt$to$GDP$ratio$and$budgets$of$various$ministries,$including$environment,$health,$ and$other$social$programs$have$been$cut.

"Reducing)public)sector)energy)costs)can)provide)immediate)and)long= term%savings!for$the$country.$At$the$same$time,$there$are$large%users%on%the%grid%that%only!pay$their$bills!partially."
SIRF"will"support"diversifying"A&B’s$electricity$mix$to$include$renewable$energy$technologies.

"This!will$serve$as$a$ hedge%against%volatile%fossil%fuel%prices%and$reduce!GHG#emissions.#Additionally,$investment$in$measures$to$make$ electricty( supply( more( resilient,( such( as( grid( hardening,!

clean& back=up# power# and# storage# options# will# support# long=term%financial%sustainability%goals%for%the%utility%and%the%country.!

Support'non" profits!


Non=profits(in(A&B"have"the"capacity"to"implement"their"own"projects,"but"co=financing'requirements'along'with' slow%rates%and%proportions%of%disbursements%make%the%process%difficult.%SIRF%intends%to%alleviate%this%problem!by# leveraging)and)supporting)the)work)of)NGOs.!

Support'to' vulnerable) groups!!

Currently,*home*and*building*owners,*farmers,*fishers*and*other*groups*that*are*vulnerable!to#climate#change!do# not$ have$ access$ to$ measures' that' will' help' them' mitigate!
their& impacts!

and!

build& resilience.!

The$ SIRF$ Fund$ will$ develop' a' range' of' solutions' that' will' allow' these' groups' to' access' financing' and$ insurance$ products$ through$ a$ range&of&suppliers."!

CAPITALIZATION Currently,* the* fund* has* commitments* of* about* US$9" million" from" a" variety" of" sources" (see!

Box!

1).!

It# also# has# linkages# to# various# regional)and)international)initiatives.!Moving'forward,'the$fund$will$be$capitalized$through$three!main%vehicles:!
1. International!&"Regional!Funding'Agencies!such%as!

• Green%Climate%Fund!

• Adaptation)Fund!

• Global&Environment#Facility!(GEF)!

• Caribbean(Biodiversity(Fund(!

• Bilateral(and$other$sources!!

!

2."Public'Private'Partnerships!

The$SIRF$Fund$will$catalyze$private$sector$financing$for$sound$environmental$business$initiatives$and$ecosystem$services$such!as:!
• Research(and(development*of*traditional*knowledge*and*use*of*genetic*resources,*with*the*sharing*of*benefits*to*support* conservation+and+management+of+biodiversity.!

!

3."National(funding(sources!!

The$SIRF$Fund$will$be!capitalized*by*levies*and*fees,*including!but$not$limited&to:!!

• Fee#for#tourist#visits#to#protected#areas!

• Water&levy&to&pay&for&protected&areas/watershed/waterways&!
• Carbon' tax' to' pay' for' adaptation' (priority:' drought' /' hurricanes' /' insurance' for' uninsurable*areas)!

• Interest'on'providing'small'and$medium$loans!

SUMMARY !

The#Sustainable+Island+Resource+Framework+(SIRF)'Fund!will!serve%as%the%primary%channel% for$receiving(international(funding(for(the$environment)and)climate)in#Antigua#and#Barbuda.!
The!SIRF%Fund%will$strategically$address$some$of$the$country’s"key$challenges$by!investing!in# biodiveristy,, ecosystem, services,, adaptation,) mitigation) and) risk) management) solutions) to) support' the' goals' of' economic' sustainability' and' climate' change' resilience( through' a' coordinated*approach.!

!

!

CONTACT INFORMATION: !

!

!

CONCEPT NOTE PREPARED BY: WITH SUPPORT FROM: !

H.E.$Mrs.$Diann$Black"Layne!

Ambassador)for)Climate)Change!

Director,)Department)of)the)Environment!


Ministry(of(Health(and(the(Environment!

Botanical)Gardens,)Factory)Road!

St.$John's,$Antigua!

Office:'+1.268.462.4625''or''+1.268.562.2568!

Mobile:((+1.268.464.6410!

antiguaenvironmentdivision@gmail.com!

dcblack11@gmail.com!

website!!|""facebook!!|""twitter!

Meister'Consultants'Group!

www.mc=group.com!!

Clean&Energy&Solutions&Center!

www.cleanenergysolutions.org!!!

!

!

Organization*of*American*States!

http://www.oas.org!!

!5!


BOX 1: FINANCIAL COMMITMENTS AND LINKAGES TO THE SIRF FUND COMMITMENTS!

SPPARE:"US$"2.6"million!

Caribbean(Biodiversity(Fund:"!

US$$0.2$million/year!

Inter"American)Development) Bank:!!

US$$1$million!

UNEP’s'Special'Climate' Change'Fund:!!

US$$5$million!

Energy'for'Sustainable' Development:!!

US$$0.94$million!

IWEco:'US$$0.94$million!

CREW%(small%grants):!US$$0.1$ million!

===!

FINANCIAL'LINKAGES!

Via$UNEP:$!


• UNEP%Regional%Gateway%for% Technology*Transfer*and* Climate(Change(Action( (REGATTA)!

• Caribbean(Community( Climate(Change(Center( (CCCCC)$Global$Climate$ Change'Alliance'(GCCA)' Projects!

Others'include'IUCN,'EC=JRC,% ABS$Capacity$Development$ Initiative,)SIRRM’s)Ridge)to) Reef$Demo$project$and$OECS$ Protected(Areas(and( Associated*Livelihood*(OPAAL)* project.

!