Although international climate finance has increased in magnitude, small islands face challenges in accessing adaptation finance to cope with slow- and rapid-onset events . In the Caribbean, 38% of flows were concessional loans and 62% were grants, whereas in the Atlantic and Indian oceans nearly 75% of the flows were in the form of concessional loans and 25% were grants. Solutions to these barriers are being explored and some small islands have started adopting enablers such as insurance and microfinance at both the national and local levels in responding to adaptation needs and to facilitate resiliency building. COVID-19 has caused, however, economic shock in many small islands, which will limit adaptation, undermine the attainment of Sustainable Development Goals and slow down climate resilient development transitions .
IPCC
Climate Change 2022: Impacts, Adaptation and Vulnerability
IPCC Report