LocationsThe Caribbean Knows Disaster Response. Now It Must Lead on Risk Governance.
July 28, 2026
In an increasingly constrained financing environment, countries that invest in risk data, strengthen public investment systems and develop pipelines of well-prepared projects will be far better positioned to access and deploy finance effectively.
Each year, as the Atlantic hurricane season begins, governments across the Caribbean activate emergency plans, test communication systems, pre-position relief supplies and mobilise communities. These measures reflect decades of hard-earned experience in managing some of the world’s most destructive storms.
But by the time the first hurricane appears on the forecast, many of the decisions that will determine its impact have already been made.
The strength of infrastructure and public services, the quality of land-use planning, the robustness of institutions, and the availability of finance for recovery are not decisions made in the days just before landfall. They are the product of years of policy choices, public investment and governance.
The Caribbean’s next frontier is to govern risk even better, to embed resilience into the everyday decisions that shape development. This is the essence of risk-informed development—planning, investing and governing in ways that reduce future risk before a hazardous event occurs.
Risk governance: The next frontier of resilience
The Caribbean’s leadership in championing a comprehensive risk management approach dates back to the late 1990s, when it helped shape the global Hyogo Framework for Action (2000-2015), and the subsequent Sendai Framework for Disaster Risk Reduction (2015-2030). Yet the deep institutional and governance transitions required to fully capitalize on these foundations remain partially realized.
Today’s risk landscape demands we complete them. Since 1995, tropical cyclones have caused losses exceeding 10 percent of annual GDP on at least twenty occasions across Caribbean Small Island Developing States.
Hurricanes test the strength of economies, public finance, critical infrastructure, supply chains and public institutions. A single storm can disrupt tourism, damage energy and transport networks, strain health systems and reverse years of development progress. These are not simply disaster management challenges – they are development challenges.
That is why managing risk must become a core function of government, integrated into how countries plan, invest and deliver public services. Risk governance is how governments put risk-informed development into practice by embedding disaster and climate risk into every major policy decision – from budgeting and public investment to delivery of essential services like healthcare and education – ensuring that resilience is built through the everyday business of government.
Beyond Loss and Damage
The establishment of the Fund for Responding to Loss and Damage is an important milestone for climate justice and international cooperation. For vulnerable countries, including those across the Caribbean, it represents long-overdue recognition that some climate impacts cannot be avoided and that countries on the frontline should not bear the burden alone.
As of early 2026, the Fund has secured around US$800 million in global pledges, with US$340 million made available through its first operational window – an important milestone, but far below the level of financing required to meet the growing costs of climate change.
Perhaps the greatest value of the Loss and Damage Fund, beyond the resources it provides, is the dialogues it fosters on financing resilience. If climate risks are becoming systemic, then resilience can no longer depend on financing that arrives only after disaster strikes. It requires foresight that combines domestic investment, regional risk pooling, insurance, contingent finance, multilateral development finance and mechanisms like the Loss and Damage Fund into a coherent resilience financing strategy.
In an increasingly constrained financing environment, countries that invest in risk data, strengthen public investment systems and develop pipelines of well-prepared projects will be far better positioned to access and deploy finance effectively.
The Caribbean has already demonstrated the value of this approach by developing regional public goods and advancing them through dedicated institutions. The Caribbean Disaster Emergency Management Agency (CDEMA) strengthens regional coordination on disaster preparedness and management; the Caribbean Development Bank (CDB) expands investment in resilient infrastructure; the Caribbean Community Climate Change Centre (5Cs) helps countries integrate climate resilience into development planning; and the Caribbean Centre for Renewable Energy and Energy Efficiency (CCREEE) advances the region's clean energy transition.
Together with regional mechanisms such as the Caribbean Catastrophe Risk Insurance Facility (CCRIF), they form an interconnected regional resilience architecture, bringing complementary expertise to shared regional priorities while deepening leadership in their respective areas.
The real measure of success now is how effectively we translate this into everyday government decision-making to ensure resilient development outcomes.
Leading the next chapter of resilience
As risks continue to evolve, countries and regions that integrate risk into planning, public investment and finance today will be better placed to safeguard lives, livelihoods and development gains tomorrow. A clear call to action across the Caribbean countries is encouraged by regional and international actors to plan ahead for response and recovery and strengthen risk governance.
The Caribbean has earned global recognition for its leadership in disaster preparedness and response. This experience is now one of its greatest assets in protecting its own communities, and can also contribute to how risk-informed development is understood and practised around the world.