WILLEMSTAD – Climate change is no longer just an environmental issue. It has become an economic and financial stability risk for Curaçao.
That warning comes from the new 2026–2028 research agenda of the Centrale Bank van Curaçao en Sint Maarten, which identifies climate change as one of its highest strategic priorities.
The CBCS says rising sea levels, stronger storms and prolonged droughts pose direct risks to economic growth, public finances and the financial sector.
For small island economies like Curaçao, those risks are particularly severe.
The bank says future research will focus on measuring the macroeconomic impact of climate change under different scenarios.
That includes studying the economic cost of hurricanes, coastal erosion and infrastructure damage.
The CBCS also wants to explore green financing opportunities, including renewable energy investments and climate-resilient infrastructure.
According to the report, climate-smart investments could improve economic sustainability while reducing long-term vulnerabilities.
However, the bank warns these investments must be carefully designed to avoid increasing fiscal pressure.
The CBCS is also considering climate stress tests for banks and insurers to assess how prepared the financial system is for environmental shocks.
The report makes clear that climate policy is now financial policy.