WILLEMSTAD – Climate change will remain a central research priority for the Central Bank of Curaçao and Sint Maarten (CBCS) over the next three years, as rising sea levels, extreme weather and energy transition risks increasingly threaten economic and financial stability.
The CBCS plans to assess both physical risks, such as hurricanes and droughts, and transition risks linked to climate policies and green energy shifts. Research will examine how climate shocks affect growth, public finances, the banking sector and insurance markets.
The bank will also explore climate-resilient investment, green financing mechanisms and the potential development of climate stress testing frameworks tailored to Caribbean economies. According to the CBCS, understanding climate risk is essential to safeguarding long-term stability in the monetary union.