WILLEMSTAD – The Centrale Bank van Curaçao en Sint Maarten (CBCS) is warning that climate change poses growing risks not only to the environment, but also to economic stability, inflation, financial systems, and critical infrastructure in both Curaçao and Sint Maarten.
In a newly published policy note titled “Designing Effective National Climate Adaptation Plans in Curaçao and Sint Maarten,” the central bank states that although the islands contribute very little to global greenhouse gas emissions, they are highly vulnerable to climate-related disasters because of their geographic location and small size.
According to the report, climate-related extreme weather events can affect businesses, employment, labor supply, electricity production, infrastructure, and overall economic activity. The CBCS warns that these disruptions could lead to higher inflation, greater price volatility, and weaker financial stability across the monetary union.
The report emphasizes the importance of developing National Adaptation Plans (NAPs), which are long-term strategies designed to help countries prepare for climate change impacts. These plans are intended to coordinate adaptation measures across sectors while integrating climate resilience into national development policies and budgets.
The CBCS notes that many Caribbean countries, including Trinidad and Tobago, Saint Lucia, Grenada, and Suriname, have already developed climate adaptation plans, while Curaçao and Sint Maarten are still in the process of creating their own frameworks.
The bank also stresses that tourism-dependent economies such as Curaçao and Sint Maarten face particularly severe risks because climate disasters can damage tourism infrastructure and reduce visitor arrivals.
The policy note identifies four key pillars for successful climate adaptation planning: clear long-term planning, continuous evaluation of adaptation measures, strong governance and implementation systems, and alignment with broader economic and social development goals.
The CBCS argues that adaptation planning should not only focus on physical infrastructure such as seawalls and drainage systems, but also on broader economic, social, and institutional resilience.
The report concludes that both Curaçao and Sint Maarten must now move from awareness to implementation by developing concrete actions, assigning responsibilities, securing financing, and establishing monitoring systems to ensure climate resilience over the long term.