CIG to seed fund for climate change projects

| 30/09/2021 | 68 Comments
Cayman News Service
Minister André Ebanks explains the Commonwealth Climate Growth Fund on CIGTV

(CNS): The Cayman Islands Government is pledging US$25 million to establish the Commonwealth Climate Growth Fund, an investment vehicle that will be domiciled in this jurisdiction and provide money for green private sector enterprises as part of the battle against climate change around the world. Investment Minister André Ebanks explained that not only will Cayman benefit from hosting the fund but it will also get $50 million from it for local climate resilience projects.

By committing the seed capital focused on businesses and technologies that deliver climate mitigation and adaptation across the Commonwealth, Cayman will be taking a step to deal with its own vulnerabilities and the challenge of financing projects to help the wider world adapt to global warning.

This Commonwealth Climate Growth Fund (Cayman) LP will be based here, managed by local financial service firms, and will be sponsored by the Commonwealth Enterprise and Investment Council (CWEIC).

“The Cayman Islands can make a truly global contribution to sustainable development and capitalise on global opportunities within this space and at the same time enable financial support for green private sector enterprises and initiatives within the Cayman Islands, contributing to our cleaner, greener future and facilitating further protection of our pristine natural assets,” Ebanks said Wednesday in an interview with the government-owned CIGTV.

“The choice of the Cayman Islands as the jurisdiction where the Commonwealth Climate Growth Fund will be established and managed makes tremendous synergistic sense. It is a timely combination of the PACT Government’s commitment to sustainability and climate resiliency, while utilising the Cayman Islands’ globally respected investment funds regime.”

Ebanks noted that the government’s $25 million contribution is not “an immediate cheque” but will be given out over a 10-year period, as it will be drawn down in proportion to total capital as investments are made in the first four to six years of the fund’s operation.

Other local investors will be offered the opportunity to commit capital, and after raising initial money locally, the fund will be placed with a bank to raise the additional targeted capital. The target size of the fund is US$1 billion, and the CIG has made its investment contingent on the fund reaching a closing of at least US$750 million.

Ebanks said that in a world without COVID, climate change would be the most important issue on the global stage, and noted that the fund will be showcased at COP26, the international climate change conference in the UK in November. He said he wanted people to see that the issue of climate change is more than a scientific challenge but an opportunity to adapt and create a greener, safer, better economic model with new jobs, and would cut the cost of living.

PACT has made developing climate change resilience the centre of its policy platform, and in a press release relating to the creation of this fund Premier Wayne Panton said he was excited about it, particularly the focus on facilitating private sector investment across the Commonwealth to support green technology, helping to reduce greenhouse gas emissions, supporting adaptation and building resilience to the adverse impacts of climate change.

Panton has spoken a great deal about local plans to adapt to what the changing world climate means for Cayman, which is mostly the impact of sea-level rise, increasing heat and stronger and more frequent weather events such as hurricanes, the first few months of this administration has seen a disappointing failure the part of Central Planning Authority to follow government policy.

In the eight weeks since the new CPA was appointed, it has made several significant decisions that conflict with the government’s climate policy and the goal of allowing only sustainable development.

These include the controversial decision to allow a cabana to be redeveloped in Boggy Sand Beach in defiance of a lawful order from the Department of Environment, and approving an application by the planning minister’s father to clear a significant swathe of mangrove habitat in North Side without any accompanying development plan.

CNS has asked the premier to discuss this issue with us, to which he has agreed and we are hoping to meet with him shortly.

See Minister Ebanks explaining the fund on CIGTV below:

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Category: Business, Climate Change, Financial Services, Science & Nature

Comments (68)

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  1. Anonymous says:

    Someone in authority elsewhere will quietly put the stranglers on this idea. Optically for the Commonwealth to establish this entity in “tax haven” Cayman is a complete and utter no-no.

    My prediction: it’ll never happen.

  2. Anonymous says:

    Cayman has a whole population that will fit into a premier league football stadium.

    Forget trying to make an impact on global climate change – it won’t make any difference whatsoever! Concentrate on completing the dump operations and keeping the beaches clean – put finances into local environmental issues.

  3. Anonymous says:

    Many things are done that makes NO sense. But always the queston, what’s in it for me, before it gets started.

  4. Anonymous says:

    Fix the dump

  5. Anonymous says:

    Wayne Wayne Wayne, its not about what you want buddy, its about what the people want.

    You are going to throw $25M into this black hole, but you have constituents who cannot work and cannot make ends meet, what are you doing about that? More how to manage your money (that you dont have) seminars with Michael Myles?

    • Anonymous says:

      Cayman must got more money than China, at least more money than they got common sense. 25 million for climate change, imagine if every country would 25 million for every 71,000 people in population. Crazy, very crazy. The M P’s should have to pay every penny of that with their own money. This Government is spending money like it going out of style.

      If Government got so much money like they spending it like its no tomorrow, then its no need to open the borders, just to let in more and more Covid.

    • Anonymous says:

      11:29pm. When since government has become a sperm downer. In my life time, it is only these recent years that people have become reliant on government for handouts. Some are too lazy to look for a job or use their hands at home to help themselves.
      Where is their divinity and resourcefulness. If you try and help yourself you will be helped but too many rather sit back and depend on handouts. Those who are in need are being deprived of their properties by their very own and government must do for 5hem. Let them turn over their properties to government is return for help.
      Too many younger people are dependent on NAU due to the fact that they have children for boys/men who are not fathers. Where is the court for deadbeat dads?

  6. Anonymous says:

    Is he aware that:
    “ The survey found “super-emitter” landfills accounted for 43% the measured emissions of the potent greenhouse gas methane – outpacing the fossil-fuel and agricultural sectors.
    NASA’s Jet Propulsion Laboratory in Pasadena and leak-detection firm Scientific Aviation have been conducting the flyovers since 2016. They found that some trash dumps operated by top U.S. landfill companies including Republic Services and Waste Management have been leaking methane at rates as much as six times the facility-level estimates from the U.S. Environmental Protection Agency (EPA).”

    Typically, one million tons of landfill waste emit approximately 432,000 cubic feet of Landfill Gas per day.

    • Anonymous says:

      Thankfully Andre spent time as a civil servant.

      Thank you Prince Charles for helping to promote the fund in 2018.

      • Anonymous says:

        That is correct, it was endorsed by the Prince when he visited. This is an initiative that was progressing under the last government. As reported by CNS in March 2020, further meetings were held in London in early 2020 with the Prince and others to move this further along. We have Eric Bush as the CO at the time, and Alden McLaughlin as Premier, and private sector folks at KPMG and elsewhere for laying the groundwork for this. It’s good that Andre understood the potential and did not scrap it.

  7. Rick says:

    If we are serious, review/renogiate our agreement with CUC and require 100% renewable energy within 5-10 years and incentivize solar, wind and batteries for homes and businesses. Declare 100% e-cars and no ICE vehicle imports by 2030. We have no ICE manufacturing base; this is easy to do.

    • Anonymous says:

      That’s pretty to think about, but you cannot mandate change without first providing the pathway toward it.

      Solar/wind power works for people on an individual basis, but struggles to keep up with big users of power. Our local solar installers will no doubt disagree with this, however it remains that when — and only when — solar becomes a savings for the people, we won’t have to be lured into using it.

      (you don’t know what you’re talking about!) Yes, I do. The majority of my home’s power comes from solar and a wind generator. If I were wealthy and didn’t care about the return on my investment, I would happily go completely off-grid. I scarcely broke even before I required replacement of expensive components. Still, after nearly constant monitoring and adjusting, it has been a good investment.

      Likewise for e-cars. How are they charged? Hopefully with efficient solar/wind power. We don’t seem to have that yet, and when we do, people will invest in that direction.

      I hope we can accomplish this, and these three islands seem well poised to be mostly alternative energy driven.

      Let us create the economically viable pathway for all residents to ‘go green’ and then and only then legislate it happening. For God’s sake, many of our residents are currently struggling just to make ends meet with little capital toward investment.

      • Anonymous says:

        I have those windmills all around me. Please don’t fall for the bait. They do not produce enough power to even pay for themselves, they require maintenance, they on occasion even catch fire and burn, they are a visual blight on the landscape, they kill birds, they emit EMF to a level that even our airport can’t use their radar. The only people who make money on windmills is the people selling them.

    • Anonymous says:

      Yep and use that money to buy land for protection

    • Anonymous says:

      You can’t afford to pay for it.

    • Anonymous says:

      Easy to say, expensive to do.

    • Anonymous says:

      You do realize that OfReg and Government have complete control of what CUC or any other Utility company does right?

    • Anonymous says:

      100% renewable from cuc at cheaper cost.

  8. Anonymous says:

    Andre you are a breath of fresh air but what an inefficient way of doing things. Take that 25 million buy barefoot beach from Dart in East End and buy some undeveloped pristine habitat with mangroves from other would be reckless developers if you want to protect our children.

  9. Anonymous says:

    “facilitating further protection of our pristine natural assets” … or what’s left of it! Oh well, better late than never.

  10. Campaign2024 says:

    Would like more clarity on how this fund will be used besides the obvious ie certain private owned businesses getting all the benefits. Typically their cronies are already lined up and advised in advance so that they can all open companies or front for the companies to make money. Hey can someone FOI how many “green” startups occurred these past couple of months?

  11. Anonymous says:

    Nice to see they have their priorities. Clearly fixing the lobal climate is Caymans top problem at the moment.

  12. B. Wary says:

    Is our government really going to get involved in this??? To me it appears to be impracticable. It has the possibility of becoming the greatest scam in the history of the Cayman Islands! First of all, why are we involved? There are many countries that have more experience with something like this. Why does the Cayman Islands want to lead the parade? If it sounds too good to be true, it probably isn’t.

    • Anonymous says:

      I share your concern, however is it possible you are reacting to the ‘climate change projects’ and didn’t read the entire article?

      It is mostly talking about renewable energy and conservation, both of which I whole-heartedly support. None of the ‘carbon-credit’ schemes.

      Do I worry that various MP relatives will use insider information to put themselves at the ground floor of emerging businesses? Yes. That is always a concern, having seen it happen with other emerging technologies.

    • Anon says:

      Sovereign funds can be used to steal a nations assets under the guise of investments for the public good. See 1MDB

  13. Anonymous says:

    Who are the local service providers and are they Caymanians?

  14. Anonymous says:

    Potentially a really smart move at least from a PR perspective.

  15. Anonymous says:

    who are the local service providers?

  16. Anonymous says:

    How about putting solar panels on Govt buildings as a starter?

  17. Anonymous says:

    championing climate change, meanwhile we destroy our limited natural resources. you can’t make this chit up.

  18. anon says:

    This can’t be worse than our investment in Caricom — or can it?.

  19. Anonymous says:

    simple curtail development and limit it by district to those who live in them …. it is only a community based planning and development focus that will have any impact on the “cowboy developers” we have let into our communities whose values are not about our communities but just their pockets and “status” ….

  20. Anonymous says:

    Stop sowing seeds and open up the borders so people can get on with their lives.

  21. C'Mon Now! says:

    For the love of all that is holy NO! Please don’t do this.

    This will be another White Elephant and is ripe for corruption in the allocation of funds.

    $25m does not “SEED” a $1bn fund and what local investment firms are qualified to be managing a $1bn green fund across the Commonwealth countries?

    For Andre specifically how does a initial investment of $25 over 10 years result in $50m for local climate resilience projects. Do those project generate a return for investors? If so would capital be deployed to those projects without Cayman’s investment into the fund?

    • Anonymous says:

      Woke agenda item1 – LGBTQ parade – check

      Woke agenda item2- masks in public – check

      Woke agenda item3 – gender equality regardless of merit or qualifications – check

      Woke agenda item4 – Climate resiliency which they no clue what it means – check

    • Anonymous says:

      Just send the money to Jeff Webb. Cut out the middlemen.

  22. Anonymous says:

    Political hypocrisy again. Ten years for full pledge injection of funds into this initiative and CUC will still be at 80% fossil fuel usage. Our natural lands and coral, any guesses what fraction of what we have now will still be around? At CPA’s current trajectory Grand Cayman will be mostly concrete and blacktop by 2030.
    PACT you are truly taking the mick, you really should have waited until next April 1st to announce this comedy sketch.

    • Anonymous says:

      The views of all in opposition are expected and are duly noted.

      Forge ahead Andre, you are not woke.

      Time they are changing…

  23. Anonymous says:

    Tell the CPA to stop allowing people to remove vast amounts of mangroves. How about that for a start!

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