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Jamaica asks for $9.5 billion to rebuild after Melissa

Jamaica has spent many years building up a fund to deal with climate-driven disasters. The money was only enough to cover 5% of a storm's cost. Matthew Samuda, Jamaican cabinet Minister, said that Hurricane Melissa left the island with bills of $10 billion. Of this amount only $500 million could be covered by climate-preparation reserve funds. Jamaica has asked wealthy nations to offer urgent grants, investments and concessional financing at the COP30 Climate Summit in Belem. It does not want commercial rate loans, which would burden the country with additional debt, as it faces an uncertain future that is expected to bring more severe climate impacts, such as heatwaves and droughts. "We are not mendicants. In an interview given at the summit Samuda stated that Jamaica was a victim of other people's actions. He was referring to the fact that Jamaica had done little to contribute to the global warming emissions which are driving the climate change. He said Jamaica spent the last three decades working to improve its financial standing and get closer to a credit rating that is investment-grade.

It is difficult to accept that a storm, which was more intense, lasted for longer, occurred at an unusual time of the year, and brought in more rain, due to others' actions, could wipe out a large part of this success within a 24-hour period.

The COP30 summit will focus on securing funding to help developing countries prepare and adapt for the climate extremes that are coming. U.N. estimates that they will require at least $310 billion per year by 2035. "COP30 can't end without a bold outcome (on adaption)," Ana Mulio Alvarez said, policy adviser at climate think tank E3G.

CATEGORY 5-STORM HAVOC Melissa, a powerful Category-5 hurricane, hit Jamaica on October 28, bringing with it a 17-foot storm surging along with strong winds and 30 inches of rainfall that led to landslides.

Scientists found that climate change made the storm 30% more powerful than it would otherwise have been. It also increased its likelihood of hitting six times. Samuda called the damage "seismic", with 192,000 damaged buildings and the key tourism and agricultural sectors of the country hampered. He suggested that the storm be reclassified as Category 6. He said the economic damage was much greater than the COVID-19 Pandemic when the island lost 10% of its GDP.

Samuda stated that the pandemic did not "wash away bridges, destroy road, or disrupt the water supply the way this particular incident had,"

Jamaica was preparing for such an event before Melissa struck. This included a World Bank catastrophe bond that distributed $150 million, and a parametric scheme that netted another $90,000,000. The self-help measures raised about $500 million, before Melissa's estimated $10 billion damages, or just under 30% of Jamaica's total economic output.

Samuda stated that the $9.5 billion deficit was still there. (Reporting and editing by Simon Jessop, Sebastian Rocandio and Nia William)

(source: Reuters)