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Pacific Island Climate Change “Privatization” Alliance

February 7, 2015

View_of_Nauru_airportFrom the SPC website:

The Republic of Nauru has launched its first ever national framework aimed at increasing the Pacific nation’s resilience to climate change and disaster risk.

“The Global Climate Change Alliance: Pacific Small Island States project is an SPC-European Union joint initiative, made possible with European Union funding of FJD $26.76 million (€11.4 million or US $12.8 million) It is implemented regionally by SPC and nationally by each of the nine participating governments in Cook Islands, Federated States of Micronesia, Kiribati, Marshall Islands, Nauru, Niue, Palau, Tonga and Tuvalu.”

What this means, according to the SPREP Pacific Islands Framework of Action on Climate Change (which the GCCA framework), is that for the cost of a Beverly Hills mansion, development and investment partners have opened the doors to private partnerships that include not only the climate related, biotech or R&D sectors, but to the insurance and re-insurance investment schemes as well (hence disaster risk).

What these climate-related agreements do is perpetuate the neoliberal investment process of allowing Wall St. to capitalize and leverage more debt on the customary rights of land and ocean resources.

And so one of the ways that this new paradigm shift in investment is impacting financial services is that hedge funds, for example, are looking for development opportunities to privatize more resources, because the loss of these resources, is a loss of “anticipated future profits” and whatever these “anticipated future profits” are, can easily be accounted for through the investment of these Catastrophe Bonds. And large hedge fund managers have capitalized heavily on these Cat Bonds when disasters occur.

So in this new profit-driving reinsurance scheme, catastrophes and severe weather have become financial assets to investors because they can drive this narrative of fear to sell these trade investments and services to Pacific Island Countries, which are very susceptible to severe weather and climate change.

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