Sat | Dec 28, 2024

JNSBL open for climate business

Published:Wednesday | February 22, 2017 | 12:00 AMPetre Williams-Raynor
Contributed
Seated from left: Audrey Sewell, permanent secretary in the Ministry of Economic Growth and Job Creation; Milverton Reynolds, managing director of the Development Bank of Jamaica; Gillian Hyde, general manager of JNSBL; and Allison Rangolan McFarlane, chief technical director at the Environmental Foundation of Jamaica sign the Memorandum of Understanding to facilitate the administration of the Climate Change Adaptation Line of Credit. Looking on are Minister Daryl Vaz, who has responsibility for land, environment and climate change in the Ministry of Economic Growth and Job Creation, and Therese Turner-Jones, general manager for the Inter-American Development Bank, Caribbean Department.

Jamaica National Small Business Loans (JNSBL) is looking to vamp up interest in its US$2.5-million adaptation to climate change line of credit, catering exclusively to small and medium size enterprises (SMEs) from the agriculture, tourism and related sectors.

"In the coming months, JNSBL will be strengthening its efforts through collaborations with related parties in the tourism and agro value chain to further promote the special loan facility," said Jacqueline Shaw Nicholson, JNSBL's communications and client services manager.

"We will also support the education of persons on matters of climate change as well as adaptive and mitigation techniques available to them," she told The Gleaner.

So far, SMEs have drawn down on J$19.5 million of the available funds to finance the installation of rainwater harvesting systems, drip irrigation systems, water recirculation systems, solar water heating system, and energy smart system.

The first loan was approved in December, following the official launch of the line of credit earlier in the year.

"JNSBL is pleased with the take up of the loan facility so far, with 51 per cent to the Tourism sector and 49 per cent to the agro sector in disbursements," said Shaw Nicholson.

For those persons wishing to drawn down on the funds, criteria for selection include not only that they be operating a tourism or agro-related business, but also that proposed projects must enhance their capacity to cope better with the increased changes and effects of climate change.

"Collateral is required and can include machinery and equipment of trade or to be purchased, motor vehicles that can be comprehensively insured or registered titles as well as lien on deposits, guarantors are also acceptable," revealed Shaw Nicholson.

The maximum loan amount that can be awarded is $5 million, with an interest rate of four per cent per annum on the reducing balance.

However, Shaw Nicholson said, "borrowers can also utilise other loan facilities available at JNSBL to further support project implementation where needed".

The line of credit is one of two financing mechanisms under the Pilot Programme for Climate Resilience. The other is the Special Climate Change Fund (SCCAF) that is being administered by the Environmental Foundation of Jamaica (EFJ).

The SCCAF finances adaptation and disaster risk-reduction projects and cover associated programme management cost.

It is accessible by community-based organisations, other civil-society groups and select public-sector agencies specifically for "clearly defined high-priority activities, particularly related to building the resilience of the natural environment and contributing to livelihoods protection and poverty reduction", according to project documents.

The EFJ recently awarded 18 grants to the tune of $84.9 million to undertake projects designed to boost the ability of communities to respond to climate change threats.

Counted among those threats are increased and/or more severe extreme weather events, such as hurricanes and droughts, which destroy agricultural and tourism livelihoods.

Climate change also brings warmer temperatures, which, too, have negative implications for not only human livelihoods but also marine life. This is given, as one example, the negative effects of increased sea surface temperatures on coral reefs.

It is a look at these implications that, at least in part, provides the basis of JNSBL's decision to pursue administration of the line of credit under the PPCR.

"Increasingly, agro-related activities were experiencing negative changes in production yield, both in quality and quantity, which affected their ability to earn as per usual. We, therefore, wanted to assist with educating our clients and staff on matters of climate change and assist them to obtain the systems and techniques necessary to adequately respond to matters of climatic variability," Shaw Nicholson said.

"JNSBL is also cognisant of the wider threat climate change poses to food security and as a part of our own mandate to support economic sustainability, JNSBL wanted to provide well needed support to the MSME sector to adequately mitigate and adapt for sustainability," she added.

pwr.gleaner@gmail.com