## 1jamea2023003

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### Mission, timeline, and stakeholder engagement
- At the request of the Ministry of Finance and the Public Service (MOFPS) of Jamaica, an IMF Fiscal Affairs Department (FAD) team conducted a remote Climate Public Investment Management Assessment (C-PIMA).
- Mission phases:
  - Data and stakeholder collection: December 5–15, 2022.
  - Data analysis, formulation of recommendations, and report writing: March 2023.
- Mission team: led by Nicoletta Feruglio; comprised Mr. Sandeep Saxena and Ms. Sylke von Thadden-Kostopoulos (all FAD); supported by Ms. Letitia Li (Research Assistant, FAD).
- Primary government and institutional contacts engaged: MOFPS divisions (Economic Management Division - Fiscal Policy Management; Public Expenditure Division - PIAB; Public Expenditure Policy Coordination Division - Asset Management and Financial Systems and Procedures; Public Enterprise Division), PIOJ, Auditor General Department, MEGJC (Climate Change Division), multiple sectoral ministries, ODPEM, Rural Water Supply Limited, NEPA, National Water Commission, National Works Agency, DBJ, Jamaica Environmental Trust, JSIF.

### Key context, vulnerabilities, and sectoral exposure
- Jamaica ranks 47th out of 191 countries in the 2023 INFORM Risk index.
- Climate projections and observed trends:
  - In a business-as-usual (BAU) global emission scenario (RCP 4.5), Jamaica is projected to face a 1.54°C increase of mean temperature by 2100 relative to the 1986–2005 baseline.
  - Expected impacts: more heatwaves; more irregular rainfalls with heightened hazards of droughts or flooding; stronger tropical cyclones (intensity increase); rising sea levels.
- Sectoral exposure and economic sensitivity:
  - Tourism sector equivalent to some 20 percent of GDP and highly sensitive to climate effects.
  - Agriculture is highly sensitive to higher temperatures, rising sea levels, and volatile precipitation.
- Historical disaster losses and risk quantification:
  - Hurricanes Ivan (2004) and Dean (2007) caused damages of US$580 million and US$329 million each (or 8 and 3 percent of GDP, respectively).
  - Tropical storm Nicole (2010) caused damages of US$239 million (or 2 percent of GDP).
  - For a one in 100 years event, fiscal losses are expected to exceed US$ 1,729 million (roughly about 10 percent of GDP); there is a one percent probability in any year that losses will exceed US$1,729 million.
  - Annual average fiscal cost of natural disasters in Jamaica for 2010–2017 was about 0.84 percent of GDP or around J$16 billion (US$121 million).
- Energy and emissions:
  - Jamaica contributed less than 0.03 percent of total GHG emissions in 2020.
  - Over 85 percent of Jamaica’s electricity is generated from fossil fuel—mostly heavy fuel oil.
  - In FY 2021/22, fuel commodity imports represented 11 percent of GDP and were twice the level of Jamaica’s goods exports.
  - Increasing renewable electricity generation to about half by 2050 percent would allow the country to meet more than half of its emission cuts commitments (statement in source).

### C-PIMA high-level assessment (Institutions C1–C5)
- Overall finding: Climate risks and natural disasters pose major threats to Jamaica’s public infrastructure and there is considerable scope to strengthen climate-responsive public investment management.
- Institutional strengths and reform priorities:
  - C1 Climate-aware planning: Institutional Strength: Medium; Reform Priority: Medium.
    - MTF 2021-2024 and some sectoral plans consistent with NDC; National Building Code explicitly addresses climate risks; land use and physical planning regulations do not; no centralized guidance provided.
  - C2 Coordination between entities: Institutional Strength: Low; Reform Priority: Medium.
    - Institutional framework fragmented; no coordination between central and local governments for climate-sensitive investment planning; oversight framework does not promote consistency between public bodies’ climate-related investments and climate policies.
  - C3 Project appraisal and selection: Institutional Strength: Low; Reform Priority: High.
    - Appraisal and selection do not integrate climate-related analysis via standardized methodology; PPP contracts do not require climate impacts to be reflected.
  - C4 Budgeting and portfolio management: Institutional Strength: Low; Reform Priority: Medium.
    - Climate spending is not identified in the budget; no requirement for ex post reviews or external audits of projects’ climate adaptation/mitigation impact; asset registers do not require identification of climate vulnerability.
  - C5 Risk management: Institutional Strength: Medium; Reform Priority: High.
    - No national disaster risk management strategy in place that analyzes public infrastructure exposure; some ex ante financing mechanisms exist; fiscal risk analysis does not incorporate climate change risks to public infrastructure assets over the medium term.

### Eight high-priority recommendations (as presented)
- Improve the climate informed medium-term fiscal and budget framework to guide budget preparation.
- Strengthen the climate change strategic guidance of planning for capital budgeting.
- Revise the framework for private and public bodies participation in climate smart infrastructure.
- Develop climate change project appraisal and selection methodologies and apply them consistently to all projects, regardless of financing source.
- Enhance transparency on green and resilient investment projects in budget documentation.
- Introduce climate change arrangements for the ex-post evaluation of investment projects.
- Develop a climate smart asset register and ensure adequate funding for maintenance of assets.
- Ensure that the legal framework and staff capacity are supportive of climate change PIM reforms.

### Action plan highlights and implementation horizon (2023–2026)
- Integrate disaster risks to public infrastructure assets and other climate-related risks in fiscal risk analysis (lead: MOFPS).
- Finalize and approve the National Natural Disaster Risk Financing Policy (lead: MOFPS).
- Develop centralized guidance on integrating climate change perspectives into sector-specific public investment planning (lead: PIOJ, MEGJC).
- Revise land use and physical planning legislation to integrate climate change perspective (lead: NAPA).
- Finalize and approve revised PPP policy including climate change requirements from project design to contract management (lead: MOFPS, DBJ); revise PPP Standard Operating Procedure Manual (lead: MOFPS, DBJ).
- Develop standardized methodology for climate change analysis in project appraisal and establish transparent project selection criteria including climate criteria (lead: MOFPS; PIOJ).
- Gradually introduce green budgeting identifying and tracking climate-related expenditures with MOFPS quality review and include climate tags in FMIS coding structure (lead: MOFPS, LMs).
- Interface the FMIS with the Public Investment Management Information System (PIMIS) (lead: MOFPS).
- Develop methodology and requirements for ex post reviews of climate-relevant infrastructure projects and conduct ex post reviews on a selected number of major projects annually (lead: MOFPS, PIOJ; MOFPS, LMs).
- Develop methodology to conduct climate change audits and include at least 2 climate change audits of major public investment projects each year in Auditor General’s work plan (lead: AG).
- Develop a centralized register of infrastructure assets with climate-related information and standardized methodology for estimating current and capital maintenance needs including climate risks (lead: MOFPS, LMs).
- Revise the Financial Administration and Audit Act (FAA) to include climate change requirements throughout the project cycle (lead: MOFPS).
- Develop a Climate Change Law to clarify roles, responsibilities and coordination (lead: MEGJC, MOFPS).
- Strengthen PIOJ, PIAB, DBJ and Public Enterprise Division capacities and strengthen staff capacity on mainstreaming climate change into PIM across central government and municipal corporations.

### Coordination, local government, and public bodies
- Finding: Planning and implementation of Municipal Corporations’ (MCs) capital spending is not coordinated with central government either in general or from a climate-change perspective.
- LoCAL initiative under JA-NAP aims to:
  - increase awareness and capacities for climate change adaptation at the local level and the integration of climate change adaptation into local government plans and budgets;
  - establish a performance-based climate resilience top-up financing mechanism.
- Regulatory gaps:
  - The 2012 amended Public Bodies Management and Accountability Act does not indicate alignment of public bodies’ infrastructure with national climate goals.
  - Public bodies are explicitly covered in the NDC and named as contributors to specific NDC commitments (examples listed in source).
- Recommendation: Streamline institutional setup for the climate change agenda; provide a process to coordinate both mitigation and adaptation related investments; expand PIOJ role to coordinate climate-related investments and provide technical guidance with MOFPS and CCD; revise legal and supervisory framework governing public bodies to ensure alignment with national climate policy.

### Project appraisal, PPPs, and selection
- Appraisal methodology findings:
  - EIA regulations under the NRCA Act do not provide specific guidance on climate change analysis.
  - FAA (2014, Section 48J and new Fourth Schedule), 2019 Financial Instructions, and 2016 PIMS guidelines do not provide criteria for assessing climate impacts of/on investment projects.
  - PIAB developed a climate sensitive template requiring CCORAL screening at project concept stage; projects prone to climate risks require a climate impact assessment at proposal stage, but no mandated standard methodology exists.
  - Development partner–funded projects (CDB, IADB, WB) undergo climate vulnerability assessment at appraisal.
- PPP framework findings:
  - PPP framework lacks explicit climate risk allocation clauses; DBJ and Public Enterprise Division are revising PPP policy to include climate requirements across project lifecycle.
  - GOJ will adopt an IADB tool to incorporate climate policy actions into PPP arrangements; tool tested on two WB-sponsored projects with encouraging outcomes.
- Project selection findings:
  - No explicit climate-related criteria applied to selection of investment projects; no standardized methodology for inclusion of climate-related budget-funded capital projects in PSIP.
  - Responsibility for transparent ranking of appraised feasible projects moved from PIAB to PIOJ, which is working to adopt selection criteria that might include climate criteria.
- Recommendation:
  - Adopt a standard methodology for climate-related analysis at appraisal stage following CCORAL pre-appraisal adoption.
  - Define project prioritization criteria and methodology integrating climate-related criteria.
  - Plan training on the new project appraisal and selection framework.

### Budgeting, portfolio management, and asset management
- Budget identification and tracking:
  - Climate-related public investment spending is not identified in the budget.
  - IADB providing technical assistance for adoption of climate budget tagging.
  - Proposal: tag mitigation and adaptation expenditures using functional classification, adding a sub-function to ‘Environmental protection’ with three categories: mixed, mitigation and adaptation; proposed classification aligns with COFOG.
  - MOFPS developed a 4-year implementation road map for climate budget tagging reform.
  - Current tracking program ‘Disaster Management’ (Program 005; reclassified Program 015 in FY20/21) allocations: US$10.2 million in FY2019/20 and US$50.4 million in FY2020/21.
- Ex-post reviews and audits:
  - No legal requirement or specific methodologies to undertake ex-post reviews or external audits of capital projects’ climate outcomes.
  - FAA (new Fourth Schedule (I (b))) and 2016 PIMS guidelines regulating ex-post assessment do not refer to climate change reviews.
  - Auditor General undertakes performance and financial audits, but legislation regulating external audit does not refer to climate change audits.
- Asset management:
  - No policies for estimating standard or climate risks related maintenance of assets prior to 2020; comprehensive asset management policy approved in 2020.
  - PXPC Division within MOFPS is identifying public assets and setting up a centralized comprehensive public asset inventory in compliance with 2020 asset management policy.
  - Identified assets should include geo-referenced information (exact location, construction type, number of stories) to inform maintenance and reconstruction prioritization and build an exposure database integrated with hazard and vulnerability models to establish a fiscal disaster risk profile.
  - Ministry of National Security purchased a public asset management information system to be adopted and rolled out by PXPC Division.
- Recommendation:
  - Proceed with climate budget tagging and integrate climate-related risks into asset management policy and practices.
  - Use geo-referenced asset inventory to adjust maintenance planning and funding to reduce long-term maintenance costs and increase asset life.

### Risk management, financing instruments, and fiscal disclosure
- National strategy and institutional framework:
  - Jamaica does not have a national disaster risk management strategy that analyzes key climate risks to public infrastructure assets, though disaster plans and acts (1997 National Disaster Plan; 2015 DRM Act) address related risks.
  - ODPEM developed a Comprehensive Disaster Management program covering preparedness/response, recovery/rehabilitation, and mitigation phases.
- Existing financing instruments and capacities:
  - Contingencies Fund: aggregate ceiling raised from J$100 million (US$652 thousand) to J$10 billion in 2019 (US$ 65.12 million); two-stage capitalization totalling J$4.6 billion (US$30 million).
  - National Disaster Fund (NDF): currently capitalized at US$2.2 million and receiving annual injection of around J$500 million (US$3.2 million); authorities considering refocusing NDF to local events and preventive use.
  - CCRIF-SPC: annual CCRIF insurance premia around US$16mn/year; 2021 coverage up to US$248.7million for specified hazards.
  - CAT bond: Jamaica sponsored a catastrophe bond placed in July 2021, securing US$185 million.
  - Rapid credit facilities: IADB contingent line (US$285 million remain available); IMF Rapid Financing Instrument used in 2020 for COVID response.
  - Insurance coverage for public companies limited due to lack of public infrastructure asset inventory and valuation.
  - GOJ considering establishing a National Disaster Reserve Fund (NDRF) for catastrophic national level events to be defined in the FAA in relation to impact as a percentage of GDP.
  - MOFPS finalizing the National Disaster Risk Financing Policy to adopt a comprehensive financing approach including use of an expanded set of insurance instruments.
- Fiscal disclosure and quantification gaps:
  - Disaster risks related to public infrastructure assets are not compiled and published in fiscal policy documents.
  - Fiscal policy papers and fiscal risk statements identify natural disaster risks but do not quantify them and other climate-related and transition risks.
- Recommendation:
  - Develop methodologies to incorporate climate-related risks to public infrastructure assets in fiscal risk analysis, including quantitative assessments where feasible.
  - Assess explicit and implicit contingent climate-related liabilities to inform selection of insurance and ex-ante financing instruments.
  - Establish or strengthen ex-ante financing mechanisms (for example, contingency appropriations and other financing mechanisms) to manage the exposure of the stock of public infrastructure to climate-related risks.

### Legal framework, staff capacity, and information systems
- Legal and regulatory framework (Reform Priority: High):
  - Comprehensive policy framework exists (Vision 2030, Climate Change Policy Framework, NDCs, IRP, DRM Act) but has not been fully translated into an updated legal and regulatory framework; 2021 update of Climate Change Policy Framework not yet approved.
  - Recommendation: Enact an overarching Climate Change Law to define clear roles and responsibilities and operationalize the NDC and the developing NAP; mainstream climate considerations throughout the PIM FAA sections.
- PIM staff capacity (Reform Priority: High):
  - Need to strengthen PIOJ capacity for climate-aware planning guidance and PIAB capacity in MOFPS for climate-analysis in feasibility studies.
  - Most MDAs and public bodies rely on external expertise for feasibility studies.
  - Support needed for MOFPS Public Expenditure Division to implement climate budget tagging and interface with FMIS.
  - Fiscal Policy Management Unit staff require targeted capacity development and peer-to-peer training to integrate climate risks in fiscal risk analysis.
- Information systems and climate budget tagging (Reform Priority: Medium):
  - Climate budget tagging development is ongoing; MOFPS to support adoption and integration with FMIS.
  - PIMIS (with World Bank support) has three modules (PSIP submission module, reporting module, portfolio analysis module); PSIP module almost completed and includes the CCORAL tool.
  - PIMIS is to interface with FMIS and the Jamaica InvestmentMap (geo-referenced system showing responsible agency, cost and status of implementation of projects).

*Source: https://www.imf.org/-/media/files/publications/cr/2023/english/1jamea2023003.pdf*

### PREFACE _________________________________________________________________________________________ 6

### PREFACE

### Mission and timeline
- At the request of the Ministry of Finance and the Public Service (MOFPS) of Jamaica, an IMF Fiscal Affairs Department (FAD) team undertook a remote Climate Public Investment Management Assessment (C-PIMA).
- Mission phases:
  - Data and stakeholder collection: December 5–15, 2022.
  - Data analysis, formulation of recommendations, and report writing: March 2023.
- Mission team: led by Nicoletta Feruglio; comprised Mr. Sandeep Saxena and Ms. Sylke von Thadden-Kostopoulos (all FAD); supported by Ms. Letitia Li (Research Assistant, FAD).

### Stakeholder engagement
- MOFPS counterpart contacts and divisions engaged: Economic Management Division - Fiscal Policy Management; Public Expenditure Division - Public Expenditure and the Public Investment Appraisal Branch (PIAB); Public Expenditure Policy Coordination Division - Asset Management and Financial Systems and Procedures; Public Enterprise Division.
- Other institutions consulted: Planning Institute of Jamaica (PIOJ); Auditor General Department; Ministry of Economic Growth and Job Creation (Climate Change Division); Ministries of Science, Energy and Technology, Transport and Mining, Industry, Commerce, Agriculture and Fisheries; Local Government and Community Development - Office of Disaster Preparedness and Emergency Management (ODPEM); Rural Water Supply Limited; National Environment and Planning Agency; National Water Commission; National Works Agency; Development Bank of Jamaica (DBJ); Jamaica Environmental Trust; Jamaica Social Investment Fund (JSIF).
- Special acknowledgments: Mesdames Darlene Morrison and Diane Black and Mr. Trevor Anderson for support to the mission.

### Key context and climate vulnerabilities
- Jamaica ranks 47th out of 191 countries in the 2023 INFORM Risk index.
- Climate projections and observed trends:
  - In a business-as-usual (BAU) global emission scenario (RCP 4.5), Jamaica is projected to face a 1.54°C increase of mean temperature by 2100 relative to the 1986–2005 baseline.
  - Expected climate impacts include more heatwaves, more irregular rainfalls with heightened hazards of droughts or flooding, stronger tropical cyclones (intensity increase), and rising sea levels.
- Sectoral exposure and economic sensitivity:
  - Tourism sector equivalent to some 20 percent of GDP and highly sensitive to climate effects.
  - Agriculture is highly sensitive to higher temperatures, rising sea levels, and volatile precipitation.
- Historical disaster losses:
  - Two hurricane events in the early 2000s caused losses equivalent to 8 and 3 percent of GDP, respectively.
- Energy and emissions:
  - Jamaica contributed less than 0.03 percent of total GHG emissions in 2020.
  - Over 85 percent of Jamaica’s electricity is generated from fossil fuel—mostly heavy fuel oil—creating dependence on imported petroleum products.
  - Increasing renewable electricity generation to about half by 2050 percent would allow the country to meet more than half of its emission cuts commitments and bring wider economic benefits.

### Assessment summary (C-PIMA high-level findings)
- Overall finding: Climate risks and natural disasters pose major threats to Jamaica’s public infrastructure and there is considerable scope to strengthen climate-responsive public investment management.
- Institutional strengths and weaknesses (Table 1 / phases C1–C5):
  - C1 Climate-aware planning: Medium. MTF 2021-2024 and some sectoral plans are consistent with NDC. National Building Code explicitly addresses climate risks; land use and physical planning regulations do not; centralized guidance is not provided. Reform priority: Medium.
  - C2 Coordination between entities: Low. Institutional framework fragmented; no coordination between central and local governments for climate-sensitive investment planning; oversight framework does not promote consistency between public bodies’ climate-related investments and climate policies. Reform priority: Medium.
  - C3 Project appraisal and selection: Low. Appraisal and selection do not integrate climate-related analysis via standardized methodology; PPP contracts do not require climate impacts to be reflected. Reform priority: High.
  - C4 Budgeting and portfolio management: Low. Climate spending is not identified in the budget; no requirement for ex post reviews or external audits of projects’ climate adaptation/mitigation impact; asset registers do not require identification of climate vulnerability. Reform priority: Medium.
  - C5 Risk management: Medium. No national disaster risk management strategy in place; some ex ante financing mechanisms exist; fiscal risk analysis does not incorporate climate change risks to public infrastructure assets over the medium term. Reform priority: High.

### Eight high-priority recommendations (as presented)
- Improve the climate informed medium-term fiscal and budget framework to guide budget preparation.
- Strengthen the climate change strategic guidance of planning for capital budgeting.
- Revise the framework for private and public bodies participation in climate smart infrastructure.
- Develop climate change project appraisal and selection methodologies and apply them consistently to all projects, regardless of financing source.
- Enhance transparency on green and resilient investment projects in budget documentation.
- Introduce climate change arrangements for the ex-post evaluation of investment projects.
- Develop a climate smart asset register and ensure adequate funding for maintenance of assets.
- Ensure that the legal framework and staff capacity are supportive of climate change PIM reforms.

### Action plan highlights and implementation horizon (Table 2)
- Key actions with staging across 2023–2026 include:
  - Integrate disaster risks to public infrastructure assets and other climate-related risks in fiscal risk analysis (lead: MOFPS).
  - Finalize and approve the National Natural Disaster Risk Financing Policy (lead: MOFPS).
  - Develop centralized guidance on integrating climate change perspectives into sector-specific public investment planning (lead: PIOJ, MEGJC).
  - Revise land use and physical planning legislation to integrate climate change perspective (lead: NAPA).
  - Finalize and approve revised PPP policy including climate change requirements from project design to contract management (lead: MOFPS, DBJ) and revise PPP Standard Operating Procedure Manual (lead: MOFPS, DBJ).
  - Develop standardized methodology for climate change analysis in project appraisal and establish transparent project selection criteria including climate criteria (lead: MOFPS; PIOJ).
  - Gradually introduce green budgeting identifying and tracking climate-related expenditures with MOFPS quality review and include climate tags in FMIS coding structure (lead: MOFPS, LMs).
  - Interface the FMIS with the Public Investment Management Information System (PIMIS) (lead: MOFPS).
  - Develop methodology and requirements for ex post reviews of climate-relevant infrastructure projects and conduct ex post reviews on a selected number of major projects annually (lead: MOFPS, PIOJ; MOFPS, LMs).
  - Develop methodology to conduct climate change audits and include at least 2 climate change audits of major public investment projects each year in Auditor General’s work plan (lead: AG).
  - Develop a centralized register of infrastructure assets with climate-related information and standardized methodology for estimating current and capital maintenance needs including climate risks (lead: MOFPS, LMs).
  - Revise the Financial Administration and Audit Act (FAA) to include climate change requirements throughout the project cycle (lead: MOFPS).
  - Develop a Climate Change Law to clarify roles, responsibilities and coordination (lead: MEGJC, MOFPS).
  - Strengthen PIOJ, PIAB, DBJ and Public Enterprise Division capacities and strengthen staff capacity on mainstreaming climate change into PIM across central government and municipal corporations.

### Cross-cutting observations
- Progress exists in developing a comprehensive climate change policy framework and in planning for disaster risk financing.
- Key gaps: weak coordination across central government and municipal corporations; no institution positioned strategically to lead adaptation or mitigation investments; regulatory and oversight frameworks do not promote consistency between public bodies’ climate-related investments and national climate policies; lack of climate risk allocation framework in PPPs; project selection procedures lack standardized climate analysis; climate-oriented infrastructure spending is not tracked in the budget; no ex-post reviews or external audits of projects’ climate outcomes; climate impact not integrated into public asset management.

*Source: https://www.imf.org/-/media/files/publications/cr/2023/english/1jamea2023003.pdf*

### 2. Jamaica’s high vulnerability to natural disasters poses substantial risk to the country’s

### 1jamea2023003 - 2. Jamaica’s high vulnerability to natural disasters poses substantial risk to the country’s

### Jamaica’s historical and projected disaster damages
- Jamaica has suffered high and sustained damages from natural disasters over the past several decades.
- Hydrometeorological events (floods, tropical storms, hurricanes etc.) have been the most prominent hazards.
- The number of storms passing by or directly affecting Jamaica in the 2000s was 22; this was the highest since 1940–1959.
- Hurricanes Ivan (2004) and Dean (2007) caused damages of US$580 million and US$329 million each (or 8 and 3 percent of GDP, respectively).
- Tropical storm Nicole (2010) caused damages of US$239 million (or 2 percent of GDP).
- For a one in 100 years type of event, the fiscal losses are expected to exceed US$ 1,729 million (roughly about 10 percent of GDP); there is a one percent probability in any year that losses will exceed US$1,729 million from such an event.

### Climate change risks to external sustainability and key sectors
- Tourism-related BOP inflows are equivalent to some 20 percent of GDP; tourism is highly sensitive to climate effects.
- Frequent, severe, and persistent natural disasters would likely:
  - sharply reduce tourist arrivals,
  - devalue the capital base of the tourism industry,
  - affect nature-based tourism assets,
  - disrupt inflows of foreign exchange,
  - trigger unplanned fiscal expenditures.
- Agriculture is exposed to higher temperatures, rising sea levels, and volatile precipitation patterns; impacts may reduce agricultural productivity and constrain availability and quality of food, energy, and water.
- In 2020, Jamaica contributed negligible amounts to total GHG emissions.
- In FY 2021/22, fuel commodity imports represented 11 percent of GDP and were twice the level of Jamaica’s goods exports.
- Over 85 percent of Jamaica’s electricity production is derived from fossil fuel mostly heavy fuel oil.
- Mass public transportation is underdeveloped, leading to high per capita petrol consumption compared to regional peers.
- The high fuel import bill and related inflationary pressures following the war in Ukraine highlight the need to transition to renewable energy.

### Climate change objectives, policy framework, and targets
- Vision 2030 Jamaica–National Development Plan defines long-term goals toward inclusive and sustainable growth across social, economic, and environmental dimensions.
- The Climate Change Policy Framework for Jamaica was promulgated in 2015 and updated in 2021 (the 2021 update has not yet been approved).
- Jamaica submitted its Intended Nationally Determined Contribution (NDC) in November 2016 and ratified the Paris Agreement in April 2017.
- The initial NDC was enshrined in the National Energy Policy (2009-2030). In 2019, the government adopted the Integrated Resource Plan (IRP) as a 20-year roadmap to transition to renewable energy.
- In June 2020, Jamaica submitted an updated and more ambitious NDC; in August 2021 Jamaica launched its NDC Implementation Plan.
- The updated NDC targets emissions reductions of between 25.4 percent and 28.5 percent (with external assistance) relative to business by 2030.
  - About 80 percent of the reductions are expected to come from the energy sector through large-scale renewables and improved energy efficiency.
  - The remainder will come from the land use change and forestry sector, including a ‘No Net Loss of Forestry’ commitment and tree planting.
- The government is developing its first National Adaptation Plan (NAP) and a National Disaster Risk Financing Policy.
- The GOJ plans to develop a long-term strategy for Low Carbon Emissions and Climate Resilient Development (LTS) to 2050.
- The updated NDC target (noted elsewhere) is 25-29 percent relative to a business-as-usual scenario by 2030 and commits to maintain at least 30 percent of the country land mass as forest.

### Climate Change Public Investment Management Assessment (C-PIMA) — framework and high-level findings
- The C-PIMA evaluates five key public investment institutions (C1–C5) from a climate change perspective, mapping to the existing PIMA framework; institution C5 (risk management) has no PIMA counterpart.
- Detailed questionnaire and methodology are in Annex 1 (in the source).

C1. Climate-aware planning (Institutional Strength: Medium; Reform Priority: Medium)
- Assessment dimensions: consistency of public investment strategies with climate objectives; spatial and urban planning/building code requirements addressing climate risks; existence of centralized guidance on climate-aware public investment planning.
- Findings:
  - National and some sectoral plans are consistent with climate adaptation and mitigation objectives, though Vision 2030 does not integrate climate adaptation and mitigation public investment projects.
  - The 2021-2024 Medium Term Socio-Economic Policy Framework (MTF) reflects updated 2020 NDC goals.
  - Sectoral plans such as the 2019 National Water Sector Policy and the 2017 National Forest Management and Conservation Plan are climate resilient.
  - The Ministry of Transport and Mining is revising policies to integrate climate adaptation principles.
  - The JA-NAP project (GCF-funded) is developing sector climate vulnerability assessments and sectoral adaptation plans for water, health, tourism, agriculture, coastal resources, and human settlement.
  - Major autonomous institutions and public companies conduct investment planning consistent with the NDC, MTF, and sectoral policies.
  - PIOJ is preparing the NAP with GCF approval; the NAP aims to build a national adaptation planning and implementation framework by 2025.
  - The GOJ will develop an LTS to integrate mitigation and adaptation to 2050.
- Building codes and spatial planning:
  - The National Building Code of Jamaica was adopted in 2018 and came into operation in January 2019; it comprises the International Building Code (IBC) and 11 documents describing standards of specification.
  - The IBC provides for construction practices that resist extreme weather and guidance for improving energy efficiency in public buildings.
  - Compliance at permitting and construction inspection stages needs improvement.
  - The 1966 Land Development Act and the 1958 Town and Country Planning Act do not include climate change provisions; an updated National Spatial Plan (NSP) is at draft stage.
  - NEPA reports the entire island is covered by at least one Provisional Development Order including zoning and hazard maps.
  - Some parishes have a Climate Risk Atlas of Coastal Hazards and Risk (e.g., Negril).
  - The GOJ developed the 2020 Beach Access and Management Policy and the 2017 Coastal Management and Beach Restoration guidelines.
- Centralized guidance and tools:
  - No centralized guidance exists, though initiatives include CCD training for the Climate Change Focal Point Network and the CC-Connect newsletter (December 2021 issue dedicated to COP 26).
  - PIOJ is developing the Jamaica Systematic Risk Assessment Tool (J-SRAT), a geospatial analysis platform (phase two implementation).
  - JSIF is developing a National Risk Information Platform (NRIP) under the DVRP (World Bank loan US $30 million) to centralize hazard, vulnerability, and loss data; ODPEM will manage the NRIP.
- Conclusion: climate goals are mainstreamed nationally and sectorally, but integration into land-use and spatial planning regulations and a centralized technical support function at PIOJ are recommended.

C2. Coordination between entities (Institutional Strength: Low; Reform Priority: Medium)
- Assessment dimensions: coordination of climate-related public investment across central government, general government (including sub-national), and the public sector (including public corporations).
- Findings:
  - Decision making on climate-related public investment is not coordinated across central government; responsibilities are diffuse and delinked from public investment processes.
  - Key institutions identified in the 2015 Climate Change Policy Framework (updated 2021 but not approved) include the 2013 CCD in MEGJC, the Climate Change Advisory Board (CCAB), and the Climate Change Focal Point Network.
  - CCD comprises 7 staff coordinating policy but has no responsibility for coordinating climate-related investments by other central government entities.
  - NEPA issues environmental permits for public sector investments, but permits do not account for climate change impacts.
  - PIOJ plays a strategic coordinating role and is compiling an inventory of climate change development projects with Canadian support.
  - JSIF manages the DVRP project; ODPEM focuses on risk prevention, emergency response, and rehabilitation.
  - The Development Bank of Jamaica and the Public Enterprises Division in MOFPS work to integrate climate change into PPP arrangements.
  - The Policy Expenditure Division in MOFPS, supported by IADB, is working on climate budget tagging; the Public Investment Appraisal Branch (PIAB) in MOFPS is mainstreaming climate into project appraisal.

*Source: 1jamea2023003 - 2. Jamaica’s high vulnerability to natural disasters poses substantial risk to the country’s*

### 16. The planning and implementation of the local government authorities’ (Municipal

### 16. The planning and implementation of the local government authorities’ (Municipal Corporations (MCs)) capital spending

### Coordination and institutional arrangements for climate-related public investment
- Finding: The planning and implementation of MCs’ capital spending is not coordinated with central government either in general or from a climate-change perspective.
- Initiative: Under the JA-NAP umbrella project, the Local Climate Adaptive Living Facility (LoCAL) program plans to:
  - increase awareness and capacities for climate change adaptation at the local level and the integration of climate change adaptation into local government plans and budgets; and
  - establish a performance-based climate resilience top-up financing mechanism.
- Finding: The regulatory and oversight framework for public corporations does not promote consistency between their climate-related investments and national climate policies.
  - The 2012 amended Public Bodies Management and Accountability Act does not indicate alignment of public bodies’ infrastructure with national climate goals.
  - Public bodies are explicitly covered in the NDC and are named as key contributors to NDC commitments 6 and 15 (Introduction of 136 low-carbon public transport buses and the Urban Transport Management System (UTMS)), 9 (Liquefied Natural Gas (LNG) in the Alpart Rafinery) and 12 and 16 (Reduced water distribution losses (Kingston) and National Appropriate Mitigation Action in water sector).
  - Climate considerations are prominent in certain public bodies’ strategic plans (example: Rural Water Supply Company Ltd).
- Recommendation: Streamline institutional set up for the climate change agenda; put in place a process to coordinate both mitigation and adaptation related investments.
  - PIOJ needs a broader role covering coordination of climate-related investments from other central government entities and should provide the missing technical guidance in collaboration with MOFPS and the CCD.
  - Revise the legal and supervisory framework governing public bodies to ensure alignment between climate change policies and public bodies’ capital investment.

### C3. Project appraisal and selection (Institutional Strength: Low; Reform Priority: High)
- Dimensions assessed:
  - whether appraisal of major infrastructure projects requires climate-related analysis by a standard methodology;
  - whether the PPP framework includes climate-related elements;
  - whether climate-related elements are included in criteria for selecting public investment projects.
- Findings on appraisal methodology:
  - The EIA regulations under the NRCA Act do not provide specific guidance on climate change analysis.
  - The 2014 Financial Administration and Audit Act (FAA) (Section 48J and new Fourth Schedule), its 2019 Financial Instructions and 2016 PIMS guidelines do not provide criteria for assessing climate impacts of/on investment projects.
  - PIAB in MOFPS developed a climate sensitive template for MDAs’ submission of project concept and proposal:
    - template requires screening for climate hazards using the Caribbean Climate Online Risk & Adaptation Tool (CCORAL) at a project concept stage;
    - projects prone to climate risks require a climate impact assessment at proposal stage;
    - no standard methodology to undertake such assessment is mandated.
  - Projects funded by development partners (CDB, IADB, WB) undergo climate vulnerability assessment at appraisal stage.
- Findings on PPP framework:
  - The PPP framework does not include explicit consideration of climate risks allocation between government and PPP partners, but substantial reform is underway.
  - In 2020 IADB published an assessment; based on it, DBJ in collaboration with the Public Enterprise Division of MOFPS is revising the PPP policy to include climate requirements from project identification to contract management.
  - Revisions include requiring PPP RFPs and contract management to improve allocation of contingencies associated with natural hazards between PPP partners.
  - GOJ will adopt an IADB tool to incorporate policy actions into PPP arrangements for climate sensitive PPPs; tool tested on two WB-sponsored projects (solid waste management project and potable water treatment plant for Kingston and Saint Andrew) with encouraging outcomes.
- Findings on project selection:
  - No explicit climate-related criteria are applied to selection of investment projects.
  - No commonly agreed and standardized methodology for selection and inclusion of climate related budget-funded capital projects in the PSIP.
  - 2016 PIMS assigns PIAB responsibility for developing and maintaining transparent ranking of appraised feasible projects; responsibility recently assigned to PIOJ which is working on adopting a set of selection criteria and related weights that might potentially include climate-related criteria.
- Recommendation:
  - Adopt a standard methodology for climate-related analysis at appraisal stage following CCORAL pre-appraisal adoption.
  - Define project prioritization criteria and methodology integrating climate-related criteria.
  - Plan training on the new project appraisal and selection framework.

### C4. Budgeting and portfolio management (Institutional Strength: Low; Reform Priority: Medium)
- Purpose: assess management of government’s portfolio of climate-related public investment projects from budgeting to management of completed projects.
- Dimensions: (i) presentation of planned climate-related projects in budget documents; (ii) ex-post reviews considering climate outcomes; (iii) asset management policies addressing climate-related risks.
- Findings on budget identification:
  - Climate-related public investment spending is not identified in the budget.
  - IADB providing technical assistance for adoption of climate budget tagging.
  - Proposal: tag climate mitigation and adaptation expenditures using functional classification, adding a second level (sub function) to ‘Environmental protection’ with three categories: mixed, mitigation and adaptation; proposed classification aligns with COFOG.
  - MOFPS developed a 4-year implementation road map for climate budget tagging reform.
  - Current tracking: budget program ‘Disaster Management’ (Program 005; reclassified Program 015 in FY20/21) tracks natural disaster-related expenditures.
    - Allocations: US$10.2 million in FY2019/20 and US$50.4 million in FY2020/21.
- Findings on ex-post reviews and audits:
  - No legal requirement or specific methodologies to undertake ex-post reviews or external audits of capital projects’ impact on climate adaptation or mitigation outcomes.
  - FAA (new Fourth Schedule (I (b)) and 2016 PIMS guidelines regulating ex-post assessment do not refer to climate change reviews.
  - Auditor general undertakes performance and financial audits of capital projects but legislation regulating external audit does not refer to climate change audits.
- Findings on asset management:
  - No policies for estimating standard or climate risks related maintenance of assets.
  - Comprehensive assessment management policy approved in 2020; previously only cars and furniture were subject to assets' management regulations.
  - PXPC Division within MOFPS is identifying public assets and setting up a centralized comprehensive public asset inventory in compliance with 2020 asset management policy.
  - Identified assets should include geo-referenced information of attributes and exposure to risks (exact location, construction type, number of stories) to inform maintenance and reconstruction prioritization and to build an exposure database integrated with hazard and vulnerability models to establish a fiscal disaster risk profile (Institution C5).
  - Ministry of National Security purchased a public asset management information system to be adopted and rolled out by PXPC Division.
- Recommendation:
  - Proceed with climate budget tagging and introduce climate-related risks into asset management policy and practices.
  - Use geo-referenced asset inventory to adjust maintenance planning and funding to reduce long-term maintenance costs and increase asset life.

### C5. Risk management (Institutional Strength: Medium; Reform Priority: High)
- Purpose: assess how government identifies and manages fiscal risks associated with public investment impacted by climate change and natural disasters.
- Dimensions: (i) publication of national disaster risk management strategy incorporating exposure of public infrastructure to climate-related disasters; (ii) existence of financing mechanisms to meet costs of climate-related damages; (iii) conduct of fiscal risk analysis that considers climate-related risks to public infrastructure assets.
- Findings on strategy and institutional framework:
  - Jamaica does not have a national disaster risk management strategy that analyzes key climate risks to public infrastructure assets, but existing disaster plans and acts address these risks.
  - 1997 National Disaster Plan defines disaster preparedness, operations and training and government entities’ disaster responsibilities.
  - 2015 DRM Act provides overarching institutional and legal framework for disaster risk management and financing (repealed 1993 Act).
  - Vision 2030 National Development Plan Output 14 analyzes impact of extreme weather events, link between disaster risk and climate change, and lists priority DRM activities; provisions further developed in MTFs.
  - ODPEM developed a Comprehensive Disaster Management program (CDM) covering preparedness/response, recovery/rehabilitation, and mitigation phases.
- Findings on financing instruments for disasters:
  - Jamaica has a range of financing instruments: budget instruments, disaster risk insurance, parametric insurance, contingent line of credit from IFIs.
  - Contingencies Fund:
    - Established under the Constitution and Section 13 of the FAA for unforeseen expenditure including disasters.
    - Aggregate ceiling raised from J$100 million (US$652 thousand) to J$10 billion in 2019 (US$ 65.12 million).
    - Two-stage capitalization totalling J$4.6 billion (US$30 million).
  - National Disaster Fund (NDF):
    - Established under Part IX of the DRM Act for mitigation, prevention, preparedness, response, recovery, and financial assistance to households.
    - Currently capitalized at US$2.2 million and receiving annual injection of around J$500 million (US$3.2 million).
    - Authorities considering shifting NDF focus to local events and dedicating it to preventive use.
  - CCRIF-SPC:
    - Member of regional catastrophe insurance platform offering quick-disbursing parameter-based insurance.
    - Annual CCRIF insurance premia around US$16mn/year, mostly financed through development partners with GOJ contributing a small but over time increasing share.
    - In 2021, insured hazards were earthquakes, tropical cyclones and floods, with coverage up to US$248.7million.
  - CAT bond:
    - Jamaica sponsored a catastrophe bond placed in July 2021, securing US$185 million from capital markets.
  - Rapid credit facilities:
    - Liquidity needs met through IFIs in the past, including IADB (US$285 million remain available) and IMF’s Rapid Financing Instrument disbursed in 2020 in response to COVID.
  - Insurance coverage for public companies limited; key obstacle is lack of public infrastructure asset inventory and valuation.
  - GOJ considering establishing a National Disaster Reserve Fund (NDRF) for catastrophic national level events to be defined in the FAA in relation to impact as a percentage of GDP.
  - MOFPS finalizing the National Disaster Risk Financing Policy to adopt a comprehensive financing approach including use of an expanded set of insurance instruments.
- Findings on fiscal disclosure and quantification:
  - Disaster risks related to public infrastructure assets are not compiled and published in fiscal policy documents.
  - Annual average fiscal cost of natural disasters in Jamaica for 2010–2017 was about 0.84 percent of GDP or around J$16 billion (US$121 million).
  - Fiscal policy papers and fiscal risk statements identify natural disaster risks but do not quantify them and other climate-related and transition risks.

*Source: 1jamea2023003 - 16. The planning and implementation of the local government authorities’ (Municipal Corporations (MCs)) capital spending*

### 33. Integrating resilience building in the macroeconomic and fiscal planning is a high

### 33. Integrating resilience building in the macroeconomic and fiscal planning is a high priority

### Main findings and priorities
- Integrating climate-related risks into macroeconomic and fiscal planning is identified as a high priority for Jamaica.
- Jamaica would benefit from developing a framework and methodologies for incorporating climate-related risks to public infrastructure assets into fiscal risk analysis.
- A robust assessment of explicit and implicit contingent climate-related liabilities would help determine which insurance coverage instruments are most suitable for Jamaica, including selection of the most effective National Disaster Risk Financing Policy ex-ante financing mechanisms.
- Reform Priority: High for Legal framework and Staff Capacity; Reform Priority: Medium for Information Systems.

### Legal and regulatory framework (Reform Priority: High)
- Jamaica has developed a comprehensive climate change policy framework that has not yet been fully translated into an updated legal and regulatory framework.
- Key policy milestones and instruments:
  - Vision 2030 National Development Plan (provides analysis of impact of extreme weather events and lists priority mitigation and adaptation actions).
  - Climate Change Policy Framework for Jamaica promulgated in 2015 and updated in 2021 (defines institutional framework and processes for integrating climate change into governance systems). The update in 2021 was not yet approved.
  - First NDC submitted in November 2016; Paris Agreement ratified in April 2017.
  - Initial NDC enshrined in the National Energy Policy (2009–2030) highlighted national adaptation planning.
  - 2019 Integrated Resource Plan (IRP) adopted as a 20-year roadmap for transitioning to renewable energy.
  - Updated NDC submitted in June 2020 (more ambitious on emission reductions and reflecting adaptation co-benefits).
  - NDC Implementation Plan launched in October 2021.
  - Government of Jamaica (GOJ) is developing the NAP.
  - Building Code establishes guidelines for hurricane-resistant construction (including hurricane straps and water tanks) and building standards for coastal zone construction, including coastal setbacks.
- Recommendation: Enact an overarching Climate Change Law that defines clear roles and responsibilities for implementation of Jamaica’s climate policy and climate-related public investment to operationalize the NDC and the developing NAP.
- The PIM FAA sections should mainstream climate considerations throughout the project cycle across all government entities and levels.

### Public Investment Management (PIM) staff capacity (Reform Priority: High)
- Capacities in PIM and climate-sensitive PIM need strengthening to allow institutions to fulfill their roles.
- Specific capacity needs:
  - Strengthen PIOJ capacity to provide guidance on climate-aware planning and preparation of public investment plans and projects from a climate change perspective.
  - Enhance capacities of the PIAB in the MOFPS to support MDAs in project appraisal including climate-analysis as part of feasibility studies.
  - Most MDAs and public bodies currently rely on external expertise to develop project feasibility studies.
  - Continue support to the Public Expenditure Division of MOFPS to assure implementation of climate budget tagging and its integration with the Financial Management Information System (FMIS).
  - Economic Management Division staff, particularly the Fiscal Policy Management Unit, require targeted capacity development and peer-to-peer training to strengthen integration of climate risks in fiscal risk analysis.

### Information systems and climate budget tagging (Reform Priority: Medium)
- Development of a climate change budget tagging system is ongoing and should be supported by MOFPS applications.
  - Climate budget tagging enables identification, measurement, and monitoring of climate-relevant public investment expenditures and supports monitoring implementation of the NDC and the developing NAP.
  - Several countries have included climate tags in the coding structure of their FMIS. Examples cited: Bangladesh, Ecuador, Ghana, Honduras, Indonesia, Kenya, Nicaragua, Pakistan, Philippines and Uganda.
- PIMIS development (with World Bank support) should advance in tandem with information systems development:
  - PIMIS comprises three modules:
    - (i) Government's Public Sector Investment Program (PSIP) collating electronic submission of project concept and project proposals for final selection and submission to the Cabinet;
    - (ii) information collection and generation of the relevant reports;
    - (iii) capital investments portfolio analysis.
  - The PSIP module is almost completed and includes the CCORAL tool.
  - The system will be accessible to all MDAs and is to interface with the FMIS and the Jamaica InvestmentMap (a geo-referenced system showing responsible agency, cost and status of implementation of projects).

### Fiscal risk management and ex-ante financing
- The fiscal risk statement is an annex to the Fiscal Policy Paper.
- Key gaps and recommendations:
  - Advance development of methods to incorporate climate-related risks to public infrastructure assets in fiscal risk analysis, including quantitative assessments where feasible.
  - Assess explicit and implicit contingent climate-related liabilities to inform selection of insurance and ex-ante financing instruments.
  - Establish or strengthen ex-ante financing mechanisms (for example, contingency appropriations and other financing mechanisms) to manage the exposure of the stock of public infrastructure to climate-related risks.

### Table 3: Key policies, laws, and regulations (as listed)
- 2021-2024 Medium Term Socio-Economic Policy Framework (MTF).
- 2021 updated NDC.
- 2019 Integrated Resource Plan (IRP).
- 2019 National Water Sector Policy.
- 2017 National Forest Management and Conservation Plan.
- 2016 First NDC.
- 2015 Disaster Risk Management (DRM) Act.
- 2015 Climate Change Policy Framework.
- 2009 Vision 2030 National Development Plan.
- 1997 National Disaster Plan.
- 1991 Natural Resources Conservation Authority (NRCA) Act.
- 1966 Land Development and Utilization Act.
- 1958 Town and Country Planning Act.
- 1956 Beach Control Act.

### C-PIMA scoring framework highlights (Annex 1)
- The C-PIMA Questionnaire scoring rubric ranges: 1 = To no or a lesser extent (NOT MET); 2 = To some extent (PARTIALLY MET); 3 = To a greater extent (FULLY MET).
- Key assessment dimensions:
  - C1. Climate-aware planning: consistency of national and sectoral public investment strategies with NDC; land use and building regulations addressing climate risks; centralized guidance for preparation and costing of climate-aware public investment strategies.
  - C2. Coordination between entities: coordination across central government; coordination with subnational governments; oversight framework for public corporations to ensure consistency with national climate policies.
  - C3. Project appraisal and selection: requirement for climate-related analysis in appraisals; PPP contract frameworks addressing climate risks; inclusion of climate elements in project selection criteria.
  - C4. Budgeting and portfolio management: identification, monitoring, and reporting of planned climate-related expenditures; ex-post reviews/audits of climate mitigation and adaptation outcomes; asset management policies addressing climate risks.
  - C5. Risk management: publication of national disaster risk management strategy that incorporates climate impacts on infrastructure; existence of ex-ante financing mechanisms; fiscal risk analysis incorporating climate-related risks.

- The questionnaire provides explicit benchmarks for progressing from qualitative to quantitative fiscal risk assessment and for broadening coverage across externally financed projects, extra-budgetary entities, and PPPs.

*Source: IMF.*

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_Source: https://www.imf.org/-/media/files/publications/cr/2023/english/1jamea2023003.pdf_