UK (Commonwealth Union)_ The Commonwealth Secretariat, in collaboration with the University of Cambridge’s Centre for Resilience and Sustainable Development (CRSD), convened the Cambridge Policy Simulation Lab (CPSL) to put the Common Pool Asset Structuring System (COMPASS) to the test. Developed under the ‘Their Future, Our Action’ initiative, COMPASS aims to revolutionize financial mechanisms tailored for Small Island Developing States (SIDS), particularly in the face of escalating environmental and economic challenges driven by climate change.
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COMPASS, a product of the collaborative initiatives between the Commonwealth and CRSD over a two-year period, emerged as a revolutionary tool designed to streamline sustainable finance provisions for vulnerable SIDS. Embracing a unified and cross-jurisdictional approach, COMPASS seeks to simplify complex financial landscapes and facilitate enhanced access to sustainable finance for nations grappling with multifaceted challenges.
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In her remarks at the workshop’s outset, Commonwealth Secretary-General, the Rt Hon Patricia Scotland, emphasized the potential of COMPASS to expedite SIDS’ access to finance by addressing issues of scale, risk, and complexity. By fostering collaboration among member states, pooling resources, and streamlining decision-making processes, COMPASS aims to create a conducive environment for developing a robust pipeline of funding applications and investable projects tailored to the unique needs of SIDS. She stated, “COMPASS can accelerate SIDS’ access to finance by overcoming challenges of scale, risk, and complexity by helping our members work together: pooling resources, expertise and decision-making processes; developing a common language to describe the challenges they share and developing a robust pipeline of funding applications and investable projects”.
Additionally, Scotland underscored the Commonwealth’s unwavering commitment to supporting SIDS through a comprehensive and collaborative approach, aligning with the organization’s ethos of collective action and shared responsibility. She added, “This initiative reflects the Commonwealth’s commitment to addressing the unique needs of SIDS through a comprehensive and collaborative approach.”
The CPSL marks the culmination of the Their Future, Our Action initiative, which engages over 500 experts, 200 national policymakers, and 5000 citizens across the Commonwealth. Participants, including High Commissions for Commonwealth SIDS, were presented with various pathways for securing funding tailored to the specific challenges faced by SIDS. The CRSD will consolidate insights gleaned from collaborative action-research into a comprehensive report, integrating key outputs such as the development of COMPASS, the Political Economic Resilience Index (PERI), and the legal validation of a holistic approach for identifying investable opportunities to attract blended finance.
This report will offer practical recommendations for SIDS to effectively utilize COMPASS and PERI, contributing to the advancement of sustainable solutions tailored to their unique contexts. By leveraging existing multilateral and bilateral partnerships and engaging with the impact investment community, the Commonwealth Secretariat and CRSD partnership remain steadfast in their commitment to bolstering the global financial resilience system for SIDS. The outcomes of the CPSL offer a range of viable avenues for securing funding tailored to the needs of SIDS, setting the stage for meaningful discussions at the upcoming Commonwealth Heads of Government Meeting (CHOGM) in October in Samoa, the first CHOGM to be hosted in a Small Island Developing State.
