Opening Remarks for the Side-Event “Financing development in a
climate challenged world: Debt Sustainability Support Service”

Side-Event at the Fourth International Conference on Financing for Development

Excellencies, Distinguished Delegates
I have the honour to present these opening remarks on behalf of the Chair
of the Alliance of Small Island States (AOSIS).

As mentioned by others before me, Small Island Developing States stand
at the frontlines of multiple cascading crises: climate, economic,
environmental, and debt. Despite our negligible contributions to global
emissions, SIDS are forced to shoulder the compounded burden of
climate-induced disasters, economic shocks, and mounting debt that
threaten our development aspirations.

Our economies are small and heavily reliant on external markets and
increasingly exposed to global volatility. Time and again, we are forced to
borrow in the aftermath of crises we did not create, driving us deeper into
unsustainable debt. This cycle cannot continue.

That is why AOSIS strongly advocated for a strong call on the
operationalization of the SIDS Debt Sustainability Service (DSSS) in the
Compromiso de Sevilla. It is a direct response to the challenges we face.

The DSSS is a concrete and innovative mechanism tailored to the realities
of SIDS because it is built by SIDS, for SIDS. It would provide predictable,
scaled, and responsive support for debt sustainability, with an emphasis on
building resilience and preserving fiscal space for sustainable development.

Importantly, the DSSS must be rooted in principles of equity, climate justice,
and the recognition that SIDS need dedicated solutions beyond traditional
frameworks. The existing global debt architecture has not served us well. It
is fragmented, slow to respond, and fundamentally misaligned with the risk
profiles and development trajectories of our small vulnerable economies.

As we turn to its full operationalization, AOSIS urges the international
community to act with ambition and partnership to make the DSSS a reality.
Our vision is clear.

First, the DSSS must be embedded as a central pillar of the suite of
solutions available to SIDS across the international financial architecture
and within international financial institutions as a key stakeholder in tackling
the interconnected challenges of climate, debt and sustainable
development.

Second, the DSSS will be accessible and adaptable, reaching every small
island developing state offering tailored support that fit their specific needs,
regardless of income level.

Third, operationalization will hinge on a robust coalition of partners, from
the multilateral development banks to legal experts to the private sector.
Their contributions to the components of the DSSS will strengthen its
innovation, expertise and capacity to deliver.

Lastly, we will need a core cohort of political, institutional and financial
champions to advocate for and drive implementation of the DSSS across
the regions.

Excellencies, Distinguished Delegates,

We call on all partners to treat the operationalization of the DSSS as a
priority outcome of Sevilla. Let us turn this call into action. Let us move
from principles to practice.
The Antigua and Barbuda Agenda for SIDS laid the foundation. The
Compromiso de Sevilla is the next step.

Let us now build upon it with urgency, resolve, and solidarity.
Thank you.