Two University of the West Indies (UWI) academics are warning that as T&T officially enters the 2026 rainy season, businesses across the country are once again being reminded of a growing economic reality that climate disruption is no longer an occasional inconvenience rather it is becoming a permanent business risk.
Dr Priscilla Bahaw who is a lecturer in entrepreneurship, Faculty of Food and Agriculture, UWI and professor Preeya Mohan who is an environment and development economist at UWI shared some of the latest developments in this area with the Sunday Business Guardian.
They recently gave insights at the inaugural International Conference on Food and Nutrition Security and Sustainable Tourism hosted by the Faculty of Food and Agriculture (FFA), UWI, St Augustine Campus, from March 31 to April 1, 2026, where policymakers, entrepreneurs, tourism stakeholders, researchers and development agencies gathered to discuss resilience, sustainability and the future of Caribbean economies.
Bahaw said from recurring floods and supply chain disruptions to rising operational costs, water stress, and growing uncertainty across tourism, food systems, transportation, retail and agriculture, climate-related pressures are steadily reshaping how Caribbean businesses operate.
She added that beyond flooding and drought conditions, businesses across the Caribbean also face disruptions linked to landslides, damaged road networks and temporary isolation from critical amenities and services following extreme weather events. In some communities, climate-related disruptions can interrupt transportation routes, delay deliveries, affect employee mobility and temporarily disconnect businesses from customers, utilities and supply chains.
She referred to recent data which indicates that these events act as a “stress multiplier,” intensifying existing pressures in the Caribbean such as high utility costs and increased insurance premiums for properties in high-risk flood zones. These realities further highlight the growing importance of resilience planning within Caribbean business operations.
Both academics said many firms and businesses across the region are still underestimating how rapidly the business environment is changing.
Drawing on their combined expertise in climate resilience, development economics, entrepreneurship and sustainable business systems, Mohan and Bahaw have strategically joined forces to examine one of the region’s most pressing concerns: how Caribbean businesses can successfully transition and remain competitive within increasingly climate-vulnerable economies.
Their argument is clear: the region’s business challenges can no longer be understood through a single lens.
“Climate adaptation is not just an environmental issue. It is now a business continuity issue, a competitiveness issue and an economic development issue,” Mohan explained during discussions surrounding the conference.
She said recent regional estimates continue to show that climate-related disasters cost Caribbean economies billions annually through infrastructure damage, productivity losses and business interruption. While neighbouring islands often face the devastating effects of hurricanes, countries like T&T are not insulated from climate vulnerability.
Flooding events, drought conditions, coastal pressures and rising heat exposure continue to affect businesses locally, particularly SMEs that often have limited financial buffers to absorb disruptions.
Bahaw noted that businesses are increasingly being forced into transition whether they are fully prepared or not.
“What we are witnessing is a shift in how entrepreneurs think about survival and long-term growth. Businesses are recognising that sustainability, resilience and profitability are becoming deeply interconnected. The traditional way of operating is no longer enough in many cases.”
The researchers stressed that one of the Caribbean’s greatest vulnerabilities lies not only in exposure to climate events, but also in the structure of many regional economies themselves.
They said Small Island Developing States (SIDS) often face a difficult combination of high import dependence, narrow economic diversification, limited land availability, infrastructure vulnerabilities and relatively small domestic markets. These realities can make businesses particularly sensitive to external shocks, whether from climate events, global supply chain disruptions or fluctuations in international commodity prices.
According to Professor Mohan, climate pressures are amplifying these existing economic vulnerabilities.
“In many ways, climate change acts as a stress multiplier. It intensifies existing economic pressures that businesses already face, including operational uncertainty, rising costs and supply chain fragility.”
This has become increasingly visible across sectors.
Mohan said tourism operators continue to face growing pressure to integrate sustainability into visitor experiences as global travellers become more environmentally conscious. Businesses dependent on imported goods are encountering ongoing supply chain volatility and higher transportation costs. Agricultural producers continue to battle changing rainfall patterns, droughts and flooding conditions that threaten productivity and food security.
At the same time, insurance costs and infrastructure risks are becoming growing concerns for businesses across the region.
Yet amid these challenges, the researchers say there are also important signs of progress.
A major hurdle for the region’s SMEs remains the “adaptation gap” characterised by a critical lack of capital to fund long-term resilience.
However, Mohan said new financial lifelines are beginning to bridge this divide through targetted regional credit lines specifically earmarked for small business sustainability. This capital injection is being complemented by technical assistance grants designed to help firms implement formal environmental and social management frameworks. Furthermore, evolving fiscal policies are introducing green tax incentives that reward businesses for proactively investing in renewable infrastructure and resource-efficiency technologies.
On a positive note, they remain optimistic as across the Caribbean, businesses are already beginning to adapt in innovative ways.
They both explained that some firms are incorporating solar-powered systems and other energy-efficient operational practices to reduce electricity costs while improving business continuity during climate-related disruptions such as power outages. Others are strengthening local sourcing networks, digitising operations, implementing leaner business systems or incorporating sustainability into branding and customer engagement strategies.
Many SMEs are also beginning to view sustainability less as a public relations exercise and more as a long-term business strategy.
“What is encouraging is that many entrepreneurs are not waiting passively for solutions. Across the region, businesses are already experimenting, innovating and adapting within difficult operating environments,” Bahaw said.
She explained that entrepreneurs are increasingly recognising that resilience can create competitive advantages.
“Businesses that become more adaptable, resource-efficient and sustainability-focused may ultimately become more competitive in regional and international markets,” Bahaw noted.
She said this changing mindset formed an important part of the researchers’ broader discussions at the conference.
While much of the global climate conversation often focuses on governments and international agreements, both researchers argued that the private sector, particularly SMEs, will play a defining role in shaping the Caribbean’s future resilience.
Both gave the view that SMEs account for the overwhelming majority of businesses across the region and remain central to employment generation, innovation and economic activity. However, many continue to operate with limited access to financing, sustainable technologies, digital infrastructure and resilience-focused business support systems.
This creates a major policy challenge for Caribbean economies seeking to strengthen long-term competitiveness.
According to Mohan and Bahaw, climate adaptation cannot be approached through fragmented or isolated policy responses. Instead, the region requires coordinated strategies that integrate business development, sustainability, innovation, tourism, food systems and economic planning.
“Our realities are unique. Solutions that work for larger developed economies are not always directly transferable to small island states. Caribbean economies require context-specific adaptation strategies grounded in our regional realities,” Mohan.
This multidisciplinary perspective was one of the reasons behind the collaboration between the two academics.
While Mohan’s work focuses heavily on climate resilience, vulnerability and development economics within SIDS, Bahaw’s research examines entrepreneurship, SMEs and sustainable business development within resource-constrained environments.
Together, they argue that understanding Caribbean business transition requires more than a single disciplinary perspective.
“The region’s challenges are interconnected. Climate adaptation, entrepreneurship, sustainability, economic resilience and innovation are increasingly influencing each other. Addressing these problems requires collaboration across expertise areas,” Bahaw concluded.
