This adaptation option applies the “polluter pays” principle by directing fines collected from environmental violations such as illegal dumping, wastewater discharge, or air pollution toward climate adaptation and ecosystem restoration projects. Instead of these funds going into general revenue, they are earmarked for activities like coastal protection, coral reef restoration, or improved drainage systems. This approach can create an additional financing stream for adaptation while discouraging harmful practices. 

Feasibility & Local Applicability

In Curaçao, Aruba, and St. Martin, environmental laws already allow for penalties on polluters, but these fines typically go into general government accounts. Updating legislation to earmark these funds for adaptation would be a practical step. For example, fines from wastewater violations could finance reef protection, while penalties on industrial emissions—such as those from Curaçao’s oil refinery—could support flood management or renewable energy projects. Strict monitoring and transparency is required for this mechanism to work.  

Co-benefits 

This measure not only generates dedicated funding for adaptation but also acts as a deterrent against pollution, improving water quality and protecting marine ecosystems. Cleaner environments enhance tourism and fisheries, which are vital for island economies. Over time, this approach can strengthen public trust in environmental governance and encourage businesses to adopt greener practices. 

Equity & Vulnerability Considerations 

Care must be taken to avoid disproportionate impacts on small businesses or low-income households. Transparent rules on how fines are calculated and how funds are allocated are essential. 

Costs 

Low - Medium | Administrative costs for implementing this measure are relatively low compared to other financing options, as it builds on existing enforcement systems. However, initial investments may be needed for legal reforms, monitoring, and reporting mechanisms. The revenue potential depends on enforcement capacity and compliance levels; while fines alone cannot cover all adaptation needs, they provide a valuable supplementary source of funding.