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Small islands developing States (SIDS) are characterized by small-sized economy with weak economic fundamentals and heavy reliance on a few industries or sectors for growth including agriculture, fisheries and tourism which make them most vulnerable to external economic shocks. They are most affected by the climate change and its related disasters such as cyclones, flooding, droughts, causing profound human and economic losses. With their unique geographical and resource challenges, SIDS lagged behind other groups of countries in achieving the Sustainable Development Goals. They actually regressed in several Goals, including in Goal 13 on climate change which has registered the most regression. With the current pace of development progress, SIDS will not be able to attain any Goals by 2030. Accelerating climate actions will not only reverse the impact of climate change that SIDS have been experiencing, but will also contribute to supporting livelihoods and a sustainable recovery for SIDS. It will thereby contribute to the achievement of other Goals. However, doing so will require extraordinary increases in investment and financing resources as well as strong financing capacities, all of which is increasingly constrained for SIDS, especially in the light of COVID-19 pandemic. To bridge the huge financing gaps for SIDS, there is a need for greater efforts to improve existing sources of finance and at the same time, to explore new sources. The following section will review challenges and opportunities for mobilizing traditional and innovative sources of finance for SIDS to support their climate actions.