The Reserve Bank of Fiji has introduced the country’s inaugural green finance taxonomy, marking a significant step towards fulfilling the climate finance commitments established during COP30 in Belém, Brazil. Finance Minister Esrom Immanuel highlighted that this framework aims to turn global climate pledges into concrete actions on a national scale. A key objective is to mobilize an impressive US$1.3 trillion annually by 2035, while also tripling adaptation finance and implementing the loss and damage fund.
The initial version of the taxonomy focuses on climate change mitigation, particularly in the energy and transport sectors, which are major sources of greenhouse gas emissions in Fiji. This taxonomy ensures that eligible activities not only contribute meaningfully to climate objectives but also do not cause significant harm to other environmental concerns.
Minister Immanuel emphasized the taxonomy’s alignment with the COP30 focus on adaptation and resilience, incorporating a comprehensive set of 59 global indicators across essential sectors such as water, infrastructure, and energy. He noted that green bonds are poised to play a vital role in addressing the US$6 trillion climate finance gap, thereby facilitating access to concessional funding for Pacific Island nations that face increasing threats from climate change.
Fiji has been grappling with some of the highest climate-related losses globally, with average annual damages from cyclones estimated at five percent of its GDP. The catastrophic impact of Cyclone Winston in 2016 serves as a stark reminder of the region’s vulnerability to climatic events, underscoring the urgent need for effective financial solutions to support resilience and adaptation efforts.
This new initiative not only exemplifies Fiji’s commitment to tackling climate change but also positions the nation as a proactive player in the global effort towards sustainable development.
Leave a comment