Pacific Islands Forum Secretary General Baron Waqa has made a fervent appeal for increased private financing to support Small Island Developing States (SIDS) amidst mounting climate and economic pressures. During his address at the 2025 OECD Conference on Private Finance for Sustainable Development (CoP-PF4SD), he pointed out the disturbing reality that while global capital availability is high, only a measly portion is benefiting the most vulnerable economies, particularly those in the Pacific region.
Waqa stated, “Capital flows have reached unprecedented levels, yet far too little is reaching SIDS,” highlighting the dire situation where nations, vulnerable to climate crises and economic instability, are not receiving the necessary financial support. He underscored the pressing need for decisive action rather than further discussion, proposing that the comprehensive 2050 Strategy for the Blue Pacific Continent can guide climate-conscious investments away from traditional metrics.
Citing inadequate responses from global conferences such as COP29, Waqa emphasized that Pacific nations cannot solely depend on external commitments. He suggested that a transformative financial architecture is crucial for delivering tangible outcomes.
To bridge the existing financing gap, Waqa identified three pivotal strategies:
1. **Evolving the Role of Development Finance:** He urged Development Finance Institutions (DFIs) to transition from mere funders to active collaborators that facilitate collective access to blended finance for Pacific SIDS.
2. **Rethinking Risk and Return:** Waqa encouraged investors to revise how they assess success in climate financing, suggesting that returns need to encompass not only financial profits but also social and environmental contributions, particularly those benefiting SIDS.
3. **Strengthening Capacity Building:** He emphasized the importance of resilient infrastructure and institutions, recommending investment that fosters lasting changes and enhances cross-border digital economies.
Furthermore, Waqa introduced the Pacific Resilience Facility (PRF), a new regional financial institution aimed at funding climate adaptation and disaster preparedness. With a goal to raise an initial $500 million by 2026, the PRF is designed to be a sustainable solution and will be collectively owned by Pacific Islands Forum governments.
He urged global investors to consider supporting the PRF, asserting that the Pacific is not seeking charity but rather meaningful investment partnerships that will contribute positively to both local and global futures.
The need for innovative funding strategies, such as the PRF’s Contingency Sub-Fund, was also mentioned, as a mechanism to ensure preparedness for future crises. Waqa’s passionate call to action implores the global community to recognize the immense potential in investing in the PRF to uplift communities and spearhead sustainable development.
In conclusion, Waqa’s remarks resonate with urgency and offer a hopeful perspective for the Pacific Islands, as the region is ready with validated governance structures and a clear action plan for resilience against climate change.
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