Government of the Republic of Fiji
Government of the Republic of Fiji
09/23/2024 | Press release | Distributed by Public on 09/23/2024 01:31
HE PRESIDENT RT. WILIAME KATONIVERE'S STATEMENT AT THE EXCHANGE OF VIEWS ON INTERNATIONAL CLIMATE...
Excellencies, Ladies and Gentlemen, Friends.
I thank Chancelor Scholz and Prime Minister Mataáfa for the invitation to join them for this important discussion.
Keeping alive the goal of limiting global warming to 1.5 °C is the ultimate goal for SIDS. It requires our collective commitment and most importantly - Action!
Climate Finance is often framed as a technical issue, but at its core, it is a question of justice.
For SIDS, accessing climate finance remains one of the most pressing challenges, which is clear in the Antigua and Barbuda Action for SIDS.
AOSIS approach on climate actions is clear and is a priority, and I acknowledge Samoa as Chair of AOSIS for all its efforts.
We are on the frontline of multiple world crises - including climate change and debt.
Responding to disasters is more expensive for SIDS. Debt is more expensive to service. Infrastructure is more expensive. Overseas Development Assistance (ODA) from partner countries doesn't stretch as far.
The current international financial architecture is inadequate to meet the needs of vulnerable countries.
IMF has estimated that Pacific Island Countries each need between 6.5% and 9% of GDP per year in financing on average for adaptation infrastructure, which equates to almost US $1 billion per year.
We do not have the fiscal space or resources to fund our own climate priorities, even if we wanted to.
The international community failed to implement their 2009 pledge to provide US$100 billion per year to address climate change impacts in the developing world.
The New Collective Quantified Goal (NCQG), will be adopted at COP29 in Baku, Azerbaijan later this year replacing the $100 billion goal.
Much higher amounts of provided finance must come as grants and highly concessional loans, to reflect the needs of developing countries without driving them deeper into debt.
Fiji acknowledge Germany's climate finance support, through bilateral and multilateral climate funds. ie. Green Climate Fund (GCF), Adaptation Fund (AF) Global Environment Facility (GEF), GIZ and so on.
In particular, this year has been a momentous year for Fiji and Germany as we strengthen further our cooperation with the opening of the Federal Republic of German Mission in Suva. Thank you Chancellor Scholz for that.
Excellencies, the major asks from Fiji which mirrors most SIDS include:
Funders need "to facilitate faster and easier access to climate finance in such a manner that the climate change priorities of Pacific communities, rather than the priorities and policies of the donors, are driving the regional portfolio of climate change projects.
Strong and meaningful commitment to increase in grant allocation;
Increase in concessional loan financing - which is characterized by lower interest rates and longer grace periods and repayment terms;
Traditional measures of development insufficiently capture vulnerabilities. The Multidimensional Vulnerability Index (MVI) (adopted by the General Assembly in July), is a vital tool to help SIDS gain access to the concessional financing needed to survive the climate catastrophe. Mainstreaming the MVI across climate financing requirements is critical.
Fiji Climate Financing Initiatives
Fiji's National Climate Finance Strategy zooms into the key investment priorities for both mitigation and adaptation across 12 sectors in the economy over the short (2022-2026) and medium term (2026-2029).
The strategy is an innovative and ambitious summary of climate related priorities that if fully funded, will ensure the Fijian economy is climate resilient.
The strategy comes ready with a list of project ideas that have the potential to be developed further into bankable proposals that can be submitted to Fiji's development partners (especially the multilateral climate funds such as the Adaptation Fund and the Green Climate Fund) for financing.
Accreditation of the Ministry of Finance to the Green Climate Fund and the Adaptation Fund. This would be an important opportunity for Fiji to access greater climate financing to implement large scale projects that will contribute to climate action in the nation.
Currently, the Fiji Development Bank as Fiji's only Direct Access Entity to the Fund has a limitation of USD 10 million per project and the Bank is accredited for loans only.
Fiji's Climate Relocation of Communities Trust Fund (CROC) for the planned relocation of communities in Fiji that are adversely affected by climate change. The Trust Fund is a dedicated source of financing for addressing the complex operations involved with the planned relocation of at-risk communities.
Work is in progress on Fiji's Disaster Risk Financing (DRF) Strategy that presents a comprehensive framework aimed at reducing the economic and fiscal impact of disasters by strategically combining various financial instruments.
I thank Chancelor Scholz and Prime Minister Mataáfa for the invitation to join them for this important discussion.
Keeping alive the goal of limiting global warming to 1.5 °C is the ultimate goal for SIDS. It requires our collective commitment and most importantly - Action!
Climate Finance is often framed as a technical issue, but at its core, it is a question of justice.
For SIDS, accessing climate finance remains one of the most pressing challenges, which is clear in the Antigua and Barbuda Action for SIDS.
AOSIS approach on climate actions is clear and is a priority, and I acknowledge Samoa as Chair of AOSIS for all its efforts.
We are on the frontline of multiple world crises - including climate change and debt.
Responding to disasters is more expensive for SIDS. Debt is more expensive to service. Infrastructure is more expensive. Overseas Development Assistance (ODA) from partner countries doesn't stretch as far.
The current international financial architecture is inadequate to meet the needs of vulnerable countries.
IMF has estimated that Pacific Island Countries each need between 6.5% and 9% of GDP per year in financing on average for adaptation infrastructure, which equates to almost US $1 billion per year.
We do not have the fiscal space or resources to fund our own climate priorities, even if we wanted to.
The international community failed to implement their 2009 pledge to provide US$100 billion per year to address climate change impacts in the developing world.
The New Collective Quantified Goal (NCQG), will be adopted at COP29 in Baku, Azerbaijan later this year replacing the $100 billion goal.
Much higher amounts of provided finance must come as grants and highly concessional loans, to reflect the needs of developing countries without driving them deeper into debt.
Fiji acknowledge Germany's climate finance support, through bilateral and multilateral climate funds. ie. Green Climate Fund (GCF), Adaptation Fund (AF) Global Environment Facility (GEF), GIZ and so on.
In particular, this year has been a momentous year for Fiji and Germany as we strengthen further our cooperation with the opening of the Federal Republic of German Mission in Suva. Thank you Chancellor Scholz for that.
Excellencies, the major asks from Fiji which mirrors most SIDS include:
Funders need "to facilitate faster and easier access to climate finance in such a manner that the climate change priorities of Pacific communities, rather than the priorities and policies of the donors, are driving the regional portfolio of climate change projects.
Strong and meaningful commitment to increase in grant allocation;
Increase in concessional loan financing - which is characterized by lower interest rates and longer grace periods and repayment terms;
Traditional measures of development insufficiently capture vulnerabilities. The Multidimensional Vulnerability Index (MVI) (adopted by the General Assembly in July), is a vital tool to help SIDS gain access to the concessional financing needed to survive the climate catastrophe. Mainstreaming the MVI across climate financing requirements is critical.
Fiji Climate Financing Initiatives
Fiji's National Climate Finance Strategy zooms into the key investment priorities for both mitigation and adaptation across 12 sectors in the economy over the short (2022-2026) and medium term (2026-2029).
The strategy is an innovative and ambitious summary of climate related priorities that if fully funded, will ensure the Fijian economy is climate resilient.
The strategy comes ready with a list of project ideas that have the potential to be developed further into bankable proposals that can be submitted to Fiji's development partners (especially the multilateral climate funds such as the Adaptation Fund and the Green Climate Fund) for financing.
Accreditation of the Ministry of Finance to the Green Climate Fund and the Adaptation Fund. This would be an important opportunity for Fiji to access greater climate financing to implement large scale projects that will contribute to climate action in the nation.
Currently, the Fiji Development Bank as Fiji's only Direct Access Entity to the Fund has a limitation of USD 10 million per project and the Bank is accredited for loans only.
Fiji's Climate Relocation of Communities Trust Fund (CROC) for the planned relocation of communities in Fiji that are adversely affected by climate change. The Trust Fund is a dedicated source of financing for addressing the complex operations involved with the planned relocation of at-risk communities.
Work is in progress on Fiji's Disaster Risk Financing (DRF) Strategy that presents a comprehensive framework aimed at reducing the economic and fiscal impact of disasters by strategically combining various financial instruments.