Fiji has reaffirmed its unwavering commitment to climate action and called for urgent reforms to address the critical issue of climate finance for Small Island Developing States (SIDS).
This statement was made by Fijian President Ratu Wiliame Katonivere while speaking at the Exchange of views on International Climate Policy Including financial challenges faced by SIDS, including reform of the International Financial Architecture in New York. The event was attended by global leaders, including Chancellor Olaf Scholz of Germany and Prime Minister Fiame Naomi Mataʻafa of Samoa.
President Katonivere emphasised that 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.”
President Katonivere added that 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 percent and 9 percent of GDP per year in financing on average for adaptation infrastructure, which equates to almost US$1 billion per year.”
Furthermore, he added that 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 US$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.”
President Katonivere also added that Fiji acknowledges 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.”
This aligns with the Coalition Government’s people-to-people relations, Fiji and Germany as we strengthen further our cooperation with the opening of the Federal Republic of German Mission in Suva.
President Katonivere then recommended 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 characterised 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.
This story was originally published at Fiji Govt on 23 September 2024, reposted via PACNEWS.
