The Fiji Development Bank (FDB) is launching new strategies and loan products aimed at mobilizing private and blended climate finance, supported by the Global Green Growth Institute (GGGI). Shomi Kim, GGGI’s representative for the Pacific, highlighted that Fiji needs approximately $4.4 billion for climate mitigation and an additional $9.9 billion for adaptation in order to fulfill its national climate commitments. However, less than 40 percent of this funding is expected to originate from public finance.
Kim emphasized the critical role that financial institutions play in facilitating private, blended, and sustainable finance. She noted that the FDB is strategically positioned to develop financial products that advance renewable energy initiatives, sustainable transportation, and climate resilience investments. This approach allows the bank to tap into global climate finance as a credit entity, which serves as a risk mitigation strategy.
In discussing the positive impacts of market-driven financial instruments, Kim pointed out that they tend to deliver more significant results compared to traditional grant-based initiatives. Setaita Tamanikaiyaroi, Manager of Climate and Eco-Finance at FDB, spoke on behalf of Chief Executive Filimone Waqabaca, stating that the bank is transitioning from conventional lending practices to financing models that prioritize the building of climate and environmental resilience.
The recent workshop, facilitated by GGGI, signifies the completion of a year-long technical assistance program aimed at positioning FDB as a national climate finance intermediary. This initiative not only signifies a proactive step towards addressing climate challenges in Fiji but also showcases the importance of collaboration in meeting environmental goals through innovative financial solutions.