The Fiji Development Bank (FDB) is set to unveil new strategies and loan products that focus on mobilizing private and blended climate finance, in collaboration with the Global Green Growth Institute (GGGI). Shomi Kim, GGGI’s representative for the Pacific, highlighted the urgent need for Fiji to secure approximately $4.4 billion for climate mitigation and an additional $9.9 billion for adaptation to meet its national climate commitments. Alarmingly, it is projected that less than 40 percent of this critical funding will come from public finance sources.
Kim stressed the pivotal role that financial institutions play in fostering private, blended, and sustainable financing solutions. She indicated that FDB is well-positioned to develop innovative financial products that support renewable energy initiatives, sustainable transportation, and investments in climate resilience. This strategic positioning enables the bank to access global climate finance as a credit entity, thereby implementing a risk mitigation approach.
During the discussions on market-driven financial instruments, Kim noted that such initiatives often yield more impactful results than traditional grant-based approaches. Setaita Tamanikaiyaroi, the Manager of Climate and Eco-Finance at FDB, representing Chief Executive Filimone Waqabaca, revealed that the bank is evolving from traditional lending models to innovative financing solutions that emphasize the enhancement of climate and environmental resilience.
The recent workshop organized by GGGI marks the culmination of a year-long technical assistance program aimed at establishing FDB as a national intermediary for climate finance. This initiative not only represents a proactive stride toward addressing Fiji’s climate challenges but also underscores the significance of collaborative efforts in achieving environmental objectives through creative financial solutions. The ongoing commitment to develop such finance mechanisms is a hopeful sign for Fiji’s sustainable future, paving the way for more resilient communities.