The Reserve Bank of Fiji has introduced the country’s first-ever green finance taxonomy, marking a significant stride towards fulfilling the climate finance commitments outlined at the recent COP30 conference in Belém, Brazil. According to Minister for Finance Esrom Immanuel, this new framework aims to transform global climate pledges into practical national actions. The ambitious objectives include mobilizing an impressive US$1.3 trillion annually by 2035, tripling adaptation finance, and implementing a loss and damage fund.
The initial version 1.0 of the taxonomy focuses primarily on climate change mitigation, emphasizing the energy and transport sectors—two major contributors to Fiji’s greenhouse gas emissions. This structured approach ensures that the activities deemed eligible for financing significantly advance climate objectives while avoiding harm to other environmental priorities.
Immanuel explained that the taxonomy is closely aligned with COP30’s emphasis on adaptation and resilience, engaging 59 global indicators relevant to critical sectors such as water, infrastructure, and energy. The introduction of green bonds is expected to be a crucial mechanism in bridging the US$6 trillion global climate finance gap, while also enhancing access to concessional funding for Pacific Island nations facing increasing threats from climate change.
Fiji is particularly vulnerable to climate impacts, with average annual cyclone damages estimated at a staggering five percent of the country’s GDP. The lasting effects of Cyclone Winston in 2016 serve as a stark reminder of the region’s susceptibility to such extreme weather events, underscoring the urgency for proactive measures.
This initiative not only raises hope for enhanced environmental sustainability but also emphasizes Fiji’s commitment to becoming a global leader in climate finance and environmental resilience.