Fiji has taken significant steps toward advancing its climate action agenda with the announcement of an interim carbon trade pathway by the Minister for Forestry, Hon. Alitia Bainivalu. This innovative pathway aims to maintain the momentum of Fiji’s commitment to carbon trading as outlined in the Emission Reduction Agreement with the Forest Carbon Partnership Facility’s Carbon Fund, which is administered by the International Bank for Reconstruction and Development.
This new mechanism will enable the transfer and trading of Emission Reduction Units (ER Units) as final regulations under Part 10 of the Climate Change Act 2021 are being finalized. The initiative is expected to help meet Fiji’s obligations under the agreement, which has a total value of USD $12.5 million (FJD $28.4 million). It is estimated that by December 2025, the first verified 922,828 ER Units will generate around USD $4.6 million (FJD $10.48 million).
Minister Bainivalu highlighted the initiative’s critical role in safeguarding landowner rights, fostering fair benefits, and underscoring Fiji’s sovereignty over its natural assets. The Carbon Fund has expressed interest in extending its collaboration with Fiji beyond 2025, noting the country’s consistent advancements in sustainable forest management.
This new development aligns with Fiji’s extensive efforts in limiting carbon emissions and enhancing forest conservation. The National Tree Planting Program, a key initiative aimed at planting 30 million trees over 15 years, has successfully seen 19 million trees planted so far, significantly benefiting local biodiversity and climate resilience.
By securing financial support for local communities engaged in forest management, Fiji is not only promoting environmental care but also creating new income opportunities for rural populations. This proactive approach emphasizes the government’s commitment to sustainable practices that yield advantages for both the environment and individuals.
As Fiji addresses the ongoing challenges of climate change, its focus on carbon trading and sustainable development presents a promising outlook for local communities and the preservation of ecological integrity. With continued initiatives and the active involvement of community stakeholders in its climate strategy, Fiji serves as an inspiring model of resilience and leadership in the global fight against climate change.