Fiji has launched its Green Finance Taxonomy, marking a pivotal advancement in promoting environmentally sustainable economic activities in the country. The initiative was presented last week by Finance Minister Esrom Immanuel and developed in collaboration with the Reserve Bank of Fiji (RBF), the International Finance Corporation, and the Climate Bonds Initiative.
RBF Governor Arif Ali highlighted the significance of this taxonomy as a science-based classification system designed specifically for Fiji while adhering to global best practices. The taxonomy aims to define and categorize green and sustainable investments clearly, enabling investors, financial institutions, and policymakers to direct financial resources toward projects that align with Fiji’s climate and development goals.
Initially, the taxonomy focuses on key sectors like energy and transport, which are major contributors to the country’s greenhouse gas emissions. Governor Ali explained the use of a traffic light system to categorize activities as green (aligned), amber (transitioning), or red (ineligible), based on scientifically verified screening criteria supported by strong social safeguards.
This innovative framework seeks to boost transparency and eliminate greenwashing, while also encouraging the creation of new green financial products. The Taxonomy is essential in supporting Fiji’s ambitious targets, which include achieving net-zero emissions by 2050 and transitioning to 100% renewable energy in the electricity sector by 2035.
Currently, the Taxonomy emphasizes mitigation strategies related to the energy and transport sectors, with plans to evolve and address adaptation and resilience measures alongside other environmental goals. This strategic approach positions the Taxonomy as a ‘living document,’ adaptable to incorporate the latest scientific, technological, policy, and market developments, underscoring Fiji’s dedication to environmental sustainability and climate resilience.