The Reserve Bank of Fiji has launched the country’s inaugural green finance taxonomy, a landmark development aimed at advancing the commitments made during the recent COP30 conference in Belém, Brazil. According to Esrom Immanuel, the Minister for Finance, the new framework is designed to facilitate the translation of global climate pledges into actionable initiatives at the national level. Among the ambitious goals is the mobilization of US$1.3 trillion annually by 2035, a tripling of adaptation finance, and the establishment of a loss and damage fund.
The initial version 1.0 of this taxonomy prioritizes climate change mitigation, with a particular focus on the energy and transport sectors, which are significant contributors to Fiji’s greenhouse gas emissions. This structured framework aims to ensure that projects eligible for financing significantly contribute to climate objectives while safeguarding other environmental priorities.
Immanuel highlighted that the taxonomy aligns closely with COP30’s focus on adaptation and resilience by incorporating 59 global indicators pertinent to vital sectors like water, infrastructure, and energy. The introduction of green bonds is anticipated to play a critical role in addressing the US$6 trillion global climate finance gap, thereby improving access to favorable funding for Pacific Island nations that are increasingly threatened by climate change.
Fiji is especially vulnerable to the effects of climate change, with average annual cyclone damages representing approximately five percent of the nation’s GDP. The severe repercussions of Cyclone Winston in 2016 remain a poignant reminder of the region’s susceptibility to extreme weather, emphasizing the urgent need for proactive climate measures.
This initiative represents a hopeful step towards bolstering environmental sustainability and demonstrates Fiji’s dedication to emerging as a leader in climate finance and resilience on the global stage. By implementing this taxonomy, Fiji aims not only to address its immediate challenges but also to contribute meaningfully to global efforts in combating climate change.