Creating climate financing opportunities for Pacific SIDS through the Joint SDG Fund

It consists of a.) a lack of access to climate financing opportunities, and b.) a non-existent pipeline of good bankable projects, the UN Resident Coordinator to Fiji, Solomon Islands, Tonga, Tuvalu, and Vanuatu has highlighted.

Through the Secretary General’s Joint SDG Fund, the Resident Coordinator has supported the design and oversight of many catalytic joint programmes, including, in particular, the ‘Coral Reefs Project’. This project is hands-on and cutting edge, featuring strong partnerships with the private sector. The Project is looking at investments and business models on reef-first businesses such as eco-tourism, visitor centers, sustainable fisheries, and blue carbon credits.

The Project also includes a Technical Assistance Facility (TAF) for blue economy SMEs to bring additional projects and businesses to an ‘investment-ready’ stage. In total, with the combined investment of US$9.9m from the Joint SDG Fund and the Global Fund for Coral Reefs, the Resident Coordinator aims to leverage around US$50m worth of capital into the coral reefs and blue economy in Fiji.

This project is working on four key topics:

• Effective management of 30 Locally Managed Marine Areas (LMMAs) in Fiji through private sector investment in a US $10 million blended finance facility. Beqa Adventure Divers, co-manager of the Shark Reef Marine Reserve, one of the 10 LMMAs to have gotten a concessional loan from the UN.

• A Sanitary Landfill Project in the Western Division (to replace Vanato Dump in Lautoka and municipal dumpsites from Sigatoka to Tavua) through a US$14 million blended finance facility. The aim is for the public-private partnership approach to be replicated across the country.

• An eco-fertilizer factory received a US $0.75 million investment from the UN and, again, the aim is that such factories can be replicated at other sites in Fiji.

• A Technical Assistance Facility (TAF) for blue economy SMEs and financial instruments will be established and operationalized. This will pool investments and reduce risk, work with government to improve the regulatory framework and fundraise.

The UN Capital Development Fund (UNCDF) leads the Pacific Insurance and Climate Adaptation Programme (PICAP), which has developed the first ever market-based climate disaster risk insurance, unlocking the potential of the private sector to deploy appropriate and affordable solutions.

1388 households in Fiji were covered during 2021 with the parametric microinsurance against cyclonic storms and scaling is underway with the aim of covering 4000 households in Fiji before 2022-2023 cyclone season.