Unlocking access to climate finance for Pacific Island Countries
Pacific island countries (PICs) are globally among the most exposed and vulnerable to climate change and natural disasters and are also among the least equipped to adapt, putting their economic development and macroeconomic stability at risk. Climate adaptation efforts in the Pacific are critical, but costs are substantial. Debt levels for some are high and rising, exacerbated by the pandemic. Average investment needs for climate-proofing infrastructure are estimated at 3.3 percent of GDP annually for the Asia-Pacific region during the next decade, but average between 6½ and 9 percent of GDP annually for PICs. While climate change is primarily caused by emissions from large advanced and emerging market economies, the Pacific islands are among those most heavily impacted by the adverse effects of climate change. This paper provides an in-depth overview of access to climate finance for PICs, evaluating successes and challenges faced by countries and proposes a way forward to unlock access to climate funds.