Explainer: Why did the U.S. just give $87.3 million to Palau?

 

On 1 October, 2018, Palau celebrates its 24th Independence Day, with a welcome birthday gift of $87.3 million from the United States Department of Interior.

The $87.3 million represents a down payment of a larger economic assistance package of $123.9 million that was appropriated in the U.S. National Defense Authorization Act and the 2018 Omnibus Bill signed into law by President Trump. The funding is actually overdue and a relief for civil servants and elected officials from both Palau and the U.S. who have been working diligently to get the funding secured from the 2010 Compact Review Agreement (CRA).

What can it be used for?

According to a letter signed by U.S. Interior Secretary Ryan Zinke to Palau President Tommy Remengesau, $65.2 million will be paid to the Compact Trust Fund and provides $22.1 in additional economic assistance.

The total funds, $123.9 million, were provided as a lump sum to be allocated as determined by the 2010 Agreement. The terms originally specified in the CRA were for continuing current grant assistance, although at a declining level. Additional resources were provided to support the Compact Trust Fund, infrastructure maintenance and capital projects.

Zinke Letter
Source: Palau Government Facebook post.

While the creation of the Palau Compact Trust Fund has been an important feature of original Compact, it has led to its share of disputes in part due to its lower than expected rates of return. According to an economic review from the Graduate School:

“The CTF was intended to provide $5 million annually from FY1999 to FY2009 and then $15 million annually for government operations through the Compact’s 50th year in FY2044. However, these projections were based on the CTF’s achieving an annual return of 12.5 percent. As it turned out, the CTF achieved a 7.47 percent return through FY2009. This result was actually slightly better than the blended benchmark market rate of return of 7.32 percent over the same period; however, based on projections made at the end of FY2009 the CTF would have failed by FY2022, long before the Compact objective of providing level funding through all 50 years (FY2044).”

Palau has consistently referenced the “inflation adjustment factor” and has sought to have the remaining funds “front ended” so they can be invested to protect from inflation until zeroed out. Having funds in a money earning instrument able to be monitored by both governments provides for transparency and understanding. The money is intended to be subject to a withdrawal schedule under the agreement, but is not part of the documents released publicly at this stage.

Why Palau?

The U.S. and Palau have a special relationship via the Compact of Free Association. It is separate but similar to the Compact of Free Association with the Republic of the Marshall Islands and Federated States of Micronesia (with all three countries referred to as the ‘Freely Associated States’ or FAS). Essentially, the Compact provides for U.S. economic assistance (including eligibility for certain U.S. federal programs), defense of the FAS, and other benefits in exchange for certain operating rights, denial of access to the territory by other nations, and other agreements.

Importantly, flashpoints in the South China Sea and Korean Peninsula have helped revive U.S. policy attention and financial support for the Freely Associated States. In a statement, U.S. Interior Secretary Zinke said, “The U.S. Insular Areas are on the front lines of North Korean aggression and are an important part of the strategic defense for our nation. Authorizing full funding for the agreement is an important element of the Pacific national security strategy to maintain stability in the Western Pacific Region and we look forward to continuing our work with Congress to get this job done.”

Geopolitics over the last several years combined with a new administration have led to improved policy coordination and a whole-of-government approach to its bilateral relationships; U.S. Departments of Interior, State, Commerce, Health & Human Services, Education, Homeland Security, Energy, and others are working much more closely than in recent memory. This has been essential in moving forward interests of both the U.S. and Freely Associated States.

Timeline of the U.S. – Palau Compact

Untitled presentation

What’s next?

Although funding for the Compact Review Agreement was just reignited, it appears the term of the Agreement will still expire at the end of FY2024 and further funding thereafter will be provided from distributions from the Compact Trust Fund. Almost more important than direct financial assistance for Palau are the many federal programs and services Palau currently benefits from that are provided through annual Congressional appropriations. The range of programs included within the Compact include: Postal Services, FDIC, NOAA, Pell grants, FAA, education, health programs, and so forth which are subject to Congressional authorization.  

Palau is a large ocean state, made up of more than 21,000 people and hundreds of islands. Its most pressing issues are dealing with non-communicable diseases, infrastructure development (including for tourism), advocating for global climate action, and sustainable management of its maritime zone. These are all medium and long-term issues that require sustained budgeting and attention.

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Plastic Battle in the Pacific: Is it too late to win the bin war?

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There’s no time like the present to reduce consumption of plastics, and at minimum reuse and recycle. In the Pacific, we are facing questions on what to do with our own rubbish and imports that continue to float onto our shores. Recent reporting about the well-known “Great Pacific Garbage Patch” estimates that there are more than 78,000 tonnes of plastic in an area of about 1.6 square kilometers. The rubbish patch has grown substantially, helped by extreme events like the 2011 tsunami in Japan.

This year, for better or for worse, certain trends are creating a momentum of impact on the plastic landscape. At the national level, some governments are refusing to take notice. Leaving recycling up to the market and local level to regulate has meant inconsistencies in costs and infrastructure across districts and states and impeded an effective national movement in many countries.

In addition to what is floating in the ocean, plastic and other recycling is piling up on land in Australia, the United Kingdom, Samoa, the European Union, and elsewhere as China’s restriction on imports of waste takes effect. According to the ABC, the ban will impact about 619,000 tonnes of materials worth $523 million in Australia alone.

But, when one recycling bin closes, sometimes, another one opens. This presents an opportunity to transform the industry and societal behaviours, take leadership, and call out harmful practices.

We’ve heard positive news from industry recently, who noticed rubbish piling up in the Pacific. Rather than leaving the Pacific islands with empty shipping containers after unloading exports, China Navigation wants to pick up rubbish and recyclable materials for free. It is still figuring out where and how to process the recyclables. Pacific Recycles in Samoa is the only major recycling operation in the Pacific islands, and is aiming to improve quality of materials so that New Zealand or other countries will accept the rubbish.

Unsurprisingly, Pacific island leaders are acting. Governments of Vanuatu, Palau, Marshall Islands, and American Samoa have signed on to banning single-use plastic bags. Some have also adopted levies on bags or bottles. In New Zealand, a petition to ban plastic bags was accepted at Parliament in February.

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In Australia, waste industry and environmental advocates are calling on the government to take action on regulations to encourage a circular economy or ensure purchasing of recycled products in government procurement. The federal government has signaled it is an issue for state and local governments; so for now at the lowest levels, local governments like the Hornsby Shire Council in the Sydney suburbs have it on their agenda to find new solutions for recycling and to consume less plastics.

While China has framed the ban on imports of recycling as a way to improve its environment, it could lead to an increase in new production of the same plastics. China’s demand for some plastics, particularly polyethylene, are forecast to rise to make up for the loss of recycled plastic.  Producers, then, should take more responsibility for managing the environmental impact of the full lifecycle of their products. Consumers can also refuse to create demand for certain plastics, recycle, and utilise the local resources available to understand lifestyle habits.

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Clean beaches don’t necessarily mean a clean ocean. Manly Beach, Australia.

It seems no beach or stream is free from pollution, but there are plenty of groups and individuals working to fix that. For example, the organisation Clean Up Australia has more than 7,000 registered clean up sites, empowering local communities with tools, networking, and knowledge. We know that commercial fishing gear make up a significant portion of ocean rubbish and have their own harmful impact on wildlife; recycling nets and other gear has turned into an effective business for more more than a few startups, converting them into carpets and other consumer products.  Bringing government, industry, and community groups together is essential to not only creating projects like those funded by the Australian Packaging Covenant but also to understanding global needs and expanding possibilities.

Pacific Climate Change Conference Identifies Contradictions & Capacity

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Oriental Bay, Wellington, New Zealand. Credit: Genevieve Neilson

The likelihood of conferences on climate change to be impacted by severe weather events is on the rise. In February 2018, many participants of the Pacific Climate Change Conference were delayed or prevented from arriving in New Zealand’s capital city, Wellington. We participated in the conference because we understood the grave dangers that lie ahead to local communities and countries if there is no action to prevent a rise in temperature above 1.5 degree Celsius or a focus on adaptation. And, Cyclone Gita strengthened the resolve of academics, physical scientists, consultants, activists, and project planners to press for change. With the Pacific islands at the forefront of climate change, having a conference and community dedicated to showcasing work in the region helps to identify future needs for the most important transnational issue of our age.

Presentations on the world of climate finance, indigenous voices, and the economy provided contradictions in the way these issues are handled by policymakers and academicsPacific_ocean_news. First, there is a confusing ‘spaghetti diagram’ of funding models and mechanisms for attaining climate finance. As I’ve written, those that need it the most often have the least human and financial resources to submit project proposals. One presenter provided an example: a proposal for a $9 million project in one Pacific island country took 6 years and $300,000 to complete. Additionally, some overseas development organisations are using access to climate finance in order to climate-proof their existing aid projects.     

With panels and a keynote session on indigenous voices, the conference provided a platform to share knowledge and provide suggestions for non-indigenous researchers and policymakers. There was a major call to enable indigenous communities to protect traditional land-based and maritime cultural practices. Their rights to environmental self-determination in New Zealand and elsewhere have been eroded in the face of recommendations from external consultants.

Moreover, there are multiple levels of governance regulating adaptation projects but they are not all connected; in one example, local tourism operators in Samoa were not away of national and regional climate adaptation programs that were intended to benefit the tourism industry. Rather than claiming expertise and recolonizing indigenous practices, Western academics and policymakers should be more inclusive by inviting indigenous communities to the table to showcase examples of holistic approaches to ecosystem and economic planning.

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New Zealand Parliament, Wellington, New Zealand. Credit: Genevieve Neilson

Criticisms were rife of politicians and businesses who have, in Sir Geoffrey Palmer’s words, “discounted the future in place of the present.” Dealing with climate change requires long-term planning and a transformation of lifestyles. Action is hampered by political cycles and people who think we can simply “trade our way out of climate change.” Christopher Wright from the University of Sydney explained how advanced economies have failed to act because neoliberalism both masks capitalism as the problem and exacerbates it by framing business and markets as the solution. Regulatory intervention and promotion of renewables are options, but highly unlikely on a global scale. Rather, he sees divestment and social mobilisation as the most productive paths for society to disrupt the status quo discourse.

Existing international law is also not sufficient to change norms and handle existing crises. Presenters discussed how history has shown that states are not inclined to follow non-binding rules whether or not they relate to fossil fuels. Even when rules are written, such as those around deep sea mining in the Pacific, they are made in the interests of the extractors rather than indigenous and local communities who have rights to their ocean and land.

More questions than answers were posed on the future statehood and rights of those citizens who lose their islands due to climate change. Kiribati and Tuvalu are in line to face these challenges and will rely on goodwill from other nation-states. How will they retain the connection to their culture and sovereignty if their land disappears? New Zealand’s temporary visa scheme is a step forward, but not a permanent solution.

So while problems of political will that stunted progress in climate change work are still present, they are mitigated by airing them out in the open and enabling discussion of alternative solutions.

There is a great and urgent need for action and research on all fronts (top-down and bottom-up, adaptation and mitigation) in the Pacific. The Conference provided hope that there will be more roles, voices, capacity-building, and legal debates for the Pacific.

Participation from political leaders like Samoa Prime Minister Prime Minister Susuga Tuilaepa Sailele Malielegaoi, NZ Minister for Climate Change, Hon. James Shaw, NZ Minister for Pacific Peoples, Hon. Aupito Tofae Su’a William Sio, Papua New Guinea Provincial Governor Hon. Gary Juffa alongside grassroots activists the Pacific Climate Warriors, 5 Gyres, Tina Ngata, and well-known researchers Dr. Michael Mann, Aroha Te Pareake Mead, and others showed the real depth of commitment and knowledge in the region.

The Pacific is at the centre of climate change and many participants called for more research for the region and by local experts and communities. It is needed not just for the Pacific islands, but also to monitor things like sea level rise for the rest of the world. Because, as Prime Minister of Tuvalu says, “save Tuvalu and you will save the world.”

Why Marine Protected Areas Matter

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Redfish Rocks Marine Reserve, Oregon, U.S. source: Flikr

On August 26, 2016, the Obama Administration announced the expansion of Papahānaumokuākea Marine National Monument northwest of Hawaii from 360,000 to 1.5 million sq km. It is the largest no-take marine protected area (MPA) and the largest protected area in the world, land or sea. Coming at the end of the administration, the executive order demonstrates President Obama’s desire to have conservation as part of his legacy. More importantly, it is a reminder to the American public that its government must take measured steps to protect against the changing climate and support sustainable fisheries.

MPAs are not new, and are an important tool in government policy for conservation and fisheries management. In the U.S., they include a variety of environments, including open ocean, intertidal zones, estuaries, coastal areas and the Great Lakes. Many U.S. MPAs are mixed use, but some are no-take, which prohibit commercial and recreational extraction to enable ultimate protection for marine ecosystems. MPAs protect all types of habitats, plants and animals within U.S. waters, and even includes protection of shipwrecks or other cultural resources.

The purpose, management and legal authorities of MPAs also varies in the U.S. In 2000, President George Bush issued Executive Order 13158 which supported a comprehensive system of MPAs and established the MPA Center; yet it did not contain a mandate to override federal or state regulations or procedures. President Bush also originally designated the Papahānaumokuākea Marine National Monument in 2006, and as well as the Marianas Trench, Pacific Remote Islands, and Rose Atoll Marine National Monuments in January 2009. Overall, in the U.S., the National Oceanographic and Atmospheric Administration (NOAA) within the Department of Commerce oversees a majority (97%) of MPAs.

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The National Marine Protected Areas Center maintains a Classification System which functionally describes MPAs using five characteristics common to MPAs: conservation focus, level of protection, permanence of protection, constancy of protection and scale of protection. These areas of classification dictate the purpose of establishing an MPA, “what it is intended to protect, how it achieves that protection, and how it may affect local ecosystems and local human uses.”

According to NOAA, the U.S. has more than 1200 MPAs which cover 26% (3.2 million sq km) of U.S. waters. No-take MPAs cover about half of that area, or 13% (1.5 million sq km). In comparison, about 14% of land in the U.S. is protected, and U.S. waters are 1.4 times greater than the country’s land area (12 million sq km).

There are no federal mandates to set aside a specific percentage of the U.S. marine environment for protection, but some proponents of conservation believe there should be targets. In a recent statement, President Obama acknowledged that Pacific islands are at the forefront of the impacts of climate change with rising sea levels and rising temperatures. At the IUCN World Congress, Palau President Remengesau announced his desire for 30 percent of global waters to be protected (currently only 2 percent is protected). In Palau, 80 percent of its maritime territory has been designated a sanctuary to stem the effects of overfishing. With the State Department-led Our Ocean conference upcoming, this issue of global expansion of marine protection should stay on the agenda.

In part because they can be designated or classified in different ways (i.e. some areas can be more protected than others), MPAs are not controversial and receive bipartisan support. Importantly, they also require minimal effort from the American public; they do not require modification of the majority’s everyday lifestyles, but their complicity shows in a way that Americans care for the environment.

Marine protected areas will experience the same impacts from climate change as the wider ocean and coastal areas; but the intention is to create a pristine and protected laboratory to learn from these changes as well as to regenerate marine populations decimated by overfishing, IUU fishing, and bycatch. Protection from commercial and in some cases recreational fishing creates a space where coral and fish alike can take refuge. Ocean acidification continues to threaten species, especially coral reefs, and MPAs are intended to support ocean resilience. Scientists plan to monitor the fragile environment, and hope that by expanding the monument, it will also help nearby ecosystems to adapt.

Pacific Small Island States Unify for Climate Finance

While much of the world is still thinking about Brexit and its implications for their economy, Pacific island nations are racing against the rising waters as well as funding opportunities for climate resilience. As I’ve written previously, small island states must learn from each other in order to benefit from the complex world of climate finance. Leaders from the Pacific Islands Forum Smaller Islands States (SIS) [which includes Cook Islands, Kiribati, ‎Nauru, ‎Niue, ‎Palau, the Republic of the ‎Marshall Islands, and ‎Tuvalu] are heeding that call, having solidified avenues for closer cooperation as part of the Framework for Pacific Regionalism. While all the areas of collaboration are what one would expect in the Pacific, the coordination on climate change is the most important and essential. By working toward creating a joint proposal to organizations like the Green Climate Fund, SIS will be able to leverage internal expertise and build a robust platform for future climate financing applications.  

At a Special Meeting of the SIS on June 24, 2016 in Palau, leaders agreed to the SIS Regional Strategy to enable greater attention to unique vulnerabilities of the SIS. Host Palau President Tommy Remengesau has been one of the greatest advocates for SIS and Small Island Developing States (SIDS) in international fora. The new framework that SIS will operate under will complement existing policy advocacy with the technical component of climate finance. Additionally, the Pacific Islands Forum’s March 2016 accreditation to the Green Climate Fund as an observer presents an opportunity for internal knowledge creation.

Individual states have learned from the climate finance process as well and will be able to build off their experiences and share best practices. For example, Tuvalu was recently granted $36 million for its Tuvalu Coastal Adaptation Project; but it took more than one round of applications to succeed, because the country filed its technical specifications incorrectly. With the support of the Secretariat of the Pacific Regional Environmental Programme (SPREP) and the UN Development Programme, they were able to highlight the country’s vulnerability and correct technical aspects, creating a winning the application.

For the SIS group, the Cook Islands has also had an important success with the Green Climate Fund. In March 2016, the Cook Islands was the first Pacific country to receive readiness grant to help strengthen its National Designated Authority in order to work with the Green Climate Fund. The Cook Islands can use its experiences to inform SIS neighbors and others at the Pacific Islands Forum.

Finally, this move by Pacific states to work together on climate finance is important because governments have been urged to accelerate funding applications for the Green Climate Fund. This call is a signal that other countries have had difficulties with their applications outside of the Pacific and can benefit from shared best practices. It acknowledges the lack of a level playing field for smaller states that are constrained by physical and human capital.

Spending by Country

Source: http://www.climatefundsupdate.org/regions

With or without the benefit of large internationally-funded projects, Pacific states will continue to find ways to adapt to the changing climate and the threats being posed to their livelihoods. But it is in their best interest to continue to seek international funding, when everyone else is doing it. The amount of approved project spending in East Asia and the Pacific shows Indonesia, China and the Philippines have been the largest recipients of climate financing. Importantly for smaller countries, regional mechanisms do exist such as through the SPREP. Yet it will be the job of individual leaders to form not only greater unity around policy advocacy for climate change but also to ensure the relevant departments collaborate effectively on the bureaucratic and technical aspects of the finance application process.

Top 5 Stories to Follow in the South Pacific in 2016

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Auckland, New Zealand, where the Trans-Pacific Partnership will be signed. Photo Credit: Genevieve Neilson

 

  1. National Elections

This year, there will be national elections in Australia, Kiribati, Nauru and Samoa. Australia’s relatively new Prime Minister Malcolm Turnbull will be tested at the polls, and we are yet to see whether the public concentrates on the candidate’s personality or international issues, specifically, the Trans-Pacific Partnership Agreement and immigration. Pacific island voters face local issues like storm recovery, welfare and some big personalities of their own.

On January 22, Vanuatu held snap elections because 14 Members of Parliament, including the Prime Minister, were involved in a corruption scandal last year. Kiribati goes to the polls on January 30 to replace President Anote Tong (due to term limits), who has been at the forefront of international advocacy for action on climate change. Next, Samoa will hold elections on March 4, with Prime Minister Tuilaepa Sailele a “reasonable bet” given that he has held office since 1998. Last year, Nauru was plagued by concerns over its rule of law; because of this its leaders have asked for support from the Commonwealth Secretary when the country holds elections in June. Elections in Australia are not yet scheduled, but should take place before the year is over. Former Prime Minister Tony Abbott was ousted in September 2015 and replaced by Malcolm Turnbull; the new leader is seen as more open to debate than Abbott, who is contesting his Parliamentary seat again this cycle. Locally, Australia’s Northern Territories will vote in August to determine whether the government can lease the port of Darwin to Chinese company Landbridge.

Bonus: NZ Binding Flag Referendum

New Zealand Prime Minister John Key is behind the referendum to change the national flag. Critics call the move a vanity project in legacy building, in the absence of meaningful debates about New Zealand culture, Maori rights, or becoming a republic. In shocking news to many, late entry and hipster crowd favorite Red Peak did not make the final vote. There will be a binding referendum between March 3-24 requiring voters to select between the current flag or a silver fern design by Kyle Lockwood. Voters in Auckland confused about which design to select will get a demonstration on the Auckland harbor bridge.

  1. West Papua

The separatist movement in West Papua is as alive as ever, and human rights abuses committed by Indonesian forces have reportedly increased under the Jokowi government. In an address at the United Nations General Assembly in October 2015, Solomon Islands Prime Minister Manasseh Sogavare called on the United Nations Human Rights Council to step up monitoring and investigating efforts for human rights abuse and violations in Papua and West Papua. In November, Human Rights Watch published a 73-page report condemning the government of Indonesia for the lack of access for foreign journalists in the region. Meanwhile, in December, the Indonesian government warned other countries to respect its sovereignty and reportedly ordered international NGOs to close their offices in Papua. Much of the wealth from the resource-rich province goes to Jakarta, leaving West Papuans relatively poor.

There seemed to be a small amount of traction in the case for peace. Having spent the last 10 years in prison, West Papuan separatist leader Filep Karma was released from prison five years early. Yet, on the same day that Indonesian and Australian defense ministers met to declare closer ties, a young West Papuan was shot by the military while protesting a palm oil company. Pacific Islands Forum may be a platform for intervention, particularly when it releases information about its “fact finding mission” agreed to at the last Leaders Summit.

  1. Pacific Fisheries

Overfishing has been a significant problem for the Pacific Island region, leading to competition for depleted fish stocks. Ineffective international management of the Pacific tuna supply, strong consumer demand and weak monitoring of vessels have led to overfishing, illegal, unreported and unregulated (IUU) fishing, and bycatch. And, in some cases, operators of IUU fishing vessels disregard basic labor standards.  Illegal fishing cannot be solved unilaterally; Pacific Island Countries will need support from their island neighbors, larger international actors like the United States, Indonesia, Japan and Australia, as well as support from non-government groups.

Marine sanctuaries are one option for island states to protect local fisheries and recover populations lost due to overfishing.  In October 2015, Palau created one of the world’s largest marine sanctuaries that covers 80 percent of its Exclusive Economic Zone (EEZ). You can read my article focusing on Palau for the Islands Society here. Palau lacks the enforcement ships to ensure its sanctuary is protected. In addition, the United States government has reneged on a fishing agreement with Pacific island nations which will leave them in a budget shortfall. Island states like Palau hope to replace declining income with an increase in tourism by wealthy travelers and will need international support to maintain sovereignty over its fisheries.

Among other groups, the Pacific Forum Fisheries Agency is responsible for coordinating these efforts, and should be more vocal internationally this year.

  1. Trade Agreements

The signing ceremony for the Trans-Pacific Partnership Agreement (TPP) is scheduled for February 4, 2016 in Auckland, New Zealand. Meanwhile, the fate of the agreement is still uncertain. Protesters in Canada, Malaysia, New Zealand, and the United States among others continue to demonstrate their displeasure for the 12-nation pact. As Canada’s government recently made clear, “signing does not equal ratifying.” In fact, ratification could take up to 2 years. Even in the United States, passage of the agreement through Congress is anything but certain; in an address in Washington, Australian Prime Minister Malcolm Turnbull lobbied the American Congress on the agreement. But what does the TPP mean for the Pacific? Australia and New Zealand are the only South Pacific countries party to the agreement, yet the agreement allows other states to join in the future.

The Pacific is currently negotiating its own free trade agreement, Pacific Agreement on Closer Economic Relations, or PACER-Plus, which focuses on removing tariffs and duties. Last September, PIF leaders agreed that they wanted negotiations for PACER-Plus to conclude by mid-2016, yet cohesive political leadership is lacking. Fiji and Papua New Guinea have warned about the potential inability to regulate and protect specific industries; PNG believes it will hurt its manufacturing sector. Additionally, non-government groups have questioned the ability of the agreement to produce significant benefits for island countries under its current status; while it enables Australian and New Zealand access to Pacific countries, it may not similarly provide support mechanisms for local producers to get their goods to the market.

As larger island countries and regional leaders, Fiji and PNG may have too much to lose if they walk out on PACER-Plus, much the way some states feel that have already agreed to the TPP. As these processes unfold, Pacific states will be watching how the TPP impacts smaller and less diverse economies.  

  1. Climate Change Leadership

Since 1992, sea levels have risen nearly 8cm according to Nasa, and the Pacific has experienced a faster increase than other areas.  The plight of Pacific Island states has been well-documented by The Guardian and Pulitzer Center. Maintaining international commitment, funding and access to funding for climate change will be critical to adaptation and mitigation efforts. Kiribati President Anote Tong has reiterated that climate negotiations are not a game but “a matter of survival.” In part because of the persistence by Pacific island leaders, the latest UN climate agreement in Paris set a target of 1.5 degrees Celsius as opposed to the 2C limit preferred by industrialized states.

For 2016, the Pacific will need to continue to speak with a unified voice. Kiribati President Tong and Palau President Tommy Remengesau have led advocacy efforts, and increasingly Fiji under President Frank Bainimarama is making its voice more prominent. The Pacific Island Development Forum (PIDF) hosted by Fiji is now an observer in the United Nations; leaders have used the PIDF to caucus because it excludes Australia and New Zealand. The group came together for the 2015 Suva Declaration on Climate Change because, according to Bainimarama, “We in the Pacific tend to speak softly. It is in our nature. But on this issue, we needed to cry out with one voice, enough is enough. And we have. And it is all the more powerful for that.”

In June 2017, Fiji will host the United Nations Conference on Oceans and Seas. Throughout the year, but particularly in the lead up to regional and global meetings, look for Fiji to take an aggressive advocacy position.

Leading at the Margins: Palau’s Role in the 2014 Pacific Island Forum

This year states are being asked to take action on sustainable energy projects “irrespective of political status.” As host of this year’s 45th Pacific Islands Forum from July 29 to August 1, leaders of the Republic of Palau are doing their part to call global attention to the plight of Pacific islands. Palau’s efforts coincide with the United Nations designation of 2014 as the ‘Year of the Small Island Developing States’. Palau’s culture of conservation and preservation has helped the state to become a leader in climate adaptation and a formidable partner in pursuing multilateral solutions to migration challenges.

Now is the time to connect conservation with development. Nonprofits, government and the private sector are working together through the Global Island Partnership (GLISPA) in an attempt to build resilient and sustainable island communities. Leaders of small island states like President Tommy Remengesau of Palau seek to reverse the trend of increasing spending on defense budgets and instead spend more on conservation, and peaceful relationship-building efforts. Through GLISPA, actors are trying to find “island solutions to island challenges” because “nature forms part of [their] economy.” At a GLISPA meeting earlier this year, Palau’s Ambassador to the United States Hersey Kyota quipped that the country has an informal motto to “take enough for yourself, leave some for others.” Over time, traditional concepts of conservation have changed with technology, enabling people to store more and for companies to produce more than they need to live sustainably.

President Remengesau is expecting at least 500 people to attend the Pacific Island Forum this year, including heads of state. During his recent visit to Japan, Remengesau extended an invitation to Prime Minister Shinzo Abe to attend the forum in the wake of Japan’s increasing development projects in the region. Japan continues to add to its Aid-for-Trade programs including a new agreement in June with the Kingdom of Tonga which will help the state to purchase goods from Japan’s earthquake and tsunami-damaged region. To counter China’s diplomatic and economic efforts and as part of the ‘rebalance,’ the United States has notably increased its presence at PIF meetings since Secretary Clinton’s visit to the Cook Islands in 2012; last year the US sent Department of Interior Secretary Sally Jewell along with a delegation also representing Departments of State, Homeland Security, Energy, Agriculture, Health and Human Services and US Pacific Command. In contrast, New Zealand Prime Minister John Key may not attend due to upcoming elections in September; but, NZ recently created a new position and appointed former Labour Member of Parliament Shane Jones as Ambassador for Pacific Economic Development, to help coordinate and boost the country’s relationships, development programs and fisheries projects.

More important than the number of attendees is the commitments that can be made and followed through by larger states, and the impact a cohesive Pacific group of nations can have on swaying the international community to not only change their behaviors but help . At last year’s PIF meeting in the Solomon Islands, members signed the Majuro Declaration and made specific commitments, hoping to launch a “new wave of climate leadership.” So far it seems Australia has been the only state to move away from its commitments, with Prime Minister Tony Abbott holding the country’s plans hostage; Australia previously agreed to have 20% of its electricity generated from renewables by 2020 as well as its pursuit of emissions reductions targets. Small island states meanwhile created ambitious targets to transform their economies: Niue and the Cook Islands aim to generate 100% of their energy from renewables by 2020, Vanuatu seeks 65% by 2020, and Nauru and Solomon Islands have targets of 50% renewable energy generation by 2020 and 2015, respectively.

Emissions reductions are a more delicate political issue than changing sources of energy for both large and small states because of the economic implications for heavy polluting industries in particular and businesses in general; in the Pacific though, according to Kyota, the tension surrounding who is to blame for high emissions levels inducing climate change becomes old news when states must deal with the consequences including ocean acidification, overfishing and rising sea levels. Kiribati for example is facing certain sea level rise that will make its islands uninhabitable, and the government is investigating options for mass migration.

Palau has to evolve with “climate mitigation,” according to Ambassador Kyota, due to “things that were not caused by us.” Palau has a population of about 20,000 people, and is currently facing prospects of severe drought this year due to El Nino weather patterns. Multilateral cooperation will be critical to changing the rhetoric and discourse of climate adaptation and mitigation, and should aim to prevent free-riding. In opposition to Tony Abbott’s complaints about economic impacts of carbon pricing and other climate-related regulations, Kiribati’s President Anote Tong said “We’re not talking about the growth GDP, we’re not talking about what it means in terms of profit and losses of the large corporations, we’re talking about our survival.”  For Kiribati, “our future is already here … we will be underwater.” President Tong recently announced that Kiribati would prohibit commercial fishing in the Phoenix Islands Protected Area, which is about the size of the state of California. President Remengesau has also recently called for a total ban on commercial fishing, in the country’s Exclusive Economic Zone, which would create a sanctuary an area the size of Ukraine. Banning export-oriented commercial fishing is likely to have a larger impact on government budgets than on local fishermen and food supplies, as fishing revenues come primarily from selling permits to overseas vessels. For Kiribati, Palau and others, the short term losses will outweigh the benefits of restoring stocks of tuna for global food security and regional conservation efforts.

Thanks to Japanese investment through the Pacific Environment Community Fund, in March this year Palau installed a new solar power generation system and salt water desalination plant which exemplifies the water-energy nexus. It will reduce reliance on fossil fuels while also providing clean, safe drinking water to residents. According to the Pacific Islands Forum Secretariat, administrator of the fund, the governments of Samoa, Tuvalu, Cook Islands, Nauru, theSolomon Islands, Fiji, Federated States of Micronesia, Kiribati, Niue, Republic of Palau, Republic of Marshall Islands and Vanuatu have to date utilized the PEC Fund “for national renewable energy and seawater desalination projects.”

Many events are happening this year specifically to coincide with the Year of the Small Island Developing States, and there are positive signs that the international community is recognizing the opportunity to act to support the efforts of island states. On June 17, US President Barack Obama proposed to create the world’s largest marine sanctuary in addition to other actions at the State Department-led “Our Ocean” conference; President Obama seeks to use his presidential authority if necessary but will work to create guidelines based on stakeholder input. The US, Japan and China as the world’s largest economies must continue to follow and model the efforts of the smallest states as they transform what we think of as sustainable development. As water increases in scarcity and ocean acidification intensifies in the Pacific, Australia should reverse its mistakes on climate initiatives. The PIF meeting in July hopes to continue the groundswell of action, leading to a well-prepared UN Conference on Small Island Developing States to be held in Samoa in September. At each multilateral setting, Japan, the European Union the US have continued to display their support for sustainable development initiatives, recognizing not only the pristine environment to be saved and peoples to support, but also the potential to showcase to their own publics the power of creating more areas for conservation and the need for a shift in discourse. It will be up to all actors – including Palau as leader of the PIF – to keep one another engaged in this critical year.