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.

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Pacific Energy Summit Showcases ‘The New Development Norm’

An aerial view of Marovo Lagoon in the Western Province of the Solomon Islands. Photo Credit: United Nations via Flickr Creative Commons
An aerial view of Marovo Lagoon in the Western Province of the Solomon Islands. Photo Credit: United Nations via Flickr Creative Commons

Pacific Island Countries are simultaneously at the frontlines of feeling the effects of climate change and creating solutions. Development projects and political commitments in the South Pacific are setting precedents and shifting the global perspective of sustainable energy. The 2013 Pacific Energy Summit in Auckland, New Zealand March 24-26 closed with strong results that will continue to drive investment in sustainable development projects.  New funding of $635 million was secured for projects throughout the Pacific. Similar to Pacific Island Forum meetings, the Summit was preceded by a Pacific Leaders Energy Summit in Nuku’alofa, Tonga that also served as a launching pad for new ideas and to assess existing projects.

 Organized by the Government of New Zealand and the European Union – major funders of development projects and tied to the region economically – the Pacific Energy Summit is another positive example of multilateral cooperation in the Asia-Pacific.  Close to 80 projects were presented at the Summit, enabling donors and the private sector to partner on projects of mutual benefit. Additional sponsors included the Australian Agency for International Development (AusAID), Asia Development Bank and The World Bank. More than half of the $635 million secured will be “in concessional loans to support over 40 of the proposed projects”($380 million), and only $255 million committed will be grant funding.

 UNDP Administrator Helen Clark recently stated that the potential for renewable energy – harnessing wind, sun and tidal opportunities – was the most promising area for development in the Pacific; a significant challenge Clark pointed out, however, is the “tyranny of distance.” Therefore it is critical that Pacific Island Countries remain united in their mutual economic, political and energy goals for the Pacific as the Pacific Island Forum continues to garner additional international observers and the Pacific Plan is reviewed this year.

 The recent Summit’s new funding will enable most Pacific Island Countries to reach a target of obtaining 50% of their energy from renewables within five years; several states are already leading the way. The Tonga Energy Road Map (TERM) was a highlight of the Leaders Summit as a model for a “well-designed and integrated country action” plan. The TERM drew an additional $6.5 million in funding from the European Union over the next three months. Last October, Tokelau became the first nation relying totally on renewable energy, in their case solar energy.

 In a statement on March 22 in Tonga, Executive Secretary of the United Nations Framework Convention on Climate Change Christiana Figueres emphasized the overwhelmingly constructive impacts of pursuing renewable energy in the Pacific nationally, regionally and internationally. For example, the Cook Islands, and Tonga spend 30% and 15%, respectively, of their GDPs on importing fossil fuels; those funds could instead be spent on adaptation, education and public health. Additionally, Pacific Island Countries making the switch to renewable energy provides necessary models of successful plans for other states. Figueres calls the plans and actions of the Cook Islands, Solomon Islands, Tokelau, Tonga and Tuvalu to transition to renewable energy for electricity generation as “a courageous example of what the rest of the world needs to do.”

 Figueres and others have called for Pacific nations to be the catalyst that the international community needs to act on real, workable climate change rules and frameworks. Countries in the Pacific will not be able to “reverse global emission trends,” but they can signal to governments and markets alike that the path toward a green, low carbon economy is irreversible and “the new development norm.” Other small island country leaders such as President of Kiribati Anote Tong and former president Mohamed Nasheed of the Maldives have played significant advocacy roles within the international community to promote the plight of small states among Climate Change difficulties. Steadily the tide is turning in favor of Pacific development projects, but it may take a continued, concerted effort by a resolute Pacific Island Forum and group of small island leaders to maintain this momentum and convince larger states to change their habits and transition to green economies.

 Was Figueres too bold in her call to action? Are Pacific Island Countries making national plans and setting energy targets that are too ambitious? As Matthew Dornan writes for East Asia Forum, small island nations in the Pacific cannot raise funds necessary for these projects internally; therefore, they must turn to international development grants and soft loans as obtained at the Summit. Ambitious targets indicate to potential funders that a country is more serious about the long-term implications of projects and so the probability is higher that the country will receive more investment. Realistic or not, these targets are a step in the right direction if they are produced from cohesive national and regional plans that seek to consider individual stakeholders.

 The Pacific has been a place for inspiration for internationally acclaimed authors and artists such as Paul Gaguin to Herman Melville and Robert Louis Stevenson since the 1800s. While states work to keep their beaches pristine, oceans full of fish and water supplies sufficient, the sustainable energy projects and forums continue to inspire enthusiasts of renewables and international collaboration alike. Renewable energy benefits the environment, local residents and businesses; however, a one-size-fits-all approach to mitigating climate change, like energy projects in other parts of the world, will not work for the Pacific. To help maintain momentum for the new ‘development norm’ in the Pacific and elsewhere, there is a distinct need to improve media coverage of the challenges and opportunities brought on by Climate Change in the Pacific. The new Carnegie program Ocean Matters is one initiative that helps to bring environmental journalism to the forefront.

Facing Regional Challenges & Pursuing Opportunities: Pacific Day 2012

On 23 May 2012, the Embassy of New Zealand in Washington, DC hosted the annual celebration of ideas, food and culture from the Pacific Islands region.  Photos of the event can be found on the New Zealand Embassy Facebook pagePacific Day has typically focused on getting different groups together in celebration of Pacific food and culture.  With the US turn to the Pacific and the strengthening of the Pacific Partners Initiative, Pacific Day 2012 had an equal focus on the social, political and economic issues important to the region.  The event began with a seminar moderated by Ernie Bower of the Center for Strategic and International Studies that included a keynote address by New Zealand Foreign Minister, Honorable Murray McCully.  A panel discussion addressed the impact and concerns of small states, climate and environmental issues, and the role of powers in the Pacific.  The reception featured entertainers from Australia, Hawai’i, Fiji, New Zealand and Samoa, as well as food and beverages from Australia, Hawai’i, the Federated States of Micronesia, Fiji, Guam, the Marshall Islands, New Zealand, Palau and Papua New Guinea.  The independent nation-states and territories from the South Pacific enjoy their differences but at different times celebrate a shared history and geography.  Other than geography, the smaller states of the Pacific face strikingly similar challenges and opportunities, hence it is beneficial for them to collaborate with states such as the US, New Zealand and Australia. 

For the major powers in the Pacific, the current outlook for the region is one of cooperative engagement and closer dialogue.  Australia, New Zealand and the US have all, in one way or another, promoted the “Pacific Century.”  As these powers seek to further engage with the Pacific, the Pacific Islands Forum will become more prominent in connecting Pacific states throughout the Asia-Pacific.  The Pacific Islands Forum meeting in Auckland in September 2011, was the first time that the three US Pacific territories – Guam, Northern Marianas and American Samoa – were granted observer status.  The focus of Pacific Day was not just on the major powers, but on examining the roles of the smaller states and the issues pertinent to the region.

In addition to the geopolitical issues that find their way into the news, Pacific nations are collaborating on pressing economic and environmental issues like sustainable fishing. In his keynote address, Hon. Murray McCully proposed that the only fisheries in the world that are not overfished are those in the South Pacific.  While China and the Philippines fight over territory and cause international incidences with fishing boats, states in the Pacific are working to connect their fisheries policies.  The South Pacific Tuna Treaty is currently being renegotiated. Pacific states are working with Australia, France, New Zealand and the US to stem illegal fishing through Operation RAI BALANG. The Pacific Islands Forum Fisheries Agency continues to work on new and existing issues.  The World Wildlife Foundation recently praised the efforts of Parties to the Nauru Agreement with their strengthened fisheries management measures to promote sustainable fishing.  Since several Pacific Island states – with Kiribati being a leading example – rely upon the resources caught from their Exclusive Economic Zones, a major concern has been how best to ensure revenues from primary industries are spread amongst states’ residents. While several panelists offered that question, answers as to how profits might “trickle-down” were in short supply. 

Pacific Island states are also pursuing environmental and energy policies.  Kate Brown from the Global Island Partnership gave an example of how Pacific Island states are being creative in their environmental protection policies.  In Palau, a $15.00 “Green Fee” collected upon departure is used to support the country’s natural resource conservation efforts within the Protected Areas Network.  The fee was initiated in 2009, and has collected well over 2 million US dollars.   In addition to protecting the environment, improvements in sustainable energy and dealing with the effects of a changing climate remain significant.  With assistance from others, Tokelau will soon be moving from relying solely upon fossil fuels to relying upon solar power for 90% of its energy. At the UN climate talks in Durban last year, Tokelau challenged other states to follow its lead. Durwood Zaelke of the Institute for Governance and Sustainable Development pointed to other strategies being utilized to mitigate climate change in the Pacific: black carbon is the worst polluter in the Pacific, and innovative methods are being used to capture it; the Climate and Clean Air Coalition to Reduce Short-Lived Climate Pollutants is making headway, and there are hopes it will benefit island states in the Pacific.  Very recently, the Secretariat of the Pacific Community signed grant agreements with the Government of Australia to support work in climate change adaptation and educational assessment.  As Ms. Brown reiterated, island nations around the world are looking to the examples being set in the Pacific for environmental management as well as effective multilateral collaboration. 

Pacific nations face a range of security issues from governance to international crime and disaster relief that are best tackled through regional partnerships. As Patrizia Tumbarello from the International Monetary Fund stated, the cost of running a government in the Pacific Island region is higher than in other parts of the world due in part to their small populations. A lack of investment due to transport and infrastructure issues, reliance on diesel energy, and distance from neighbors and larger markets impede economic security and stability.  The consistent linking of Pacific Island states to Australia, New Zealand and economies in Asia adds resilience to their economic and social networks.  Tackling transnational crime and human trafficking and enhancing information sharing were the goals of US Secretary of Homeland Security Janet Napolitano’s recent trips to New Zealand and Australia; in New Zealand, Secretary Napolitano signed a Joint Statement on Combating Trafficking in Persons in the Pacific Islands Region with Immigration Minister Nathan Guy, and signed a Joint Statement to Strengthen Border Security, Combat Transnational Organized Crime, and Facilitate Legitimate Trade and Travel with Customs Minister Maurice Williamson.  In addition, development aid, disease prevention and disaster management go hand in hand with economic and more traditional security issues.  Australia provides half of all global Official Development Assistance (ODA) to Papua New Guinea and Pacific island states, representing almost 25 per cent of total Australian ODA; similarly, over half of all New Zealand’s total development aid is provided to its neighbors in the Pacific.  Taken holistically, the security of the Pacific island states cannot be guaranteed on their own.  As CSIS Non-resident Fellow Eddie Walsh mentioned in his briefing, Pacific states must be part of the greater Asia-Pacific in their economic, security and political networks.

The guests in attendance at Pacific Day 2012 – like the nations they represented – had an interest or even a stake in the prosperity of the Pacific.  Diplomats, representatives of nonprofits and corporations, scholars, journalists, students and members of the public attended the festive affair focused on celebrating all things Pacific and promoting cooperation amongst neighbors.  The nation-states of the Pacific maintain unique economic, political and social structures; yet because of their small size and geographic location they understand the significance of multilateral institutions such as the Pacific Islands Forum and the need to collaborate with Western regional powers Australia, New Zealand and the United States and Asian powers like China.  In a recent statement, the Secretary General of the Pacific Islands Forum Secretariat proclaimed that “Pacific countries cannot be left isolated from regional economic integration initiatives in the Asia-Pacific region.”  Mutual advances toward sustainable fisheries, development, and economic, human and physical security, may lead to a more prosperous Asia-Pacific region.