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The United Nations Development Programme (UNDP) in partnership with the Pacific Islands Forum (PIF) and the United Kingdom Foreign, Commonwealth, and Development Office (FCDO) has released a discussion paper that highlights some of the issues on climate finance effectiveness in the Pacific region. The paper explores approaches that have been used to access and deliver climate finance in the Pacific region over the past decade, the main issues affecting the effective use of these finances, and the priority areas requiring reform.

Titled ‘Climate Finance Effectiveness in the Pacific: Are we on the right track?’ the overarching aim of the paper is to identify common reform priorities and prompt further dialogue on ways to improve the effectiveness of climate finance.

The discussion paper emphasizes that despite significant climate finance being raised, climate change is still having profound effects on the achievement of development priorities in the Pacific. It is not clear if simply filling in the finance gap will suffice. Furthermore, climate finance appears to be disconnected from the priorities of the people most impacted by climate change. Quoted in the paper, Ms. Raijeli Nicola, Regional Director for Oxfam in the Pacific says there is a disconnect from the policy framework and whether it gets to the right place. 

The paper argues that the requirements for access and accreditation of climate financing in the region have been a distraction to achieving better quality results. In the paper, Honourable Mr. Seve Paeniu, Tuvalu Minister for Finance and Chair of the Pacific Forum Economic Ministerial Meeting highlights, “we faced key challenges accessing the Green Climate Fund financing facility – it was a lengthy process, negotiation took two years, and there has been already a number of years of cumbersome, extensive and multilayered processes”.

The discussion paper calls for a shift in approach, towards an optimal climate financing trajectory – a balance between accessing higher levels of financing and focusing on higher levels of impact. This can be achieved through a development-focused approach, as emphasized by the Pacific Islands Forum Secretary-General, Mr. Henry Puna. “Climate change should be thought of as a development issue. All policies, public finance management, and sector strategies need to be looked at through this lens”, said Secretary-General Mr. Puna.

The paper informed the recent regional Talanoa event of the same name, held on 9 September 2021 and attended by participants from the Pacific and beyond representing key stakeholders. Speaking at the regional event, Secretary-General, Mr. Puna agreed that more needs to be done on the issue of climate finance effectiveness. He said, “financing mechanisms can be better adapted to the Pacific context by allowing more scope for risk-taking, innovation and a diverse range of financial instruments”.

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UNDP, PIF and UK Government call for increased effectiveness of climate finance in the Pacific