The Climate Finance Unit at the Pacific Community (SPC) supports Pacific Small Island Developing States (SIDS) in accessing and managing climate finance from the Green Climate Fund (GCF), Adaptation Fund, and other funding mechanisms. SPC and the Fiji Development Bank recently co-hosted the "Pacific Development Banks Learning Exchange," focussing on integrating Gender Equality and Social Inclusion (GESI) and Environmental and Social Safeguards (ESS) into climate projects. The event brought together technical specialists to share best practices, address challenges, and enhance regional understanding of climate finance requirements. SPC aims to strengthen the capacity of SIDS for sustainable climate action through GCF readiness support.
The Pacific Community (SPC) supports Pacific Island countries in accessing global funds like the Green Climate Fund (GCF) and Adaptation Fund to address climate challenges.
Climate change poses an existential threat to Pacific Small Island Developing States (SIDS), making access to climate finance a lifeline for their communities. The Pacific Community (SPC) is at the forefront of efforts to help these nations navigate the complex landscape of global climate funds like the Green Climate Fund (GCF) and the Adaptation Fund.
The Fiji Development Bank and SPC recently co-hosted the "Pacific Development Banks Learning Exchange." This event provided a platform for Pacific countries to strengthen their expertise in integrating Gender Equity and Social Inclusion (GESI) and Environmental and Social Safeguards (ESS) into GCF-funded projects. By doing so, it ensures that climate projects are not only inclusive but also tailored to the region’s unique needs.
- Building Regional Expertise for GCF Projects
The learning exchange brought together technical specialists from Pacific Development Banks, including the Fiji Development Bank, Federated States of Micronesia Development Bank, Bank of the Cook Islands, Development Bank of Samoa, and Tonga Development Bank. The event was an opportunity to share experience, tackle common challenges and deepen knowledge of effectively integrating GESI and ESS considerations into climate finance projects.
The CEO of the Fiji Development Bank, Filimone Waqabaca, emphasised the critical importance of environmental and social management in advancing sustainable climate finance initiatives:
"Environmental and social management will not only allow us to provide bankable projects to the Green Climate Fund, but also ensure we are funding the sustainable development of people and our economy,” he stated.
- Promoting Gender Equality and Inclusion (GESI) in Climate Finance
The Gender and Social Inclusion dialogue highlighted the complexities of creating Pacific-led and Pacific-centred gender policies. Norleen Oliver, Gender Specialist at the Federated States of Micronesia Development Bank, shared her experiences in addressing gender inequalities across the four states of FSM:
“In one part of the country, women cannot just go and apply for loan. Most likely, they would have to go through their male relatives... this has some implications on how we deal with our customers.”
The systemic challenges persist in some Pacific regions, where cultural norms restrict women's autonomy in financial decision-making, often requiring them to go through male relatives to apply for loans. This limits their access to financial resources and opportunities, hindering economic empowerment.
She underscored the importance for organisations such as the Pacific Development Banks to design policies and services that account for these gendered dynamics, ensuring women can independently access loans and financial products. She said,
“We wanted to see the commonalities that we share across the four states, and we base our gender policy on the notion that we want everybody to access the products and services that we have.”
- Environmental and Social Safeguards in Climate Projects.
Elenoa Mila Seniloli, ESS and GESI Specialist of the Fiji Development Bank, discussed the inclusion of Environmental and Social Safeguards in climate projects. She highlighted the importance of managing environmental and social impacts and meaningfully engaging women in climate action for big projects such as the GCF-funded Fiji Agrophotovoltaic Project in Ovalau.
“Environmental management has been a key component of lending, supported by policies for large projects [...] developed further through the GCF accreditation system, FDB incorporated a Gender Action Plan to ensure women’s inclusion and accountability in climate action, reflecting a strategic shift towards gender-responsive banking and lending“
- Navigating GCF accreditation requirements.
Teruautu Ringi, Relationship Manager at the Bank of the Cook Islands , emphasised the challenges and strategies involved in fulfilling the difficulty of balancing various systems and criteria while working to streamline and improve existing systems to align with GCF standards.
"Our key challenge lies in balancing different systems and criteria while focusing on improving and streamlining existing systems, particularly to align with GCF accreditation requirements.”.
He also noted that GCF accreditation is just one part of the development bank's broader mission, calling attention to the importance of aligning financial systems with international climate goals and ensuring sustainability for the long-term success of climate-related projects.
"Beyond GCF accreditation, we seek to support other stakeholders and align systems to ensure projects are robust and sustainable for long-term impact," Ringi explained.
- Strengthening Partnerships and Capacity Building
SPC Climate Finance Coordinator, Dirk Snyman, highlighted SPC’s role in fostering partnerships and enhancing the region’s capacity through GCF readiness support.
"SPC has been working with everyone here in the room—your institutions, your countries, or both—to develop relationships and help each other improve with support from GCF readiness funding,” he said.
As an outcome of this initiative, SPC is developing a Lessons Learnt Paper that captures the insights, opportunities, and challenges faced by Pacific Development Banks in accessing climate finance, particularly through the lens of social and environmental management.
It incorporates the Independent Evaluation Unit’s Synthesis Paper on Access in the GCF and will inform future strategies for improving the region's engagement with the GCF and to support the broader goal of fostering sustainable climate action across Pacific SIDS
Through initiatives like the Pacific Development Banks Learning Exchange, the Pacific region is empowered to navigate the complexities of climate finance while ensuring inclusivity and sustainability. By fostering partnerships, strengthening capacity, and aligning systems with international standards, SPC and its members continue to promote sustainable climate action tailored to the unique needs of Pacific SIDS.
Contact
Dirk Snyman, Coordinator - Climate Finance, Climate Change and Sustainability (CCES), Pacific Community | [email protected].
