Pacific Island countries have adopted a regional strategy aimed at improving access to climate finance, strengthening institutional capacity and promoting innovative funding mechanisms to help address the region's growing climate challenges.
The Pacific Regional Climate Finance Access and Mobilisation Strategy 2025-2030, endorsed by Pacific Islands Forum Economic Ministers in March 2025, seeks to help Pacific Island countries better access, manage and deploy climate finance for climate adaptation, mitigation, and loss and damage initiatives.
The strategy was developed by the Pacific Islands Forum Secretariat (PIFS) following a technical assessment of climate finance in Pacific Island countries and forms part of the implementation framework under the Pacific Roadmap for Economic Development and the 2050 Strategy for the Blue Pacific Continent.
PIFS said Pacific Island countries remain among the world's most climate-vulnerable nations but continue to face significant barriers in securing international climate finance because of limited institutional capacity, complex funding requirements and the need for stronger technical expertise in preparing funding proposals.
According to the strategy, Pacific Island countries received a total of US$3.4 billion in climate finance between 2010 and 2021, with 59 per cent allocated to adaptation projects, 31 per cent to mitigation initiatives and 10 per cent to cross-cutting programmes. More than half of the funding came from multilateral development banks, while bilateral donors and dedicated climate funds accounted for the remainder.
However, the strategy estimates the region requires around US$13.2 billion in climate finance by 2030, leaving a substantial funding gap despite increased international support.
PIFS said climate finance delivery continues to be constrained by complex application procedures, stringent eligibility requirements, limited absorptive capacity and project-based funding models that often bypass national budgeting and financial management systems.
The strategy sets out four priority areas: strengthening institutional capacity, improving access to climate finance, enhancing the management and utilisation of climate funding, and promoting innovative financing mechanisms.
Among the measures proposed are simplifying access to international climate funds, supporting more Pacific countries to secure direct accreditation with major climate finance institutions, expanding public-private partnerships and improving project management and financial oversight.
The strategy also promotes new financing approaches, including green and blue bonds, debt-for-climate swaps, carbon pricing mechanisms, climate insurance products and regional climate investment platforms to mobilise additional public and private capital for climate resilience projects.
Under the implementation roadmap, PIFS aims to help at least three Pacific Island countries secure direct accreditation to the Green Climate Fund or other international climate funds by 2029, facilitate the issuance of at least one green or blue bond, establish an operational regional climate investment platform and support the completion of at least one debt-for-climate swap by 2030.
PIFS will coordinate implementation through an expanded regional Climate Finance Working Group involving regional organisations, multilateral development banks, United Nations agencies and other climate finance partners, while ensuring climate finance remains aligned with national development plans and climate priorities across Pacific Island countries.
