Unlocking Access To Climate Finance For Pacific Island Countries

This departmental paper provides an in-depth overview of access to climate finance for Pacific Island Countries, evaluating successes and challenges faced by countries and proposes a way forward to unlock access to climate funds.

"Discusses the challenges and opportunities for Pacific Island governments to access adaptation funding, to respond to the adverse effects of climate change. The United Nations Framework Convention on Climate Change (UNFCCC) commits developed countries to provide climate financing to developing nations, to address climate impacts on food security, water supply, agriculture and public health. But despite recent commitments of 'fast start' climate funding from donors, Pacific Island governments face significant obstacles in accessing resources to adapt to the adverse effects of climate change. The Analysis outlines innovative approaches that could strengthen Pacific access to climate finance and improve outcomes for vulnerable communities in our region"--Publisher summary.

This book analyses the regional complexes of climate security in the Pacific. Pacific Island States and Territories (PICTs) have long been cast as the frontline of climate change and placed within the grand architecture of global climate governance. The region provides compelling new insights into the ways climate change is constructed, governed, and shaped by (and in turn shapes), regional and global climate politics. By focusing on climate security as it is constructed in the Pacific and how this concept mobilises resources and shapes the implementation of climate finance, the book provides an up-to-date account of the way regional organizations in the Pacific have contributed to the search for solutions to the problem of climate insecurity. In the context of the United Nations Climate Change Conference (COP21) in Paris in 2015, the focus of this book on regional governance offers a concise and innovative account of climate politics in the prevailing global context and one with implications for the study of climate security in other regions, particularly in the developing world.

The transition to a sustainable future in the Asia-Pacific region has global economic significance. Despite driving global growth in recent years, the region's heavy coal reliance led to significant greenhouse gas emissions. Meeting climate mitigation and adaptation needs in emerging and developing Asia requires investment of at least $1.1 trillion annually. Actual investment falls short by about $800 billion. Asia-Pacific’s environmental performance has also hampered its ability to tap into private flows from the fast-growing ESG asset class, keeping the cost of issuing sustainable debt instruments relatively high compared to other regions. This paper provides an overview of the climate finance ecosystem in countries in the Asia-Pacific region and presents strategies to mobilize climate finance for the region’s transition to a sustainable future. The paper identifies challenges, including gaps in the climate information architecture, policy conflicts, global complexities, and emphasizes the need for coordinated action involving governments, central banks, financial supervisors, the IMF, and other multilateral institutions. In particular, • Governments need to establish a well-defined climate strategy with strong institutional oversight and coordination to strengthen the framework on data, taxonomies, and disclosures. Fossil fuel subsidies should be phased out and carbon pricing schemes expanded to create fiscal space for sustainable investments. Strengthening macroeconomic management is essential to attract private capital. • Financial supervisors and central banks should coordinate across jurisdictions to promote global, interoperable disclosure standards, enhance climate risk analysis and reporting, and incorporate climate-related financial risks into prudential frameworks. Developing climate labels for sustainable investment funds and shifting the focus of ESG scores to better capture sustainability and climate impact would foster trust in the evaluations. The IMF can drive climate action by integrating discussions in surveillance activities and strengthening data and statistics—including through capacity building and peer learning—to develop common standards around climate risk measurement and analysis. The Resilience and Sustainability Trust could contribute to reducing financing gaps through its catalytic and reform supporting functions, while multilateral development banks could scale up grant financing and concessional lending, and where appropriate adopt risk-mitigating mechanisms to expand lending capacity. Cooperation among multilateral institutions is essential to align efforts and resources to achieve a balanced allocation between mitigation and adaptation lending.

This book presents papers written by scholars, practitioners, and members of social movements and government agencies pursuing research and/or climate change projects in the Pacific region. Climate change is impacting the Pacific in various ways, including numerous negative effects on the natural environment and biodiversity. As such, a better understanding of how climate change affects Pacific communities is required, in order to identify processes, methods, and tools that can help countries and the communities in the region to adapt and become more resilient. Further, the book showcases successful examples of how to cope with the social, economic, and political problems posed by climate change in the region.

This report assesses climate finance in Asia and the Pacific and analyzes how it can be harnessed by developing member countries to expand climate action and spur low-carbon, resilient growth. Designed to help governments and development partners identify and address barriers, it offers a subregional breakdown and underscores the need for equitable access to funds to help countries meet their climate targets. It assesses financing gaps, considers how to increase investment, and outlines ways to scale up climate finance so that it reaches the countries and sectors that need it most.

In the last three years, multiple global crises and the growing urgency of containing climate change have put current models of development co-operation to, perhaps, their most radical test in decades. The goal of a better world for all seems harder to reach, with new budgetary pressures, demands to provide regional and global public goods, elevated humanitarian needs, and increasingly complex political settings.

Small Island Developing States are often depicted as being among the most vulnerable of all places to the effects of climate change, and they are a cause celebre of many involved in climate science, politics and the media. Yet while small island developing states are much talked about, the production of both scientific knowledge and policies to protect the rights of these nations and their people has been remarkably slow. This book is the first to apply a critical approach to climate change science and policy processes in the South Pacific region. It shows how groups within politically and scientifically powerful countries appropriate the issue of island vulnerability in ways that do not do justice to the lives of island people. It argues that the ways in which islands and their inhabitants are represented in climate science and politics seldom leads to meaningful responses to assist them to adapt to climate change. Throughout, the authors focus on the hitherto largely ignored social impacts of climate change, and demonstrate that adaptation and mitigation policies cannot be effective without understanding the social systems and values of island societies.

Pacific Island Countries (PICs) face daunting spending needs related to achieving the UN Sustainable Development Goals (SDGs) and adapting to the effects of climate change. Boosting tax revenues will need to be an essential pillar in creating the fiscal space to meet SDG and climate-adaptation spending needs. This paper assesses the additional tax revenue that PICs could potentially collect and discusses policy options to achieve such gains. The main objectives of the paper are to (1) review the critical medium-term development spending requirements and available financing options, (2) document the main stylized facts about tax revenues in the PICs and estimate the additional tax revenue that countries could raise, (3) highlight the main bottlenecks preventing the PICs from further increasing their tax revenue collection with an emphasis on weaknesses in VAT systems, (4) draw lessons from successful emerging and developing countries that have managed to substantially and durably increased their tax revenues, and (5) propose tax policy and revenue administration reform priorities for Pacific Island Countries to boost tax revenues. The paper’s main findings are (1) The current revenue mix is skewed toward non-tax revenues, (2) PICs could collect an additional 3 percent of tax revenue in the short to medium term, (3) Many bottlenecks are preventing the PICs from boosting their tax revenue collection, and (4) The potential offered by efficient VAT systems is not fully exploited. To increase tax revenue in the Pacific Islands, the paper proposes the following reforms: (1) unwinding recent fiscal relief measures, (2) strengthening or introducing a VAT system; (3) rationalizing tax exemptions, (4) closing loopholes in the tax system, (5) reforming tax administration, and (6) introducing a medium-term revenue strategy.

This report analyses current trends of adaptation finance provided and mobilised by developed countries for developing countries. It explores potential action areas for international providers to scale up funding for climate change adaptation, including by unlocking the potential of the private sector.