Fiji has secured a second “Readiness and Preparatory Support Programme” (Readiness Programme) Funding support project from the Green Climate Fund (GCF). The project, “Enhancing Direct Access to Climate Finance in Fiji-Phase 2”, focuses on supporting the Ministry of Economy, the Fiji Development Bank, Line Ministries, the private sector and non-government entities to access climate finance. The project will be implemented by the Ministry of Economy through the Climate Change and International Cooperation Division (CCICD) with technical support from the Global Green Growth Institute (GGGI) as the implementing agency.
The GCF is one of the largest multilateral sources of climate finance in the world with a total funding capacity of over US $10.3 billion. It helps developing countries adapt to the impacts of climate change and reduce their greenhouse gas emissions in line with national priorities. Countries that are party to the United Nations Framework Convention on Climate Change have National Designated Authorities (NDA) who are the focal point for the GCF. Countries can access GCF funding through Direct Access Entities (DAE) that are accredited to the GCF after being nominated by the NDA.
Readiness funding helps country stakeholders to be successful and impactful in their engagement with the GCF. It builds country ownership and clarity regarding climate priorities that require financial support beyond national budgetary allocations. Ultimately, Readiness projects aim to assist countries to access GCF finance and to maximise the benefits from the implementation of priority climate actions.
Fiji’s Readiness funding will assist the Ministry of Economy, in its capacity as the NDA, to strengthen and operationalise national mechanisms to coordinate and manage climate finance through set guidelines and operating procedures as well as support the Fiji Climate Change and NDA Portal as the information hub on climate change in Fiji. The project will also assist in institutional and capacity building for the Fiji Development Bank (FDB) in its role as the DAE and support FDB to submit new projects to the GCF, following the successful approval of its first GCF project, the Fiji Agro-photovoltaic project, on the island of Ovalau. The project will also provide support to the Ministry of Economy to also become a DAE, enabling greater mobilisation of climate finance through the GCF and access to a wider variety of financial instruments and potential co-financing.
“The GCF is one of the key mechanisms of the UNFCCC that provides us access to climate finance in addressing our climate change priorities. So far, around USD 50.6 million grant financing has been secured from the GCF for projects in Fiji. With the approval of the second readiness funding as well as Fiji’s presence on the GCF board, we are actively engaging with the Secretariat in mobilising large scale climate finance for Fiji in particular through our recently launched National Climate Finance Strategy. In addition, we are also leveraging our voice for more grant-based financing, ensuring that financing for adaptation does not add further to the country’s debt levels, and that co-financing constraints of Small Island Developing States are recognised by the GCF. We are also calling for an enhancement for private sector investment, and advocating for a GCF regional presence in the Pacific”, said the Acting Head of Climate Change and International Cooperation Division, Mr. Kushaal Raj.
GGGI, an international organisation dedicated to green growth with an office in Suva, has been instrumental in guiding the Ministry of Economy to secure the Readiness funding. GGGI’s priority is to support national efforts to translate climate mitigation commitments and climate adaptation needs into concrete climate action. Creating an enabling environment to mobilize climate finance is a key part of this and that is why GGGI is very pleased to partner with the Ministry of Economy to implement this Readiness project, which will create more opportunities for direct access to international climate finance for Fiji”, said GGGI Pacific Director, Ms. Katerina Syngellakis.
The Readiness programme will run for 24 months and involve multiple consultations with stakeholders from the public sector, private sector, NGOs, civil society and development partners. Fiji will be seeking more readiness support from the GCF in the future to further develop its project pipeline and secure approval of project financing from the GCF.