Palau is drawing on Vanuatu’s experience to improve how climate projects are selected, financed and managed as the country begins moving its national priorities towards implementation.
A six-member delegation from Palau visited Vanuatu from 4–7 August 2026 for a peer learning exchange focused on the institutions and decision-making processes behind effective climate finance.
Palau has completed its first Climate Finance Country Programme, identifying priority areas for climate investment from the Green Climate Fund, Adaptation Fund and other donors. The country is now developing the systems needed to turn those priorities into viable projects, match them with suitable sources of finance and oversee their delivery.
Vanuatu offers relevant experience developed within a Pacific Island context. It has established mechanisms for coordinating climate finance across government, engaging with civil society and other stakeholders, reviewing proposed projects and connecting investment decisions with national priorities.
The Palau–Vanuatu Cross-Learning Exchange on Climate Finance Coordination and Systems Strengthening allowed the delegation to examine these processes directly and identify approaches that could be adapted to Palau’s institutions and national circumstances.
The exchange began with a visit to the Ministry of Climate Change and a meeting with the Honourable Ralph Regenvanu, Minister for Climate Change Adaptation, Energy, Environment, Meteorology, Geo-Hazards and Disaster Management.
The meeting provided an opportunity to discuss the importance of national leadership in directing climate finance towards the sectors, communities and infrastructure facing the greatest risks.
Mr David Gibson, Director General of Vanuatu’s Ministry of Climate Change, said climate finance requires coordinated decisions across government and access to information from multiple sectors.
“Climate change affects energy, water, agriculture, infrastructure, health and livelihoods. Strong coordination allows countries to bring this information together; identify the most urgent investments and ensure projects remain connected to national priorities as they move towards financing and implementation.”
During the week, participants from both countries examined the roles of government ministries, civil society, financial institutions and focal points for multilateral climate funds.
In particular, the delegation from Palau explored how Vanuatu identifies, assesses and prioritises potential climate investments, as well as their systems used to oversee grants, monitor implementation, report results and retain knowledge from completed projects.
These processes are important because a national climate priority does not automatically become a finance-ready project. Countries must define the climate risk being addressed, assemble technical and economic evidence, establish institutional responsibilities and show how the proposed investment will produce lasting results.
A central part of the exchange was the Palau delegation’s participation as observers at a meeting of Vanuatu’s National Advisory Board on Climate Change and Disaster Risk Reduction.
The National Advisory Board (NAB) brings institutions and stakeholders from multiple sectors together to coordinate Vanuatu’s response to climate change and disaster risk. It provides a national forum for reviewing projects, policies and plans before they move forward.
During the meeting, the NAB examined proposals addressing rural electrification and locally led adaptation, as well as Vanuatu’s National Policy on Climate Change and Disaster-Induced Displacement and Community-Based Adaptation Plans.
For the Palauan delegation, the meeting provided an inside view of how Vanuatu assesses proposals, identifies gaps and connects technical information with national investment decisions.
Ms Charlene Mersai, Integrated Climate and Development Programs Manager with Palau’s Office of Climate Change, said observing the process allowed the delegation to see how different parts of the climate finance system work together.
“Palau has identified its climate investment priorities. Our next step is to develop a clear and nationally owned process for moving those priorities into well-designed projects. Vanuatu’s experience gives us practical lessons on coordination, project review and investment oversight that we can assess and adapt to Palau’s context.”
Coinciding with the Learning Exchange, the Government of Vanuatu also launched four national resources: the Climate Finance Road Map, Vanuatu Climate Finance Country Programme, Cost-Benefit Analysis Report and upgraded NAB portal.
The Climate Finance Road Map guides how Vanuatu mobilises and manages finance, while the Country Programme organises priority investments into a national pipeline. The Cost-Benefit Analysis Report supports evidence-based investment decisions, and the upgraded NAB portal improves access to climate and disaster-risk information.
The delegation also met officials across Vanuatu’s climate, energy, environment, meteorology, geohazards and disaster-management agencies to examine how institutions share information, involve stakeholders and coordinate projects from planning through to reporting.
The six-member Palauan delegation brought together expertise in climate policy, national planning, environmental management, conservation finance and development finance. Participants represented government institutions, focal points for multilateral climate funds and the Palau Protected Areas Network Fund.
This combination of expertise reflects the range of institutions involved in climate finance. Government establishes national priorities and coordinates access to international funds, while financial institutions, civil society organisations and project managers contribute to project design, grant management and delivery.
Ms Esline Garaebiti, SPC Deputy Director, Climate Change and Sustainability, said the exchange allowed both countries to examine how climate finance systems operate under Pacific conditions.
“Palau is not seeking to reproduce Vanuatu’s system. It is examining what has worked, why it has worked and which lessons are relevant to its own institutions and priorities. Palau’s questions and experience also add to Vanuatu’s learning and to the region’s understanding of effective climate finance coordination.”
The exchange was facilitated by the SPC’s Climate Finance Unit and co-organised with Vanuatu’s NAB Secretariat. The findings of the exchange will inform Palau’s implementation of its first Country Programme and its continuing work to strengthen national climate finance coordination.
Regional learning on climate finance will continue from 25–27 August 2026, when Pacific countries meet in Pohnpei for the Pacific Climate Finance Readiness Learning Exchange, hosted by the Government of the Federated States of Micronesia and SPC.
While the Vanuatu exchange examined how priorities are assessed and advanced towards finance, the Pohnpei meeting will focus on what happens after a project is approved. Countries, accredited entities and project management staff will compare experience in establishing project teams, coordinating implementation, meeting financial and reporting requirements and responding to delivery challenges.
Together, these exchanges follow two critical stages of climate finance: developing investments that reflect national priorities and ensuring approved projects deliver the intended results.
As Pacific countries prepare for Pre-COP31 in Fiji and COP31 in Türkiye, this practical country-to-country peer learning will add national experience to the region’s call for climate finance that is more accessible, responsive and capable of reaching Pacific communities.
