Page 14 - IB November 2023

Climate Change

scenario for the Pacific. That’s the argument for us, that the world most vulnerable to climate change, according to
when we talk about development, you can’t separate climate the Vulnerability Index.
change from that conversation. But for climate funds, they According to Samuwai, “that is a criteria that most of these
will say ‘no, where is the climate change aspect here?’ They funds don’t look at. So, if Fiji and Cambodia submit [project
tend to separate those two.” proposals], the first thing they’ll consider is the quality of
Which introduces a further complication in the project the proposal. But the reality is of who is the most vulnerable.
proposal and development process—the concept of That’s another narrative.”
additionality, where only the climate-related component of Dated September 2023, a report of a high-level UN panel
a development project such as a new bridge is funded by on the development of a multidimensional vulnerability index
climate fund agencies, while the rest of the project is funded highlights the contradiction—that the SIDS, despite being
through other means. declared by the international community as being among
“You can say that in 20 years time, you will need to expand the most vulnerable nations worldwide, “often lack access
this by another meter on both sides because of the way things to sufficient development resources, including concessional
are changing. And then you can argue that the development finance or adequate mechanisms for debt relief,” according to
cost is say 80%. The climate additionality is that additional the report.
20% to increase the bridge on one side by two meters, and the The issue is the heavy reliance on Gross National Income
other by two meters,” says Samuwai. per capita (GNI pc) as a key criteria for finance eligibility or
evaluating a country’s requirements for development support.
Questions “With few exceptions, access to concessional financing
The United Kingdom, which sits on the Board of the GCF, co- windows depends on meeting lower income thresholds (GNI
funded a report published in July 2023 that asks the question, pc). This means that vulnerable countries often lack access
‘What GCF do we want for the Pacific?’ to affordable development support such as concessional
The report came about after the UK began asking whether assistance to help them meet their sustainable development
it was worth pouring their climate fund contributions into the goals while coping with, and adapting to, their structural
GCF, or whether they should provide those funds directly to vulnerabilities.
island countries as development assistance. “On the frontline of multiple world crises—including climate
It says that although some changes have been made to change and debt—the most vulnerable countries face chronic
simplify approval processes, these “are not sufficient and structural challenges that are becoming more interconnected
responsive to the special circumstances of SIDS, including and intense over time. They rely on external financing to help
PICs. prepare and recover from these crises. For some, such as
“Furthermore, climate change finances still appear to SIDS, response to disasters is more expensive for SIDS. Debt is
be disconnected from the priorities of vulnerable local more expensive to service. Infrastructure is more expensive.
communities and people most impacted by climate change. Overseas Development Assistance from partner countries
“The stringent proposal process results in the fact that doesn’t stretch as far.
many countries with the highest climate vulnerability but “Most SIDS are not the poorest nations: but their costs are
weak government institutions and fragile state-bureaucracies so much greater—and accessing financing is more difficult.
have missed out and have not been able to access project Their relative income makes them ineligible for the cheaper
funding,” it says. finance set aside for lowest income countries. And how that
“Current GCF data collection and analysis of access to the external financing is apportioned by international financial
portfolio of funding shows that SIDS currently make up only institutions like the World Bank does not take into account
12% of the GCF portfolio. their vulnerability to these very crises.
“Without additional grant-based access to climate finance, “These small island nations have repeatedly said that
delivered at the necessary speed and scale, it is going to be traditional measures of development insufficiently capture
extremely challenging to meet the adaptation and resilience their vulnerabilities. For example, GNI per capita measures
needs of the region.” the income of a country but that does not tell us how much
it costs to handle major threats like catastrophic sudden
Vulnerability weather events or the cost of servicing old debts.
Pacific Island experts are of the view that the key question The report calls GNI, as the primary measurement for the
of the vulnerability of Pacific Island states to the Asia-Pacific allocation of concessional financing, “the wrong tool for the
polycrisis, including the threat of climate change, is sorely job.”
missing from the climate finance discussion. “It is time the world listened to the voices of small island
“The way they assess a project is still based on the quality states,” it concludes. Those voices, such as experts like
of our argument, quality of our data, quality of the narrative, Samuwai and Moresi, and the leaders of Pacific Island nations,
how you package your project proposal. The Pacific is already will again be loud and clear at the COP28 climate negotiations
disadvantaged if that’s the criteria of accessing funding,” says this month. Will they be heard?
Samuwai.
Eight Pacific Island countries are in the top 15 countries in richard@islandsbusiness.com

14 Islands Business, November 2023