A single extreme weather event can wipe out progress for Pacific Islands, while much of the financial cost of loss and recovery is borne by the Private Sector.

“We know that one single event can undo decades of progress – for instance Cyclone Evan in Samoa in 2012 was estimated to have cost 30% of GDP,” the Pacific Islands Forum Secretariat Secretary General, Meg Taylor said in Tonga this week.

Dame Meg told the Green Climate Fund Structured Dialogue that, "involving the private sector to help shape climate and disaster resilient development is crucial."

Damage

Between 1950 and 2014 in the Pacific region, extreme weather events have affected 9.2 million people, with 9,811 reported deaths and damage bills totaling US$3.2 billion.

In 2015, damages from Cyclone Pam to Vanuatu cost around 64% of GDP, and in 2016 damages from Cyclone Winston in Fiji are estimated to be close to FJ$2 billion.

“Post event analysis indicates that much of these financial costs are borne by the private sector,” Dame Meg said.

Resilience building

She said that while there is strong interest within the private sector to act they remain marginally involved, “both in terms of their contribution to coordinated disaster response and to community resilience building activities”.

Globally, the Paris Agreement goal is to invest US$100 billion annually to support climate change action by 2020, although the World Economic Forum estimates that around US$5.7 trillion will need to be invested in green infrastructure annually by 2020.

In the Pacific, the Asian Development Bank estimates costs could be between US$447 million and US$775 million annually until 2050.

Dame Meg said the Pacific region needs to be ambitious and daring when “building and developing partnerships between the private, public and other non-states actors”.

Shortfall

“When you consider the current US$100 billion annual goal in the Paris Agreement, that is usually referenced it is only a small piece of the US$5.7 trillion puzzle.”

“Both public and private levels of funding need sustained growth to ensure that we get on a pathway to meeting investment needs in 2020 and beyond,” she said.

Some Pacific countries have great examples of involving the local private sector. In Palau, the National Development Bank of Palau works with the Office of Energy Administration and the Palau Housing Authority to provide loan subsidies for renewable energy and energy efficient homes.

In Fiji, The Fiji Business Disaster Resilience Council strengthens the capacity of businesses and communities to prepare for and respond to disasters.

“Clearly private sector involvement is vital to ensuring climate finance reaches the necessary levels.”

But it isn’t always about accessing finance directly said Meg Taylor.

“Noting the growing influx of financial resources to the region for climate change and disasters, it is also vital to build capacity using these resources and to also utilize the potential of the local private sector as providers of goods and services to ensure the projects are successfully implemented.”

In Tonga, although the government is pushing for sustainable tourism development, more is needed to involve the private sector. 

 The Green Climate Fund Structured Dialogue with the Pacific was held at the Tanoa Hotel, Nuku'alofa, from July 18-21.