Pacific energy transition needs bigger, faster financing Climate change

Pacific Island countries need larger, faster and more accessible financing to turn am­bitious renewable energy targets into bankable projects according to Minister for Public Works, Meteor­ological Services and Transport Ro Filipe Tuisawau.

Speaking at the Ministerial Dia­logue: Unlocking Energy Transi­tion Investments and Finance in Pacific SIDS during the Pre-COP31 programme yesterday, Ro Filipe said implementation was the re­gion's biggest challenge.

"For Fiji, energy transition is cen­tral to both our climate ambitions and our development objectives," he said.

Fiji's NDC 3.0 targets a 36 per cent reduction in energy-sector emis­sions below business-as-usual lev­els by 2035, while the Government is pursuing close to 100 per cent re­newable grid-connected electricity by the same year.

The transition also covers road transport, domestic maritime transport and aviation.

Ro Filipe said Fiji's National En­ergy Policy 2023-2030 provides the framework for expanding renew­able energy, improving energy ef­ficiency and access, strengthening energy security and advancing low carbon transport.

He said Fiji had secured a US$1.2 million (F$2.7m) World Bank pro­ject preparation grant for the Fiji Energy Transformation Project.

Strengthening legislation

The project will support screening and pre-feasibility assessments for selected solar sites, assess upgrades to ageing hydropower assets and strengthen legislation to encourage greater private-sector participation in electricity.

Ro Filipe said strong project prep­aration, enabling regulations and affordable financing were critical to moving projects from concept to implementation.

"Across the Pacific region, Pacific small island developing states pos­sess considerable renewable energy resources, clear national plans and ambitious climate and energy tar­gets," he said.

"The challenge, therefore, is not a lack of ambition but closing the gap between ambition and implementa­tion."

He identified limited project prep­aration capacity, high transaction costs, infrastructure constraints and difficulties accessing afford­able, long-term finance as key bar­riers.

Closing the gap

Department of Climate Change, Energy, the Environment and Wa­ter Secretary Mike Kaiser said fi­nancing and investment would be central to closing that gap.

A A$7.29 million (F$11.42m) Pa­cific Renewable Energy Transition and Readiness package under the Australia-Pacific Partnership for Energy Transition.

The initiative will support a net­work of Pacific engineers and energy modellers to develop investment­ready renewable energy pathways.

Mr Kaiser also announced the launch of a Climate Finance Access Plan aimed at simplifying financing procedures, scaling concept-stage funding and encouraging private investment.

He said successful energy invest­ments must also strengthen data, modelling, planning, institutions and local skills.

"Without adequate financing and investment, the energy transition will not be possible," Mr Kaiser said.

He said Pacific countries must strengthen regional cooperation by combining demand, reducing costs and creating larger investment op­portunities.

He said financing must be "acces­sible, affordable, fit for purpose, re­sponsive and timely".

"This is the moment for action," Mr Kaiser said.

"The technology is available, the ambition is clear, and the financing is achievable. Now, we must rise to the occasion."