The European Union (EU) has announced an additional EUR 1.5 million (approximately FJD 4 million) in grant funding to support Fiji and fifteen other Pacific Island countries (PICs) in building green climate resilience into their Public Finance Management (PFM) systems. The announcement was made by European Commissioner for International Partnerships, Jozef Síkela, at the first-ever EU-Pacific Business Forum in Nadi. This funding brings the EU’s total contribution to the region to EUR 6.5 million (around FJD 17 million).
The Pacific Financial Technical Assistance Centre (PFTAC), through its Phase VI Programme, will implement the funds. The programme aims to establish robust PFM systems that can manage climate-related risks effectively. Commissioner Síkela highlighted the critical role that Pacific nations play in global climate resilience, emphasizing that integrating climate considerations into planning and budgeting is essential for long-term economic stability in the region.
With the additional funding, PFTAC will strengthen the capacity of PICs to incorporate climate considerations into their PFM systems. This will involve technical support, roadmap development, and targeted workshops designed to help governments plan, budget, and respond more effectively to climate challenges. The initiative aims to make a tangible contribution to the region’s climate resilience and sustainable development.
Key areas of support include raising awareness of green budgeting and climate-responsive public investment management, providing hands-on assistance for green PFM reform plans, and enhancing the capacity of PICs to integrate climate considerations into budget processes and public investment strategies.
The Phase VI regional programme will benefit sixteen Pacific Island countries: Fiji, Kiribati, Nauru, Palau, Papua New Guinea, the Republic of the Marshall Islands, Samoa, Solomon Islands, Timor-Leste, Tonga, Tuvalu, Vanuatu, Cook Islands, Niue, Federated States of Micronesia, and Tokelau.
This initiative is part of the EU’s broader Global Gateway strategy, which seeks to reduce global investment disparities and promote smart, clean, and secure connections across digital, energy, and transport sectors. Global Gateway uses a Team Europe approach, combining the efforts of the EU, EU Member States, and European development finance institutions, to mobilize up to €300 billion in public and private investments from 2021 to 2027. The strategy aims to create essential links, strengthen health, education, and research systems, and close the global investment gap.
