The Pacific region is home to fourteen Small Island Developing States (SIDS) connected across 30 million square kilometers of ocean, equivalent to 15 percent of the Earth’s surface. The islands are highly diverse, each unique in its land, geography and culture. Populations on the islands are especially varied; while the region is home to over 10 million people, some countries are far bigger than others, for example, Papua New Guinea has 8 million people, whereas the tiny island nations of Tuvalu and Nauru only have respectively 13,600 and 11,000 people.

Thanks to tropical climates, sandy beaches, and vibrant cultures, Pacific SIDS are benefiting from a burgeoning tourism industry. Economies are also benefitting from the growing service sector. At the same time, however, sustainably managing and consuming natural resources – for example, minerals, fisheries, and forestry, which are also the regions’ primary export industries – will foster economic growth.

Although they emit a very small amount of greenhouse gases (GHGs), Pacific SIDS are some of the countries hardest hit by  the impacts of climate change. They are not only losing biodiversity and ecosystem services, but rising sea levels and more frequent severe weather events threaten communities’ survival. With communities, agricultural lands, and infrastructure concentrated in low-lying coastal areas, people are understandably concerned about impacts on public health, food security, livelihoods, and cultural heritage.

Despite these challenges, Pacific SIDS have shown leadership in combating climate change and encouraging world leaders to accelerate climate action and increase availability of technical and financial support for adaptation efforts. Since the Paris Agreement in 2015, Pacific SIDS have led by example, with their 2030 Agenda to achieve the Sustainable Development Goals (SDGs) and driving the SIDS Accelerated Modalities of Action (SAMOA Pathway). Fiji's Presidency of the 23^rd Conference of the Parties (COP) under the UN Framework Convention on Climate Change  (UNFCCC) in Bonn, Germany elevated the SIDS agenda even further by putting it on the international stage.

During COP23, the Regional Pacific NDC Hub was announced as a way to support Pacific countries to realize their Nationally Determined Contributions (NDCs).  The Hub will provide valuable expertise so that countries can develop mitigation and adaptation solutions to meet their NDC targets. As a collaborative effort between Pacific SIDS, the Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ), the Global Green Growth Institute (GGGI), the Pacific Community (SPC), the Secretariat for the Pacific Regional Environment Programme (SPREP), and the NDC Global Partnership, the Hub is funded by the United Kingdom, New Zealand, Australia, and Germany.

In 2018, Pacific leaders also endorsed the Boe Declaration on Regional Security, emphasizing the urgency and serious nature of climate change. The Marshall Islands, as the current Chair of the Climate Vulnerable Forum (CVF), became the first country to submit its 2^nd Nationally Determined Contribution (NDC) before the 24^th COP in Katowice, Poland. Their NDC committed to more binding targets for deeper emissions cuts, signaling for other parties to follow suit by 2020. At the same time, both Fiji and the Marshall Islands submitted Long-Term Low Emission Development Strategies to the UNFCCC laying out their plans to reach zero emissions by 2050.

While Pacific SIDS have shown strong leadership on climate change, a lack of financial resources has affected their ability to respond to and reduce their climate risks. They also face significant financial burdens, as well as loss of GDP, from extreme weather conditions, which can require borrowing funds to cover adaptation and recovery efforts. For instance, a sea-level rise of 1.7 meters could cost up to 15 percent of the region’s total  gross domestic product (GDP) from lost revenues in primary production and important industries like tourism, as well as reconstruction costs. Climate related events also have considerable costs; in 2016, Cyclone Winston alone caused 30% loss in GDP for Fiji.

Access to reliable, clean, and affordable energy is also a widespread issue across Pacific SIDS. Energy access is critical in achieving sustainable development and green growth. Without it, individuals and communities find it harder to participate in activities that foster socio-economic development and increase their living standards. Cyclones and storm-induced floods have compounded energy problems by limiting energy network expansion in many ways. For example, extreme weather events often result in funding for electrification being diverted to recovery efforts, damage to transmission and distribution networks, and disruption to power plants and fuel deliveries to islands.

In 2014, the overall electrification rate across the Pacific reached only 36.3 percent. Today, the rural electrification rate rests at 43.6 percent. However, these rates are skewed significantly by a large unelectrified population in Papua New Guinea. Rural communities without electricity have little choice but to consume fossil fuels and traditional energy supplies, like fuelwood. The Federated States of Micronesia, Kiribati, Papua New Guinea, and Solomon Islands have recorded declines in their urban electrification rates because of growing populations and rapid urbanization. Generally, the electricity access gap between urban and rural areas has remained the same.  Progress is being made in countries like Fiji, Marshall Islands, Samoa, Tonga and Cook Islands, which have advanced towards achieving near-universal, or, in some cases universal, electricity access.

Imported fuels are still the most common commercial energy source in the region, particularly for the maritime and land transport sectors.  Oil imports take up as much as a quarter of many Pacific SIDS GDPs.  The high cost of imported fuels, the long supply chains to reach islands, and outdated and inefficient power infrastructure drive countries to impose either high electricity tariffs or use public funds for expensive subsidies to the consumer to keep electricity affordable.

Vanuatu is a SIDS home to 276,000 people with over 82 islands and diverse ecosystems ranging from flourishing marine habitats to valuable sandalwood forests. Tourism is a key industry in Vanuatu – in 2015 it made up nearly 79 percent of exports – alongside agriculture, fisheries, and financial services.

Although economic growth took a hit in 2015 after Cyclone Pam caused widespread destruction, annual GDP growth has returned to above the regional average, reaching 4.5 percent in 2017.

After being classified as a Least Developed Country (LDC) in 1985, Vanuatu is likely to move out of this group in December 2020.  Under the National Development Plan 2016–2030, Vanuatu aims to become a stable, sustainable, and prosperous nation by 2030.

While only contributing a very minor fraction of global emissions – less than 0.0016 percent – Vanuatu is leading climate change action. After signing the Paris Agreement in April 2016, the country has developed an NDC and National Energy Road Map (NERM) aiming  to reach 100 percent RE by 2030.

People living in urban areas – one-third of all people, many living in the capital, Port Vila, and the city, Luganville – benefit most from economic growth. The remaining two-thirds of people who live in rural areas contribute only 10 percent to GDP and largely rely on subsistence agriculture. 

These challenges in rural development are made worse by Vanuatu’s vulnerability to volcanic eruptions, drought, landslides, and earthquakes. The country already experiences a six-month cyclone season and tropical cyclones are expected to become increasingly severe with climate change. Globally, Vanuatu holds the unenviable position of being ranked the worst affected country by climate change.

With no fossil fuel resources, Vanuatu, like other Pacific SIDS, relies on imported fuel, which can be costly and unreliable.  Businesses face high energy costs, even in urban areas. Even compared to other Pacific SIDS, Vanuatu has low electrification rates, particularly in rural areas. In 2016, around 54 percent of rural households did not have electrical energy access, much higher than 8.6 percent of urban households. Households outside of urban areas often rely on small diesel generators operated by communities or government stations. At the same time, some tourist resorts have diesel-powered mini-grids.

This is a central challenge for Vanuatu: clean, reliable, affordable, and accessible energy is central to Vanuatu’s inclusive green economic growth. The country has an abundance of RE resources including hydropower, geothermal, coconut oil, solar, and wind, which can be harnessed to support this green growth. To help achieve these goals, Vanuatu has developed the NERM to make use of these RE sources. After being updated in 2016, the NERM lays the path for Vanuatu to achieve its energy goals towards 2030 and improve the lives of everyone.

In 2015, RE made up nearly 30 percent of energy generation in Vanuatu and over 36 percent of energy consumption. In three years, reliance on diesel dropped over 20 percent. While Vanuatu may not meet its planned goal of 65 percent RE by 2020, the country is moving in the right direction. In addition, the government is focused on developing energy efficiency (EE) solutions to lower costs.

Papua New Guinea (PNG) is the largest SIDS in the Pacific taking up the Eastern side of the world’s second largest island and some 600 small islands. PNG is home to 8.25 million people that make up nearly one thousand distinct cultural groups speaking around 839 Indigenous languages. With diverse and rich ecosystems, the country hosts a remarkable seven percent of the Earth’s biodiversity.

Compared to other Pacific SIDS, PNG has significant economic opportunities from minerals and natural resources. Almost two-thirds of its income are from copper, gold, oil, and natural gas. In 2014, the construction of a USD19 billion liquefied natural gas (LNG) project was the single biggest investment in the nation’s history.

However, these natural resources have not resulted in widespread development: 85 percent of the population live in rural areas and rely on subsistence agriculture for their livelihoods, and economic growth has varied widely from year to year, averaging less than 3 percent annually since independence in 1975.

Despite these challenges, PNG has embraced a shift towards inclusive economic growth through sustainable energy and is moving away from a reliance on fossil fuels.

In 2009, PNG released its Vision 2050, outlining the country’s ambition to be ranked among the top 50 countries on the UN Human Development Index (HDI) by 2050. The path to achieve this vision is laid out in PNG's Development Strategic Plan (DSP) 2010–2030 and the National Strategy for Responsible Sustainable Development (StaRS). Through these plans for inclusive green growth, PNG aims to become a middle-income nation by 2030.

The DSP focuses on providing reliable, affordable, and clean energy sources to over 70 percent of households and all businesses by 2030. In 2016,  nearly 23 percent  of the population had access to electricity,  including 72.7 percent of urban households and just 15.5 percent of rural households.

With several separate grids, the electricity network across PNG has limited reach. Due to unreliable energy supply, people often turn to expensive and inefficient options in urban areas. Large industrial users, particularly mining sites, also operate their own energy systems.

As of 2013, PNG’s energy generation included 39.7 percent hydropower, 37.4 percent diesel, 14.1 percent gas, and 9.1 percent geothermal. Most of the hydropower facilities are outdated and in varying states of disrepair. The country could meet all of its energy needs through geothermal, but only a small fraction of this potential has been explored. In addition, the use of solar energy has spread gradually throughout the country, but mainly only for lighting.

To overcome these challenges and make the most of PNG’s RE resources, the government is collaborating with international partners. For example, ADB has funded three electricity projects and six technical assistance programs, with current projects worth  USD240 million. PNG also has proposed investments of USD493 million, which aim to boost energy access in urban and rural areas.

The World Bank has also supported the National Electrification Roll-Out Plan (NEROP), as well as identifying RE resources in the country. This builds on the GIZ Integrated Water and Energy Project, which is installing solar plants in village clinics , to ensure that vaccines are stored safely and ultimately improve health care for people in rural areas.

In addition, GGGI is working closely with PNG's Climate Change and Development Authority (CCDA) to develop a national green growth program and enhance access to international climate finance. To support this approach, GGGI is partnering with CCDA to deliver the Green Climate Fund's (GCF) Readiness Program. Through close consultation with CCDA, GGGI is running capacity building activities, consulting with stakeholders, and mobilizing the private sector. This approach creates the building blocks for improved climate resilience and further sustainable development within PNG.

GGGI and CCDA also conducted a Green Growth Potential Assessment for Papua New Guinea, to identify and recommend opportunities for green growth in Papua New Guinea that support the country’s efforts to cope with climate change and achieve its development goals.  The assessment provided a detailed assessment of the potential for electricity generation from renewable sources in Papua New Guinea.

It is clear that PNG is committed to harnessing the full potential of its RE resources to achieve inclusive green growth, and with its international partners is realizing how sustainable green growth can be achieved.