Climate Change Impact and Structural Reforms in Kiribati
KIRIBATI
arrangement between the ADB's Asian Development Fund acting as the AE, the WB, and the GCF.
The first disbursement occurred in February 2021, and the project has faced some delays because of
the COVID-19 pandemic and the border closures. Delays in disbursements from the GCF seem to
continue as of the first quarter of 2023, and the GoK should continue its close cooperation with the
partners to ensure the project is implemented.
26. Going forward, embedding climate projects in a coherent national strategy, improving
capacity, and coordinating with other PICs is important to unlock climate financing. In the
medium to long term, a national strategy on climate would benefit Kiribati by reducing the time
needed to produce concept notes for submission at AEs, and by clarifying the roles and
responsibilities of all branches of governments. This should streamline decision making within Gok
and reduce the time between inception and implementation of climate projects. PFM/PIM capacity
building is an area where all PICS struggle, and the IMF has been actively aiding these efforts
especially through its Pacific Financial Technical Assistance Center (PFTAC). Refocusing these efforts
in the areas targeted by CFs' PFM requirements, such as audit and control frameworks, may be a
good way to ensure better climate finance access for Kiribati in the medium term. Finally, Kiribati
may benefit from expanded collaboration with other PICS in the fora of SPREP and PIFS, with a view
to coordinate efforts with nations that face similar challenges in terms of climate adaptation and
mitigation needs and possibly gain from economies of scale in the preparation of concept notes and
applications.
E. Conclusion
27. Kiribati is among the nations most exposed to the risks posed by a changing climate.
Climate change may lead to new and intensified natural hazards, even though significant uncertainty
remains in model-based projections of risk and localized effects from climate change are hard to
predict with confidence. Sea level rise has impacted Kiribati islands through territory loss and forced
relocation and is predicted to further endanger communities scattered across the atolls. Crucial
natural resources such as fisheries and freshwater lenses, on which Kiribati is heavily dependent, are
also endangered directly by climate change.
28.
Adaptation and mitigation projects are crucial to protect and increase the resilience of
the economy of Kiribati. Adaptation efforts have been undertaken for decades but will have to be
scaled up to ensure viability of public infrastructure and protection of natural resources. Despite
contributing almost nothing to global greenhouse gas emissions, Kiribati has made ambitious
pledges to decarbonize its economy. Measures like solar panels installation, environmental
standards, and regulatory requirements, and possibly carbon taxes are instruments that could be
considered to implement these plans.
29.
Leveraging climate finance effectively is critical to ensure Kiribati implements climate
projects. Given the size of its economy and the scale of the challenge, Kiribati needs external
support to finance mitigation and adaptation investments. To date, approved bilateral and
multilateral funds have covered a small fraction of the total estimated investment needs, with actual
disbursements at significantly lower levels. In the short-term, the GoK should seek to obtain funding
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