Caritas research reveals $6.3b shortfall for climate action

The findings raise concerns that Pacific governments already burdened by debt may be forced to borrow even more to protect communities from a crisis they did little to create.

A new report, Turbulent Waters: Navigating Debt and Climate Vulnerabilities in the Pacific, estimates that Pacific countries may collectively face an annual climate-related funding shortfall of between $4.7 billion and $6.3 billion. This includes funding needed for climate adaptation, responding to loss and damage from cyclones, drought and other extreme weather, and supporting the transition to renewable energy.

While the figure is substantially higher than previous estimates, the report’s authors stress this does not mean the cost of climate impacts in the Pacific have suddenly worsened. Instead, it reflects a much better understanding of what adaptation measures will cost.

Published by Caritas, Jubilee Australia and Misereor, an agency of the German Catholic bishops, the report examines the growing pressure created by the combined challenges of climate vulnerability and public debt across the Pacific. It argues that wealthier nations, including Australia and New Zealand, must provide significantly more grant-based support so Pacific countries are not pushed deeper into debt.

Earlier estimates have put average adaptation needs at around 6.6 per cent of GDP per country. For example, in Fiji, debt servicing now absorbs 22 per cent of government revenue and exceeds spending on both the health and education sectors.

Mena Antonio, vice president of Caritas Internationalis and chief executive of Caritas Aotearoa New Zealand, said the report highlights a growing injustice facing Pacific countries.

“The Pacific is being asked to pay twice,” she said. “First, through the impacts of climate change and again through servicing the debt needed to respond to those impacts. Communities cannot borrow their way to safety. Wealthier nations must step up to help Pacific countries adapt, recover and thrive.”

The findings were released ahead of pre-COP31 climate negotiations in Nadi, Fiji, where Pacific leaders, churches and civil society organisations are calling for climate responses grounded in justice, solidarity and the priorities of affected communities.

FULL STORY

Pacific countries need more than $6 bn/year to cover cost of climate change (Caritas Aotearoa New Zealand)