Fiji launches its first-ever Green Finance Taxonomy to boost climate-resilient investment

Fiji has officially launched its first-ever Green Finance Taxonomy, a landmark achievement in the country’s efforts to transition towards a more sustainable and climate-resilient economy.The initiative, led by the Reserve Bank of Fiji in collaboration with the International Finance Corporation and the Climate Bonds Initiative, establishes a unified framework to guide financial institutions in identifying, assessing, and classifying green and sustainable investments.RBF's Chief Manager Financial System Development Group, Caroline Waqabaca emphasised that the taxonomy plays a vital role in addressing concerns about greenwashing, where investments are falsely marketed as environmentally friendly, by providing clear, standardised criteria for what qualifies as a green or sustainable investment.She says many stakeholders still struggle to understand what constitutes a genuine green investment, and the taxonomy is designed to bridge that gap by offering financial institutions, particularly lenders, a practical guide for determining whether an activity or project can be classified as green.She adds that it also serves as an information resource for businesses seeking to enter the green economy, policymakers developing incentives, and researchers and members of the public interested in sustainable finance.Minister for Finance, Commerce and Business Development, Esrom Immanuel says the launch marks a historic milestone as Fiji faces rising climate threats, including cyclones, floods and sea-level rise.Immanuel says the taxonomy aligns with global developments, including COP30, which set a target of mobilising US$1.3 trillion annually by 2035 for climate action.He says Fiji’s taxonomy reflects this shift by outlining criteria for mitigation, adaptation, and resilience, and integrating social safeguards to ensure a just transition.Australia’s High Commissioner to Fiji, Peter Roberts stressed that the taxonomy is a critical step towards building a resilient, sustainable financial system.He highlighted Australia’s partnership with Fiji and the IFC, saying that mobilising climate finance is essential for Fiji’s climate and economic ambitions.He says that to build resilience, Fiji, and all of us, must mobilise substantial investment in climate adaptation and mitigation.He adds that Australia is also developing its own taxonomy and sees strong opportunities for learning and alignment between the two countries.