Guest essay by Eric Worrall
Fiji hopes to raise $US 50 million by selling sovereign climate bonds, to fund its transition to 100% renewable energy.
Fiji has announced it will issue a sovereign green bond of US$50 million to raise funds for the Pacific nation to tackle climate change.
Fiji hopes to raise US$50 million (A$62 million) by selling a batch of “green” bonds to investors to help tackle the environmental threats it faces from climate change.
They will finance projects to help achieve 100 per cent renewable energy by 2030, in line with Fiji’s adherence to the Paris climate change agreement.
Fijian Prime Minister Frank Bainimarama said his nation lived on the front lines of climate change.
“The rising seas, changing weather patterns and severe weather events are threatening our development, our security and the Fijian way of life, along with the very existence of some of our low-lying neighbours,” Mr Bainimarama said.
“We are also sending a clear signal to other nations that we can be creative and innovative in mobilising funds and create win-win outcomes for countries and investors in adapting to the serious effects of climate change,” he said.
The announcement comes as Fiji prepares to chair the 23rd Climate Change Conference in Germany in early November.
Five year bonds will return a four per cent interest rate, and 13 year bonds have an interest rate of 6.3 per cent.
No doubt virtue signalling politicians across the world will leap to purchase Fiji’s climate bonds with your money.