Pacific Islands Forum Secretary General Baron Waqa has issued a strong call for private finance to play a greater role in supporting Small Island Developing States (SIDS), warning that current investment flows are failing the Pacific region at a time of escalating climate and economic challenges.
Speaking at the 2025 OECD Conference on Private Finance for Sustainable Development (CoP-PF4SD) this week, Waqa highlighted the paradox of global capital availability: while investment levels have never been higher, only a fraction is reaching the world’s most vulnerable economies.
“Capital flows have reached unprecedented levels, yet far too little is reaching SIDS,” Waqa said. “Our nations, scattered across vast oceans, are on the frontlines of the climate crisis, economic shocks, and shifting geopolitical tensions. The time for talk is over—what we need now is bold action.”
Waqa pointed to the 2050 Strategy for the Blue Pacific Continent as a roadmap for sustainable development, saying it offers significant opportunities for climate-conscious investors willing to look beyond traditional financial metrics.
“The Pacific has a comprehensive plan for resilience, but without consistent climate investments, we are left vulnerable,” Waqa said.
“The weak commitments from COP29’s New Collective Quantified Goals and the U.S withdrawal from the Paris Agreement are stark reminders that Pacific nations cannot rely solely on external pledges. We need a new financial architecture that delivers real results.”
Waqa raised critical questions about the failure of private finance mobilisation:
“Why are we not delivering more on the promise of private finance mobilisation? More importantly, how do we change this?”
He proposed three key levers to bridge the financing gap:
*Shifting the Role of Development Finance
“Donors and Development Finance Institutions (DFIs) must evolve from being mere funders to becoming catalysts for private investment,” Waqa said.
“DFIs must unlock their balance sheets and allow Pacific SIDS to access blended finance collectively, rather than limiting us to the constraints of individual nations.”
*Rethinking Risk and Return
Waqa challenged investors to reconsider how they measure success in climate financing.
“We must align public funds with private capital to drive long-term transformation. Returns should not be measured solely in financial terms—investments in SIDS must also be valued for their social, environmental, and human impacts,” he said.
*Enhancing Capacity-Building and Institutional Strengthening
“Building resilient infrastructure, enabling cross-border digital economies, and strengthening institutions will ensure that climate investments deliver lasting change,” Waqa said.
“Investing in the Pacific is not just about funding projects—it’s about securing a future for our people and our planet.”
SG Waqa also highlighted the Pacific Resilience Facility (PRF)—a new Pacific-led and managed financial institution designed to fund climate adaptation, disaster preparedness, and nature-based solutions across the region.
“Our leaders have mandated the establishment of the PRF to demonstrate a transformational Pacific response to the slow, complex, and inadequate global financing system,” Waqa said.
The PRF will be collectively owned by Pacific Islands Forum Governments and aims to raise an initial capitalisation of USD$500 million by 2026, with an ultimate goal of USD$1.5 billion to align with global commitments to limit warming to 1.5 degrees Celsius.
“The PRF is not just another fund—it is a sustainable, Pacific-driven solution designed to support community-led resilience initiatives,” Waqa explained.
The PRF Treaty will be formally signed at the 54th Pacific Islands Forum Leaders Meeting in the Solomon Islands, marking a critical step in cementing the region’s long-term financing strategy.
Waqa urged the global investment community to step up and support the PRF, emphasising that Pacific SIDS are not seeking charity but genuine investment partnerships.
“This is not a handout—it’s a smart, future-focused investment,” Waqa said. “The Pacific is ready with solutions, with governance structures in place and a clear plan for climate resilience. The question is: are you ready to invest?”
He also highlighted blended finance solutions and collaborations with philanthropic organisations and development banks as key mechanisms to amplify the impact of private investment while reducing the debt burden on Pacific nations.
“Innovative funding strategies, such as the PRF’s Contingency Sub-Fund for remote communities, ensure that our region is prepared for future crises without relying on slow-moving international processes,” Waqa added.
Waqa also challenged the conference delegates to move beyond rhetoric and make real commitments to Pacific resilience.
“Distinguished delegates, we urge you to recognise the tremendous potential of investing in the PRF. This is an opportunity to uplift communities, drive sustainable development, and create meaningful change,” he said.
“Let us leave this conference with tangible commitments to mobilise capital for the Pacific. Together, we can make a difference,” he said.
