Tonga Prime Minister Lord Fatafehi Fakafanua has called for greater investment in climate adaptation, saying Pacific Island countries face their biggest security challenge from climate change and need support to build resilient infrastructure, strengthen economies and prepare communities for a changing climate.
Speaking to Net Zero Investor, Lord Fakafanua said climate change has shaped Tonga’s development priorities because of the country’s vulnerability as a small island developing state.
“Climate change is not a new phenomenon. It’s something I grew up around and has had scientific consensus since the 1980s. Being a small island developing state, we are at the forefront of the effects of climate change. So it was really a no-brainer for development plans and proposals for the future that we ensure we are still around.
“Adapting to climate change and mitigating climate change has rightfully been adopted by Pacific Island countries as our premier security challenge,” he said in the interview.
The Prime Minister said responding to climate change requires investment in both mitigation and adaptation, but adaptation presents greater challenges.
“The response to climate change is two pronged. There’s mitigation and there’s adaptation. Mitigation is where a lot of investment in happening right now.”
“Adaptation is a lot more difficult. It is about learning to live with the changing climate and new weather conditions. That means we have to build sea walls or relocate people, which are both very expensive. It also means looking at nature-based solutions – replanting mangrove forests or trees – and investing in food technology so that crops are more resilient,” Lord Fakafanua said.
Lord Fakafanua said preparing Tonga for climate change also requires resilient infrastructure and stronger building standards.
“In order to prepare our people for climate change, we also need to have resilient infrastructure. That means relocating to higher locations and having building codes that can weather intense tropical cyclones.
That is something our economy is already burdened with heavily given that infrastructure through to 2030 is at a US$1.4bn deficit,” he said.
Lord Fakafanua said the Tonga Sustainable Economic Corridors and Urban Resilience Project is a key part of the country’s resilience plans.
“It really helps empower the whole theme of resilience through flood, drainage and water supply systems. It sounds boring but these are really the brick and mortar foundations of Tonga’s economic empowering,” he said.
Lord Fakafanua said one of the major investments under the project is a bridge that will improve transport and emergency response.
“Part of it is a large investment in a bridge. The bridge will help ensure urban migration is supported. It will cut commute time from town to the airport in half, so it adds efficiency to how much petroleum we’re consuming. The bridge also enables us to evacuate more efficiently in the event of a tsunami,” he said
The Prime Minister said attracting investment also requires Tonga to strengthen its investment environment.
“Part of the challenge we’re facing is to ensure that Tonga has an investment market and an economy conducive for growth. We need to develop our back offices.”
“We have to have necessary regulations, backstops and investment protections in place. It is also important to recognise that we have a unique land tenure system that protects the rights of the Tongan people. For some investors that might be unwieldly to understand but we do have leases available for investors. You can lease up to 99 years and as an investment vehicle that should be sufficient to alleviate a lot of concerns,” he explained.
Lord Fakafanua said the transition to renewable energy is also central to Tonga’s energy security and economic future.
“Absolutely. Decarbonising and insulating ourselves from external shocks is part and parcel of our energy ambitions. It’s not only good for the climate, but also for the economy.”
He said renewable energy could create opportunities across multiple sectors.
“From renewable energy, we’ll be able to desalinate water, enable more industries, more tourism, larger hotels, small manufacturing and also data centres. If renewable energy is at a competitive price, AI data centres could be set up in Tonga.
In enabling fronter markets and new technologies, we are technology agnostic. As long as we have enough baseload power to substitute diesel generation in Tonga, we can sprinkle our energy mix with renewable energy on top of that,” the Tongan PM said.
Lord Fakafanua also urged institutional investors to consider the impact their investments could have in Tonga.
“Look beyond the obvious. A lot of investors will see Tonga as an exotic and small market. I think you need to look at this from an impact perspective. Whether the investment is at US$100m or US$500m or a billion, the impact you’re realising at that level is quite high. Our government has been around for five months now and we’re looking to open Tonga up for institutional investment.”
“If you want to make a difference, Tonga will welcome your investment,” he said.
