Fiji has taken a major step toward strengthening its long-term sustainability vision with the launch of its first Green Finance Taxonomy, a landmark framework designed to guide investments into climate aligned and environmentally responsible economic activities. The new taxonomy is expected to accelerate Fiji’s transition to a low-carbon economy while mobilizing private capital to support national development goals.
Speaking at the official launch, Minister for Finance, Commerce and Business Development Esrom Immanuel highlighted the Taxonomy as a crucial tool for steering investments toward Fiji’s climate and sustainability priorities.
“The Fiji Green Finance Taxonomy provides a clear framework for channelling private capital into climate-aligned investments, advancing our national environmental and development priorities,” Immanuel said. “This initiative is a pivotal step toward strengthening financial resilience and ensuring stability in the face of escalating climate challenges.”
The launch represents the successful collaboration between the Reserve Bank of Fiji (RBF), the International Finance Corporation (IFC), and the Climate Bonds Initiative (CBI). Together, these institutions developed a comprehensive guide designed to streamline green finance in Fiji and help the country respond more effectively to climate threats.
Australia’s High Commissioner to Fiji, Peter Roberts, underscored the importance of such initiatives in strengthening regional climate leadership. He noted that aligning Fiji’s financial framework with global standards including Australia’s own Sustainable Finance Taxonomy would help unlock a wider pool of sustainable investments.
“Aligning Fiji with global standards will unlock more opportunities for projects that protect the environment and support local communities,” Roberts said. “We applaud RBF’s leadership and its collaboration with IFC in laying this foundation, and we look forward to continued engagement to expand inclusive, high-impact green finance in Fiji.”
A Critical Move for a Climate-Vulnerable Nation
Fiji, like many small island developing states, is acutely vulnerable to climate change. Rising sea levels, intensified cyclones, coastal erosion, and unpredictable rainfall patterns pose severe risks to communities and infrastructure. Over the years, Fiji has positioned itself as a global advocate for sustainability and climate action ratifying the Paris Agreement early and rolling out national strategies such as the updated Nationally Determined Contributions (NDCs), the Climate Change Policy 2018–2030, the Green Growth Framework, and the Low Emissions Strategy 2018–2050.
RBF Governor Ariff Ali reiterated the central role that sustainable finance will play in safeguarding Fiji’s economic future.
“This Taxonomy is a cornerstone of Fiji’s sustainable future, empowering the financial sector to channel investments into climate aligned projects and drive a resilient, low carbon economy,” Ali stated.
Key Functions of the Fiji Green Finance Taxonomy
The new Taxonomy is designed to strengthen Fiji’s sustainable finance ecosystem through:
- Clear definitions of green investments – establishing a common understanding of what qualifies as “green” or “sustainable” in the Fijian context.
- Mobilizing private capital – creating a predictable, transparent environment that encourages investment in sustainable projects and innovative financial products.
- Improving transparency and integrity – providing criteria that help prevent greenwashing and increase investor trust.
- Supporting policy implementation – acting as a reference point for government incentives, financial regulations, and sectoral guidelines linked to sustainability.
- Building national capacity – enabling shared learning across institutions, regulators, and private-sector stakeholders.
- Strengthening measurement and reporting – integrating with Fiji’s Measurement, Reporting and Verification (MRV) framework to track the impact of green investments and improve accountability.
Version 1.0 of the Taxonomy focuses primarily on climate change mitigation, with special emphasis on the energy and transport sectors two of the largest contributors to greenhouse gas emissions in Fiji. Activities approved under the Taxonomy are assessed using rigorous technical and social safeguards to ensure they support climate and sustainability goals without negatively affecting other environmental priorities.
Global Partners Applaud Fiji’s Leadership
World Bank Group Country Manager Stefano Mocci highlighted the critical role that central banks play in building sustainable finance standards.
“Central banks play a pivotal role in driving the sustainable finance agenda by setting credible standards that strengthen market confidence,” Mocci said. “We commend the RBF’s leadership and the strong collaboration with IFC, supported by the Government of Australia, in the development of the Green Finance Taxonomy.”
CBI’s Head of Taxonomy, Matteo Bigoni, added that Fiji’s new framework will help shift the country from “ambition to action,” ensuring capital flows toward projects that offer tangible sustainability and climate-resilience benefits.
Looking Ahead
Developed with extensive input from government agencies, financial institutions, and private-sector leaders, the Taxonomy is tailored to Fiji’s unique environmental and economic landscape. The RBF will now work with partner institutions to build capacity and ensure effective implementation across the financial system.
With this Taxonomy in place, Fiji is better equipped to attract sustainable investments, strengthen climate resilience, and advance its long-term sustainability goals.