US$200 million in finance for private sector climate change projects


Climate change is the ‘single greatest threat to the livelihoods, security and wellbeing of the peoples of the Pacific’, according to a report by the Pacific Islands Forum Secretariat. But the region is showing leadership and there are opportunities for Papua New Guinea enterprises to access finance for climate-related projects.


Climate change is threatening many Pacific Islands. Source: Pacific Island Forum Secretariat

Papua New Guinea is already accessing international climate finance from a number of sources, including the Kyoto Protocol Adaptation Fund, the Climate Investment Fund and other multilateral and bilateral funds, according to Exsley Taloiburi, Acting Climate Change Finance Adviser for the Pacific Islands Forum Secretariat (PIFS).

He says an area of particular interest to business in PNG is the Green Climate Fund. Within that Fund there is a dedicated ‘Private Sector Facility’ intended to support private sector investments related to climate change.

‘US$200 million will be allocated for a Pilot Program to support micro, small and medium enterprises, in part targeted at Small Island Developing States and Less Developed Countries. The deadline for the first request for proposals is August 30 this year.’

Taloiburi says half of the total resources made available under the Global Climate Fund will be for adaptation, while half will be for mitigation.

He says existing or potential accredited entities, or qualified financial institutions, are invited to propose approaches that ‘deploy financial solutions establishing private equity, guarantee, debt or grant projects/programmes.’

Adaptation and mitigation

Rising water levels are a challenge, especially for smaller Pacific Islands. Source: PIFS

Rising water levels are a challenge, especially for smaller Pacific Islands. Source: PIFS

Taloiburi says half of the total resources made available under the Global Climate Fund will be for adaptation, while half will be for mitigation. ‘For the adaptation window, half of that will be specifically for Small Island Developing States, Less Developed Countries and Africa.’

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He describes it is ‘positive progress that efforts are being made to simplify templates for small-scale projects and readiness support.

‘This is critical to addressing the vulnerability of Small Islands Developing States.’


A report by the PIFS, Opportunities to improve access to climate change finance, comments that the ‘Pacific is showing leadership’ in ‘progressing’ the Paris Agreement, an international compact signed last year which is designed to deal with greenhouse gases emissions mitigation, adaptation and finance. It is set to come into force in 2020.

PNG has a policy of being fully renewable in its energy use by 2030.

However, Taloiburi says there are areas where PNG can improve: ‘developing internal institutional and human capacity so as to be able to absorb and effectively implement projects’.

There also needs to be ‘financial management systems to meet the fiduciary standards required for direct access to resources from the Green Climate Fund,’ he says.

Fully renewable

PNG has a policy of being fully renewable in its energy use by 2030. Taloiburi believes the country has a major focus on reducing fossil fuel emissions in the electricity generation sector.

‘The target was for 100 per cent renewable energy by 2030, contingent on funding being made available. In addition, PNG will improve its energy efficiency sector wide and reduce emissions where possible in the transport and forestry sectors.’

‘Energy efficiency initiatives could be encouraged by policy decisions.’

Taloiburi says the PNG government in its recent submissions has, however, ‘made clear that little domestic finance is available’—although government assistance will be provided where possible. He says private finance could be made available especially for the mining and oil and gas sectors.

‘Energy efficiency initiatives could be encouraged by policy decisions. However, the transition to renewable energy in the electricity sector would need to be mostly financed from external sources.  Gaining access to mitigation and adaptation project funding from the GCF would be beneficial to achieving progress.’


Taloiburi acknowledges that in the past Pacific Island Countries have found it ‘difficult and cumbersome’ to navigate the requirements of gaining access to different funding sources.

The largest global climate change fund, known as the Green Climate Fund (GCF) … has an initial resource mobilisation of US$10.3 billion.

‘This is due to a number of issues, including lack of capacity and the varying strength of national institutions and public financial management systems.’

Taloiburi says the PNG government has set up a formal mechanism to deal with climate finance. ‘In regards to the largest global climate change fund, known as the Green Climate Fund (GCF), which has an initial resource mobilisation of US$10.3 billion, PNG already has a National Designated Authority (NDA), which is the Office of Climate Change and Development.’


  1. Simon Boi says

    I am thankful for this funding assistance. I come from a very cold climate region of Tambul in Western Highlands Province. We have potential areas to participate in the climate change program. We have untouched vagine forest, savannah grasslands for afforestation, fresh flowing rivers and lakes, valleys, hills etc. The fast flowing rivers and waterfalls are potential to go into projects like hydro power generation, trout projects or water supply project. This particular region forms Mt Sugarloaf,.it stretches from the west of Tambul Station to the east borders with Kandep, to the north to Tsak Valley and to the south to Upper Mendi. It lies at the borders of these areas is like no men’s region. Government should step in with financial assistance empowering the local people to participate in any environmental friendly projects would greatly help reserve our environment and will really serve the purpose. Therefore, should any interested group, individual or the Dept of Climate change wanted more information, please do not hesitate to contact me on email: or cell phone: 67570060005.

  2. Robert Yentha Bagiel says

    Thank You for this useful information.

    I have just completed Conceptual Designs for a 30 Storeys High-Rise Green Building in Port Moresby, which is currently going through Town Planning Approvals. This building will need such Funds to materliase.

    I will make contact with the Office of Climate Change and Development to seek this Fund.

  3. This is the wonderful project ever introduced to Pacific/PNG under the Climate Change Program initiatives in PNG.
    Thus, PNG Government, PIFS and Business Advantage should seriously promote this initiatives at the highest level and priority.
    I am very pleased to see and read that this is the PRIVATE SECTOR DRIVEN COMPONENT Program earmarked for the Climate Change Mitigation and Adaptation Program. There are many similar programs by the State agencies and Civil Societies failed to achieve and real results. Private Sectors can convert this program to grow rural economy to reduce extreme poverty in PNG. I would appreciate if you could send us the guidelines or application Forms to participate in the program

  4. Garaio Gafiye says

    This is the best initiative so far that will support access to electricity in PNG where access is about 13%, which would be the lowest in PICTs. In PNG 87% of the population live in the rural remote areas and therefore more standalone renewable energy systems should be the solution to improving the standard of living. There are a number small companies/organisations trying to support standalone power systems but lack financial support. I have experience in designing small-scale micro hydro and solar power systems which I have been doing for 32 years but implementation has been a problem due to lack of financing. I manage Clean Energy Solutions based in Goroka, EHP and I have been assisting EDD of SPC with M3P projects in PNG. Last month I completed solar training for Women’s groups from PNG, SI and Vanuatu on Tanna Island, Vanuatu, I am looking for more information on accessing finance to support RE and climate change work in PNG and PICTs.
    Garaio D Gafiye
    Clean Energy Solutions
    P. O. Box 1145 Goroka, PNG

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