About Climate and Eco-Finance at FDB
The Fiji Development Bank (FDB) made history as the first development bank in the South Pacific to become an accredited Direct (National) Access Entity by the Green Climate Fund (GCF). The accreditation was announced at the 18th Meeting of the GCF Board on 2 October 2017 in Cairo, Egypt.
The Bank was nominated by the Fijian Government to become a National Accredited Entity as part of the Government’s strategy to climate-proof infrastructure developments and boost the resilience of the economy.
Climate and Eco-Finance
By accessing the global funds directly, FDB will be able to manage financing that better enables Fiji’s small and medium businesses and corporations to implement projects that are climate-resilient.
With the Direct Access Accreditation, FDB will be able to blend GCF funding of up to USD $10M per project with other financing instruments to provide the best and most affordable financing package, while also continuing to deliver on its primary mandate of contributing to the development of the economy’s core focus areas. The FDB is also working towards achieving a higher level of accreditation that will grant USD $50 million per project.
Agro PV – Fiji 4MWp Agrophotovoltaic Project in Ovalau
The Green Climate Fund (GCF) has approved the Fiji Development Bank’s (FDB) USD 5 million project funding to develop an innovative solar agrophotovoltaic and a battery storage system in Ovalau. The total project cost is USD 10 million and is co-financed by GCF, FDB and KOICA. Read more: GCF Approves FDB’s Funding Proposal for Fiji AgroPhotovoltaic Project in Ovalau
Sustainable Blue Finance
Sustainable Blue Finance is related to investments that supports a sustainable blue economy. A sustainable blue economy provides social, environmental, and economic benefits for current and future generations; it restores, protects, and maintains the diversity, productivity, and resilience of ecosystems; halts the loss of biodiversity; enhances energy efficiency; and reduces carbon emissions and pollution while improving livelihoods and jobs. It is based on clean technologies, renewable energy, and circular material flows.
The Sustainable Blue Finance facility will be used to finance and/or re-finance to add value with the introduction of new activities, in whole or in part, eligible projects that will deliver focussed social and environmental benefits that are aligned with the Eligible Blue Categories as defined in the Fijian Sustainable Bond Framework. Refinancing loan is only encouraged where new value-added activities are financed by FDB that ensures sustainable blue development occurs.
Special consideration will be given, but not limited to, investments in the following priority sectors:
1. Blue shipping & E-mobility;
2. Sustainable fisheries and aquaculture/mariculture; and
3. Sustainable Eco-tourism
4. Sustainable agriculture.
FDB will exercise its professional judgement, discretion, and sustainability expertise in the process of evaluating the use of proceeds. Eligible projects must be located within Fiji and fulfil the Eligible Blue Categories.
Eligible blue categories criteria include projects such as:
- Renewable Energy
- Energy efficiency
- Pollution prevention and control
- Environmentally sustainable management of living natural resources and land use
- Aquatic biodiversity conservation
- Zero carbon transportation
- Green building
- Sustainable water and waste management
- Green building
- Sustainable water and wastewater management
- Climate change adaptation
- Research and development
- Educational and vocational training
Projects must be within 50 km of the coast or a river that drains to the ocean but 100km to Sustainable Water and Wastewater Management projects.
Capacity Development
FDB Strengthens Climate Financing Policy Knowledge for Staff
“To generate high quality proposals for climate finance investments in low emission and climate-resilient projects and programmes, we need to first empower our people with knowledge about the impacts of climate change backed by the science behind it, about the Bank’s GCF accreditation conditions and features and how the portfolio would be operationalized within the existing structure,”
