The World Bank has announced a commitment of $7 million in grants to enhance Tuvalu's management and resilience against climate-related disasters. This initiative, known as the Tuvalu Second Climate and Disaster Resilience Development Policy Financing, is the second operation in a series designed to mitigate climate impacts and improve disaster preparedness.
Tuvalu faces significant challenges due to its vulnerability to rising sea levels, cyclones, droughts, and other climate events. These issues have led to economic losses amounting to nearly 7% of the country's GDP annually, as highlighted in the World Bank Group’s 2024 Pacific Atoll Countries Climate and Development Report. Such disruptions hinder budget planning and essential service delivery.
“Strengthening our ability to better manage, account for, report on and allocate funding for disaster response and climate change adaptation is critical for Tuvalu,” stated Hon. Panapasi Nelesone, Tuvalu’s Deputy Prime Minister and Minister of Finance and Economic Development. “This grant financing will assist the government of Tuvalu in improving financial management while strengthening climate-resilient infrastructure.”
The grant aims to help the government with assessing, monitoring, reporting on, and managing climate financing. It will also support policy reforms for efficient disaster response funding allocation; ensure rapid provision of emergency supplies during disasters; equip institutions for constructing resilient buildings; and improve emergency systems for better recovery from disasters.
“Supporting Tuvalu’s climate resilience and strengthening institutional capacity is critical for Tuvalu’s economic stability and growth,” said Stefano Mocci, World Bank Country Manager for the South Pacific. “The World Bank remains committed to development initiatives such as this grant support that are aligned with Tuvalu’s National Strategy for Sustainable Development 2021–2030.”
This effort is part of a coordinated budget support under the Government’s Policy Reform Matrix with contributions from partners like the Asian Development Bank, Australia, New Zealand, and the European Union.