Turning plans into fundable projects: Island territories bring climate finance solutions to COP31

By Mar-Vic Cagurangan

French Polynesia integrates local knowledge into coastal planning, while New Caledonia aims at cutting greenhouse gas emissions by at least 70 percent by 2035.

The two French territories in the South Pacific are among the 23 locations across four continents that stand to receive investment support for local climate projects that the EU-funded Green Overseas Program helped develop based on feasibility studies.

"The funding exists. The challenge is to match (overseas countries and territories) with the right funding opportunities and build their capacity to turn priority projects into fundable proposals," said Nicolas Andrade, project

manager of the Green Overseas Program. 

Green Overseas has identified practical climate solutions to be tackled in Antalya, Türkiye, where world leaders gather this week for the United Nations’ COP31, the largest international summit to push global agenda on climate change.

Green Overseas said its work builds on six years of program activity, including 31 projects developed in individual territories covering climate resilience and energy transition plans.

Priorities include on water security, coastal management, local food production, 

climate adaptation plans and strategies and energy efficiency, among others.

Robert-Jan Moons, secretary of the Green Overseas' expert working group on climate finance, noted that access to finance was a common challenge shared by overseas countries and territories.

"In response, GO's Climate Finance Community developed tools, provided training and conducted joint studies to raise awareness and strengthen stakeholders' capacities," Moons said.

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In the South Pacific, Green Overseas cited studies supporting investment-ready projects in French Polynesia and New Caledonia.

In Tahiti, a study on coastal changes in six Tuamotu atolls and Pointe Vénus projected additional shoreline loss associated with climate change and storm

impacts, guiding informed coastal planning and adaptation.

“Eight public meetings and 84 interviews ensured that local and traditional knowledge contributed to the assessment,” Green Overseas said.

In New Caledonia, transportation is the second largest emitting sector—next to mining and metallurgy—running a fleet of 206,000 light vehicles with an average age of 11 to 12 years. These vehicles were imported from Europe, Asia and the United States, each market measuring emissions its own way, Green Overseas said.

“The study highlights that financing approaches need to reflect each territory's circumstances. Financial sector maturity, project scale, legal frameworks and institutional capacity all influence which mechanisms are viable,” Green Overseas said.

Other studies were conducted in the Caribbean, the Indian Ocean and the Arctic.

The program brought together representatives from the 25 overseas countries and territories for a four-day closing Forum in Paris last week, where it presented the findings, which are now to be discussed in Antalya.

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At the Paris forum, UK's Foreign, Commonwealth and Development Office announced its new Climate Finance Support Program, with a three-year £20.5 million pilot expected to mobilize in 2027 for British territories.

"The initiative reflects growing recognition of the specific challenges these territories face in accessing international climate finance and the need for more 

targeted support to turn climate priorities into investable projects," Green Overseas said.

Among 18 financial mechanisms assessed, Green Overseas identified five with potential to support investment across the territories.

●  Green and blue bonds. In the Cayman Islands, Caribbean Utilities

 Company raised $50 million in 2024 to finance renewable energy, energy efficiency and climate adaptation projects.

●  Carbon markets. Island territories hold significant natural carbon stores, including approximately 4,500 km² of peatland in the Falkland Islands, 930 km² of seagrass meadows in New Caledonia and 800 km² in the Turks and Caicos Islands. These ecosystems offer opportunities to explore carbon finance while

 supporting conservation and coastal protection.

●  Conservation trust funds. On Ascension Island, a GBP 2 million endowment established the AIMPACT fund, which supports environmental activities through investment returns.

In Niue, companies and individuals can contribute NZ$ 250 toward protecting one square kilometer of ocean for 20 years.  

  In the British Virgin Islands, the Climate Change Trust Fund supports climate resilience and the transition to renewable energy, with initial capital of approximately US$6 million in 2017, financed through the tourism levy 

(US$10 per passenger), 40 percent of which is allocated to the Fund.

● Blended finance. Combining public, concessional and philanthropic funding can help reduce investment risks and attract private capital. In the Caribbean,

 EU-backed blended finance is supporting start-ups developing commercial products from sargassum seaweed.

●  Environmental levies. Aruba charges visitors a US$20 contribution, creating a predictable local revenue stream for climate infrastructure and conservation.

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