Between 2025 and 2030, the annual cost of climate change adaptation for the Blue Pacific region is estimated to be over $7.34 billion.

This is in stark contrast to the current annual climate finance flow of less than $3.66 million, which is barely five percent of what is needed.

Speaking at the Oceania Institute Inaugural Oceania Oration at the University of Melbourne, Deputy Prime Minister and Minister for Finance, Professor Biman Prasad, highlighted that while the region has made progress in human development, significant challenges remain.

Professor Prasad says there is persistence of poverty, deteriorating health indicators, and high rates of gender violence.

He adds the region also faces growing threats from violent crime and drugs, as well as the compounding costs of recovering from natural disasters like earthquakes and cyclones.

Professor Prasad highlighted the devastating financial impact of these disasters by using the recent example of Vanuatu, where the combined recovery cost from cyclones and an earthquake amounted to around 90 percent of its GDP.

To put this in perspective for an Australian audience, he says it will be equivalent to Australia losing $1.6 trillion of its economy over three days.

He stated that that for small island economies, it is incredibly difficult to find the resources to fund recovery efforts and borrow money after catastrophes.

These climate-related disasters he adds cause a “ruptured” development period that can last a decade or more, leading to long-term economic and human tolls.

Professor Prasad concluded by stating that despite the global trend of reduced international development assistance, small island states will continue to require significant support from their development partners to address these enormous challenges.

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