Fiji has become the first emerging market to issue a sovereign green bond, raising $100 million Fijian dollars to support climate change mitigation and adaption.

Green bonds are fixed income, liquid financial instruments that are used to raise funds dedicated to climate-mitigation, adaptation, and other environment-friendly projects.

At the request of Fiji’s Reserve Bank, the World Bank and the International Finance Corporation (IFC), provided technical assistance to assist the government in issuing the sovereign green bond.

Projects financed from the Fiji green bond will follow the internationally developed Green Bond Principles, and will focus primarily on investments that build resilience against the impacts of climate change.

Fiji will also use bond proceeds for projects supporting its commitment to achieve 100% renewable energy and reduce its CO2 emissions in the energy sector by 30% by 2030.

Prime Minister and President of COP23 Voreqe Bainimarama says with this bond, Fiji has demonstrated that green capital markets can be created in emerging economies, and that all countries, big and small, have an important role to play in facilitating climate solutions.