Further investment in resilient and renewable energy systems is much needed in the Blue Pacific.
Unlocking private sector-led growth requires robust regulatory frameworks that fosters local and foreign firms to invest. Supported by government institutions with help from donors and development partners in our region, national policies and regulations can stimulate economic activity. Coupled with attractive incentives, investors will gain confidence to support national climate change policies which in turn will creative productive jobs. The ultimate outcome for any country in the pacific, is having fit-for-purpose, integrated investment climate solutions, designed sorely to address their energy needs.
Resilient renewable energy infrastructure that will deliver transformative benefits to a country is at the forefront of an ambitious, multi-year investment programme negotiated recently in Niue. Such bold initiatives require timely access to scaled-up, effective and sustainable climate finance.
Niue is a small Pacific Island country situated between Tonga, Samoa and the Cook Islands. The island is 259 km2 in size with an Exclusive Economic Zone (EEZ) of 300,000 km2 , most of which is in a marine-protected area. Niue is one of the world’s largest elevated coral atolls. The average height above sea level is 23 metres and the highest elevation less than 70 metres.
The island nation is vulnerable to climate risks such as tropical cyclones and droughts; geological risks such as earthquakes and tsunamis; and human-caused risks such as disease outbreaks and contamination of its limited fresh water supply. Niue’s risk profile is also inherently linked to its isolation, and limited capacity to manage and respond to disasters and climate change impacts.
Pacific Trade Invest New Zealand (PTI NZ) spent the better part of a year engaging with Island Power and the Institute for Strategy, Resilience & Security @ UCL based in the United Kingdom to take a look at Niue’s energy sector as a viable investment opportunity. After months of meetings online with the Government of Niue, the team of PTI NZ and Island Power were able to travel to Niue to personally meet with the government and stakeholders.
The commitment by the parties will be guided by the intentions outlined in the Memorandum of Understanding signed in Niue in January this year.
“Pacific Islands’ reliance on fragile and costly, carbon-intensive supply chains is colossal. So too is the investment opportunity. Naturally, a great benefit of the proposed community-owned infrastructure project will be to reduce dependence and energy debt for the people of Niue. Working with the government and communities of Niue, we will be able to deliver long-term benefits to the island nation” says Marcus Saul, Director of Island Power.
The sheer scale of pacific island economies reliance on costly, carbon-intensive supply chains is a massive but neglected opportunity for smart, informed climate investment in fuel-cost and CO2 reduction. The generation of electric power is inextricably connected to environmental issues, most notably climate change. In practical terms in the real world, this requires a change in focus from gas emissions to the potentials and logistics of investment in resilient energy solutions that will have a real and lasting impact on the lives of Pacific peoples. The technology and know-how exist to make this happen.
Island Power Director Marcus Saul says that the challenge, up until now is how to break this dependence and create independent, resilient, renewable-energy systems that ensure stable returns on investments.
Speaking in Niue recently, Glynis Miller said, “Pacific Trade Invest New Zealand is committed to assisting Pacific Island Countries expand their export markets and benefiting from inbound investment. By lending our resources and connections, we can help to bring resilient investment solutions that address the impacts of climate change and natural disasters, towards energy efficiency and reliability. This responds in part to the 2050 Strategy for the Blue Pacific Continent, endorsed by Forum Leaders in 2022.”
Frank Sioneholo of the Treasury Department and Head of Trade & Investment adds, “The initiative has been developed from extended consultations among the parties, considering new modalities for renewable energy technology and potential investment opportunities that aim to achieve energy resilience and independence for Niue.”
Founded in 1979, PTI is an agency of the Pacific Islands Forum Secretariat working to facilitate trade and investment opportunities in the Pacific Islands.
Rohan Parekh is the Investment Facilitation Manager at Pacific Trade Invest New Zealand. Rohan can be contacted via email rohan.parekh@pacifictradeinvest.com
