A Strategic Approach to Layered Climate and Disaster Risk Financing Solutions in Fiji

Fiji is highly vulnerable to natural hazards. However, the country at present has limited capacity to effectively manage its climate risks and overcome constant significant economic losses after a natural disaster. Presently, there are limited ex-ante financial instruments (government reserve funds and contingent credit) available in Fiji and ex-post financial instruments deployed are usually reallocated from government budgets, acquired through external and internal borrowing or from donor assistance and international humanitarian aid. While Fiji has developed national Disaster Risk Management (DRM) plans, it does not have an integrated Climate and Disaster Risk Financing Framework to better manage disaster-centric economic losses in a holistic and coordinated manner. This limits Fiji’s ability to effectively operationalise its DRM plans and strategies.