Risk Assessment Crucial for Finance Sector in Solomon Islands
The Solomon Islands Government has undertaken a comprehensive Climate Change and Disaster Risk Finance Assessment to strengthen its climate resilience and disaster risk management. The assessment aimed to review the country’s climate change and disaster risk finance program against seven key pillars, guided by the Pacific Climate Change Finance Assessment Framework (PCCFAF).
Background
Climate change and disaster risk management are pressing issues in Solomon Islands. The government has identified 14 critical areas that require up-scaled and targeted financial resources. However, the country’s current systems for managing climate change and disaster risks are inadequate, resulting in limited access to climate finance.
Key Findings
- Lack of clarity on national policies and plans for climate change and disaster risk management
- Insufficient funding sources
- Poor public financial management and expenditure practices
- Gaps in human capacity, gender and social inclusion, and development effectiveness
Recommendations
Based on the findings, the report recommends a range of measures to improve the country’s climate change and disaster risk finance landscape. These include:
- Strengthening national policies and plans for climate change and disaster risk management
- Enhancing public financial management and expenditure practices
- Increasing funding sources
- Improving institutional arrangements
Draft Action Plan
A draft Action Plan has been developed to implement these recommendations, including clear timeframes and suggested responsibilities for each recommendation. The plan is intended to support the Solomon Islands Government in progressing its climate change and disaster risk finance agenda with key partners.
Significance
The assessment comes at a critical time as new climate financing mechanisms are being operationalized and the international community works towards its commitment to mobilize USD 100 billion annually in climate finance from 2020. The report’s findings and recommendations are expected to inform budget planning prioritization and effective coordination among stakeholders.
Strengthening Country Systems
Strengthening country systems is also crucial for improving donor confidence and catalyzing the achievement of sustainable development goals, which are linked to national priorities outlined in the National Development Strategy 2016-2035 (NDS).