The Basel Agency for Sustainable Energy (BASE) is planning for the development of a remittance-based finance vehicle in Fiji, Tonga and Vanuatu. It is hoped this will improve the climate resilience of the South Pacific islands for the future. The Swiss foundation for financial strategies and unlocking investment in climate change solutions has launched its project Remitresilience in the Pacific with the two international non-profit organizations of Oxfam in the Pacific and Convergence. BASE is also a partner of the UN environment program.
As BASE writes in a press release, Tonga’s development has been severely hindered by tropical cyclones, rising sea levels, storm surges and droughts. Most recently, the violent eruption of the underwater Hunga Tonga-Hunga Ha’apai volcano on 15 January - purported to be the largest recorded anywhere on the planet in the past three decades - left thousands of people without homes and basic supplies. The incoming humanitarian aid from other countries has also now exposed Tonga to the first COVID-19 outbreak since the start of the pandemic, making the financial needs even more urgent.
Due to the fact that the volcanic eruption also wiped out the only fiber-optic cable that connected the islands with the rest of the world, emergency remittance from abroad was impossible in this time of greatest need. The eruption has essentially confirmed the findings of a feasibility study carried out by BASE, Oxfam and Convergence for the development of a corresponding remittance-based finance vehicle, which is currently being finalized.
“Remittances play an indispensable role in times of emergency in Tonga”, explains Veronica Corno, Climate Finance Specialist at BASE, before adding: “Leveraging remittances in the upcoming months, and even years, will be central for Tonga to rise and rebuild in a sustainable and resilient manner”.
