Statement delivered by H.E Kilisitina Tuaimei’api, CEO for Ministry of Finance, Tonga
V20 MINISTERIAL DIALOGUE IX
16 October 2022
H.E. Kilisitina Tuaimei’api, CEO for Ministry of Finance, Tonga
Thank you, Chair. Tonga is delighted to join the esteemed V20 Group of Finance Ministers.
As other nations on the frontlines of the climate change of prices we fully recognize the critical role of finance ministries in driving the climate agenda forward, especially on the innovative and scale of climate finance.
On the $100 billion barrier of climate finance goal, we reiterate our call for the timely delivery of the climate finance pledges by development countries for climate action in vulnerable developing countries and the need to table temptation finance by 2025 as well approved in Glasgow last year.
This is critical for implanting now NDC commitments and we have indeed proceeded to articulate our finance needs through our NDC financing pathway. Being a negligible emitter of the climate warming GHG, building resilience to climate change in Tonga is Tonga’s topmost priority. One that we lock in the development gains we have already made as an island nation and ensure our prosperity as Tongans.
To this effect, chair we look forward to a fit for climate financial architecture that considers Tonga in the national challenges in making available current and concessional resources and other innovative financial solutions. In this regard we applaud the work of the V20 and look forward to deepening our engagement in these initiatives.
Chair, increased frequency and intensity of climate induced disasters continues to constrain Tonga’s fiscal space for development. Its loss and damage cost took up 30 percent of our GDP. Left unchecked this will become a vicious cycle and one that needs to be addressed with utmost priority by the MDBs.
There are several V20 proposals like those on debt restructuring, debt payment swaps, and inclusion of hurricane clauses in lending instruments. These are significant proposals. And we wanted to underscore the importance of swift action by MDBs, the IMF, and other financial institutions to consider and implement them. And the time is now.
Chair, we would like to see the V20 become an official group of the World Bank and the IMF to advance and continue to advocate important work on climate finance and development.
Finally, we congratulate the V20 and the G7 on the endorsement of the Global Shield concept note two days ago. The implementation of the Global Shield holds a lot of promise in closing the 98 percent financial protection cap. Therefore, the occasion of the financial resources, especially for the G7 with the implementation of the Global Shield is absolutely key.
Germany’s funding support for climate risk insurance premium is a low-hanging fruit and will support the implantation of the Global Shield, and debt funding must be fully deployed to the Pacific Region by the World Bank.
Equally important is the need to support V20’s loss and damage funding program because the scale and speed of climate change adaptation disbursement remains low in climate vulnerable countries. I thank you, Chair, for the opportunity.