With the growth of sustainable financing around the world, countries are looking at innovative ways to fund environmental adaption and conservation projects.
Yesterday Deputy Governor of the Reserve Bank of Fiji Esala Masitabua indicated that they have been holding discussions about ‘blue bond’ initiatives.
“This is around the oceans – the discussions the RBF has been a part of, in terms of transportation, inter-island transportation that uses less fuel and relying more on wind energy.”
Around the world, blue bonds are another emerging theme alongside green bonds.
In October last year, Fiji became the first emerging market to issue a sovereign green bond, raising $100 million to support climate change mitigation and adaption.
The RBF was an integral player in launching the green bonds.
“It makes sure that we start to measure the impact of these investments/spending that Government does on the environment,” said Mr Masitabua.
While giving an overview of how the Fijian economy is tracking, Mr Masitabua said Fiji continues to enjoy consecutive years of growth
He said sectors like Gold have declined but they are hopeful that it would bounce back and perform strongly like they used to.
However, sectors like Timber and Fish have performed strongly.
Mr Masitabua told participants attending the 15th Fiji National Transport Consultative Forum that the forecast for 2019 is an increase in all sectors in terms of contribution to Gross Domestic Product.
“It is what it is, the economy has been growing constantly. If the economy contracts then things will be a bit more dire,” said Mr Masitabua.
Like other countries in the world, Mr Masitabua said that as the Fijian economy grows strongly, inequality has to diverge. Investment has slowed down as a result of the November 14 General Election.
“It’s the same everywhere, where people hedge at the margins and these weigh on investments. The balance of where people’s sentiments lies are sometimes reflected in these indicators.”
He said that while Fiji was spending more than what we are borrowing, most of the spend is towards capital expenditure – targeted at creating more economic growth for the future.
Source: Fiji Sun