Suva, Fiji, July 25, 2025 – Fiji is advancing efforts to meet its growing demand for sustainable housing through innovative financing strategies, as highlighted in a national workshop held in Fiji. 

The workshop, organized by the Global Green Growth Institute (GGGI) with support from the United Nations Development Programme (UNDP) and hosted at the Housing Authority boardroom in Valelevu, highlighted the urgent need for sustainable capital investment in Fiji’s housing sector. The stakeholders included representatives from the Housing Authority, Ministry of Finance, Strategic Planning, National Development and Statistics, Ministry of Environment and Climate Change, Ministry of Housing & Local Government, Fiji Development Bank, Reserve Bank of Fiji, and Public Rental Board.  

Like many Pacific Island nations, Fiji faces complex challenges in delivering affordable housing that is both secure and climate resilient. Rapid urbanization, rising land and construction costs, and the increasing frequency of climate-related disasters are placing immense pressure on the housing development needs of those in particular – low-income households, informal settlements and vulnerable communities in rural, and maritime areas. 

The International Monetary Fund (IMF) estimates that the Pacific’s climate finance needs are close to US$1 billion annually. However, regional assessments reveal that only around US$2.2 billion has been approved for the Pacific over a 10-year period starting from 2022 – less than a quarter of what is needed each year, with 41% coming from bilateral sources. 

“This stark funding gap underscores the urgency of adopting innovative financing mechanisms. While grant financing remains critical, traditional sources are increasingly constrained. We must therefore explore alternative solutions that attract long-term, sustainable capital aligned with climate and development priorities,” said Mr. Saki Tuisolia, Regional Director Pacific, GGGI. 

One solution discussed was the issuance of thematic bonds – such as green, social, or sustainability-linked bonds – to mobilize capital for Fiji’s housing sector.  

Acting Chief Executive Officer of Housing Authority, Mr. Poasa Verevakabau, emphasized the Authority’s readiness to pursue such opportunities.  

“Thematic bonds are not just financial instruments — they are vehicles of transformation. By integrating them into a structured, sustainable financing framework, we can mobilize long-term capital for affordable, climate-resilient housing projects, ensure transparency and measurable social and environmental impacts, and align with Fiji’s National Development Plan (2025–2029) and National Housing Policy (2025–2029) to create housing solutions that are both future-proof and inclusive,” Mr. Verevakabau said. 

Thematic bonds are not new to Fiji. They were first introduced by Fijian Holdings Limited and later by the Government in 2017 with a total value of FJD 100 million (approximately USD 50 million). While the Housing Authority has previously issued bonds, they have yet to venture into thematic bonds. 

Discussions at the workshop also focused on the different types of thematic bonds: Green Bonds, which fund environmental initiatives such as energy-efficient housing; Social Bonds, which target social outcomes and affordability for low-income households; and Sustainable Bonds, which integrate both environmental and social priorities. 

The deliberations also outlined practical steps for readiness, including conducting feasibility studies, obtaining second-party opinions, understanding investor expectations, and deciding between private and public bond placements. GGGI and UNDP have pledged continued support in advancing this agenda and turning these discussions into actionable commitments. 

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GGGI Pacific| Kelly Vacala, Regional Communications & Knowledge Sharing Lead |kelly.vacala@gggi.org