This case study explores the challenges faced by developing countries in the face of the climate crisis and unsustainable debt, as well as the critical importance of integrating adaptation and disaster risk reduction into national planning and development strategies. Fiji’s proactive and multifaceted approach to climate finance and resilience building offers valuable insights for other nations facing similar climate vulnerabilities,including small island developing states (SIDS).

Fiji's pioneering use of financial instruments such as green and blue bonds,the CROC Trust Fund, and risk transfer mechanisms highlights the country’s commitment to mobilizing resources for climate resilience and sustainable development. These financial mechanisms have enabled Fiji to fund green and blue projects by attracting and encouraging environmentally conscious investors while ensuring timely disaster response and recovery. Its robust regulatory and legal frameworks are exemplified by the Climate Change Act and the CROC Trust Fund Act, being pivotal in operationalising national responses to climate change, and ensuring transparency, accountability, and effective coordination among stakeholders.

Fiji’s comprehensive approach to climate finance and sovereign debt management provides learnings, including on the successful integration of robust regulatory frameworks, evidence-based design, accountability, and community engagement.

‍