World Bank Grants US$7 Million to Strengthen Tuvalu’s Climate Resilience and Disaster Preparedness

According to the World Bank Group’s 2024 Pacific Atoll Countries Climate and Development Report, climate-related disasters result in economic losses equating to nearly 7% of Tuvalu’s GDP annually.

The World Bank has announced a new commitment of US$7 million in grant funding to enhance Tuvalu’s financial management and resilience against climate-related disasters. This funding, provided under the Tuvalu Second Climate and Disaster Resilience Development Policy Financing initiative, is the second installment in a series aimed at reducing climate vulnerabilities and bolstering disaster preparedness measures in the Pacific island nation.

Tuvalu: A Nation on the Frontlines of Climate Change

Tuvalu, a low-lying atoll country, is among the most vulnerable nations to climate change. Rising sea levels, frequent cyclones, prolonged droughts, and other extreme weather events pose serious risks to its economy and infrastructure. According to the World Bank Group’s 2024 Pacific Atoll Countries Climate and Development Report, climate-related disasters result in economic losses equating to nearly 7% of Tuvalu’s GDP annually. These disruptions severely impact budget planning and limit the government’s capacity to maintain essential public services.

Strengthening Financial Management and Infrastructure Resilience

“Strengthening our ability to better manage, account for, report on, and allocate funding for disaster response and climate change adaptation is critical for Tuvalu,” said Hon. Panapasi Nelesone, Tuvalu’s Deputy Prime Minister and Minister of Finance and Economic Development. “This grant financing will assist the government of Tuvalu in improving financial management while strengthening climate-resilient infrastructure.”

The World Bank’s grant will support several critical initiatives, including:

• Enhanced Climate Financing Oversight: Strengthening government systems for assessing, monitoring, and reporting on climate-related funding.
• Increased Disaster Response Funds: Implementing policy reforms that allocate more financial resources for disaster relief and recovery efforts.
• Improved Emergency Logistics: Ensuring emergency supplies can be delivered more efficiently during natural disasters.
• Resilient Infrastructure Standards: Enhancing regulations to ensure buildings and infrastructure can withstand extreme weather events.
• Strengthened Emergency Systems: Upgrading disaster preparedness mechanisms to improve response times and community resilience.

A Collaborative Effort for Sustainable Development

Stefano Mocci, World Bank Country Manager for the South Pacific, emphasized the importance of this initiative in securing Tuvalu’s economic future. “Supporting Tuvalu’s climate resilience and strengthening institutional capacity is critical for Tuvalu’s economic stability and growth. The World Bank remains committed to development initiatives such as this grant support, which aligns with Tuvalu’s National Strategy for Sustainable Development 2021–2030.”

This grant is part of a broader, coordinated budget support framework under the Government’s Policy Reform Matrix. Development partners, including the Asian Development Bank, the governments of Australia and New Zealand, and the European Union, are actively supporting these resilience-building efforts to ensure Tuvalu’s sustainable development and long-term climate adaptation.