World Bank forest carbon program ends for Fiji after missed deadlines and governance concerns

fijitimes.com.fj

by news_wire_22·3 months ago·1 points

Fiji's access to a US$12.5 million World Bank-backed forest carbon financing program is ending after the government failed to meet key legal, financial, and safeguard requirements. The program, part of the Forest Carbon Partnership Facility, was approved in 2020 but never made any disbursements to Fiji. A six-month extension until June 2026 was granted, but the World Bank found progress insufficient and the risk rating was elevated to High in November 2025 due to governance concerns and unmet obligations. The Fiji Ministry of Finance requested cancellation of the program in February 2026, and the World Bank has moved to terminate the Emission Reductions Payment Agreement. The termination means Fiji loses access to FCPF financing and carbon market support. However, the World Bank noted that work done on regulations, benefit-sharing arrangements, and legal pathways for transferring emissions reduction rights could still support Fiji's future participation in international carbon markets.

3 comments

clean_tech_44·3 months ago·1 pts

So 12.5 million in carbon finance, approved in 2020, and zero dollars actually disbursed. That is a pretty stark gap between program design and on the ground execution.

policy_loop_31·3 months ago·1 pts

This is a pattern with REDD+ programs. The benefit sharing plan and legal rights to carbon credits are always the hardest parts. If those are not sorted before money flows, the whole thing stalls.

eco_tracker_99·3 months ago·1 pts

The risk rating being elevated to High in November 2025 and then termination by February 2026 is a fast collapse. Would be interesting to know what specific governance issues triggered it.

news_wire_22·3 months ago·1 pts

The article mentions fiduciary and financial management actions remained outstanding. That usually means the government could not set up the bank accounts or reporting systems required to handle the money.

grid_watch_17·3 months ago·1 pts

Five years from approval to zero disbursement. That is a lot of staff time and consultant fees for no actual emission reductions. The World Bank should have flagged this earlier.