Simon Watts to Attend Ministerial on Climate Action in China

The World Bank’s Board of Executive Directors has approved new support to strengthen fiscal management and enhance disaster and climate resilience in the Republic of the Marshall Islands (RMI). RMI faces substantial long-term uncertainty due to climate change, population decline, and a limited private sector, and critical reforms are needed to ensure long-term economic sustainability. With US$21 million in grants, the Enhancing Fiscal Management and Building Disaster and Climate Resilience Development Policy Operation (DPO) aims to support these reforms and contribute to the country’s sustainable and resilient development. “This is the first operation of its type in the Republic of the Marshall Islands and it comes at a critical time to support the country’s resilience and sustainable development,” said World Bank Resident Representative for the North Pacific Omar Lyasse. “It complements other World Bank-financed projects in the Marshall Islands on fiscal management, urban resilience, and climate adaptation, and supports a robust policy framework to meet the country’s national development goals and international commitments.” A low-lying atoll nation, RMI is one of the world’s most climate-vulnerable countries, facing threats that exacerbate disaster risks and undermine poverty reduction and economic growth. This operation will support policy actions to manage the impacts of climate change and natural hazards while providing access to prompt financing for catastrophic events. The operation includes a US$9 million development policy grant and a US$12 million Catastrophe Deferred Drawdown Option (Cat DDO) development policy grant, which will be available for post-disaster efforts if an eligible catastrophic event occurs. This ensures that the country can quickly mobilize financing in response to emergencies such as typhoons, floods, droughts, and other climate-related hazards, as well as health-related emergencies. The operation also aims to establish robust financial management and procurement processes to improve spending efficiency and enhance governance and administration in the country. The operation will support critical reforms for the country, including adapting to sea level rise, implementing a modernized Disaster Risk Management Act– updated for the first time in over 35 years—and enacting new legislation to regulate the country’s first national building code. These reforms will enhance RMI’s resilience to natural and climate-related hazards and guide the design of future development initiatives in the country. The operation aligns with the Republic of the Marshall Islands National Strategic Plan 2020-30, emphasizing government accountability and efficient resource allocation. It also supports RMI’s Paris Agreement climate commitments through policy actions aligned with the implementation of RMI's Climate Change Policy 2050, its Nationally Determined Contributions, and its National Adaptation Plan. “This support will help our government address critical needs across a range of priorities, including climate and disaster resilience,” said Minister of Finance for the Republic of the Marshall Islands, the Hon. David Paul. "Climate change poses an existential threat to the RMI, but this initiative is an important step to create a safer and more resilient future for Marshallese people.”

New Zealand's Climate Change Minister, Simon Watts, will travel to China on Saturday to participate in the Ministerial on Climate Action meeting in Wuhan.

“Attending the Ministerial on Climate Action is an opportunity to advocate for New Zealand's climate priorities and engage with our key partners on climate action,” Mr. Watts stated.

This marks the first time a New Zealand Minister will attend the meeting in person. Mr. Watts expressed anticipation for discussions on reducing climate change impacts and building strong relationships with international counterparts ahead of COP29 in November.

The meeting will bring together representatives from over 30 countries, including the COP Presidency, Ministers, and Chairs of key party groupings in the United Nations climate negotiations.

During his visit to China, Mr. Watts will also travel to Shanghai to meet with New Zealand businesses operating in the market, including members of the New Zealand Business Roundtable in China (NZBRIC).

“Sustainability has long been part of New Zealand’s value proposition, and the Government is committed to supporting our exporters to compete on the world stage, including in the Chinese market,” Mr. Watts said.

“I’m looking forward to hearing firsthand how New Zealand businesses are leading the way on sustainability solutions and innovating their products to meet future challenges."

Mr. Watts emphasized the importance of China as a global partner in addressing climate change and reaffirmed New Zealand’s commitment to strengthening cooperation with China in this area.

The Minister will depart New Zealand on Saturday, July 20, and return on Wednesday, July 24.