At the 26th United Nations Climate Change Conference of the Parties (COP26), Small Island Developing States (SIDS) emphasised the crucial importance of using renewable energy investments as a policy mechanism to cope with climate change, both in mitigation and adaptation. Solutions will inevitably have to be innovative and tailored to reflect SIDS’ varying geographies, cultures, political systems and economic structures.

The mobilisation of funds and the streamlining of processes to obtain these funds are direct responses to these needs. SIDS will continue to advocate for energy transition priorities in all global forums, maintaining continuous dialogue and engagement with investors and the private sector.

SIDS and development partners have identified the points below as urgent areas of intervention to support the energy transformation in SIDS: 

• Build capacity in local SIDS financing institutions to assess risk and identify funding of bankable projects, as well as strengthen SIDS capacity in the monitoring and evaluation of funds and increase project bankability.

• Encourage the bundling of projects, when applicable, to increase their scale and appetite for investments.

• Differentiate and customise approaches to access financing dependent on the SIDS’ economy size and project scale.

• Reduce bureaucratic procedures and red tape to access finance and investment.