In his opening remarks Mr. Gerd Trogemann (UNDP BRH) emphasized that the green transformation processes of this magnitude and complexity need all of governments and all of society support and engagement as they go well beyond the energy sector itself. Public and private finance and investments at large scale are needed to advance clean energy development, just transitions, and equitable access to green solutions. National energy funds, blended finance facilities, public private partnerships which can be used to de-risk investment especially in rural and underserved areas are critical. Given the predominance of SMEs in the blue and green economies, it is particularly important to identify how to promote access to affordable finance for them through better policies, regulation, and various financial instruments. Without these, many of the important investments that are being catalyzed through the actions of partners will not take root and will not be sustained.

Mr. Howard Politini (Pacific Islands Private Sector Organization) in his remarks underlined the serious challenges in the Pacific region such as high cost of transportation, small scale of economies, and risks related to high level of vulnerability of the region to natural disasters. Nevertheless, a private sector in the Pacific is thriving with its own dynamics. For private sector to be successful it is important to have effective leadership, innovation, and stakeholder inclusivity. For governments to have a responsibility to support marketplace values and strengthen economies by brand recognition of local products and services. Therefore, knowledge sharing and best practices for market standards and sustainability are important. He is witnessing positive trends of growing participation and interest of private sector in renewable energy in constructing solar farms and biomass-based energy in the region.

The panel discussions covered various challenges faced by the Pacific region, including geographic constraints, high capital costs, dependence on imports, and the need for strategic stakeholder engagement. Panelists highlighted the role of the private sector in green energy development, the importance of knowledge sharing, and the need for strategic stakeholder engagement.

Mr. Georgewin Garae (National Green Energy Fund, Vanuatu) shared information on activities of NGEF. The fund managed to mobilize $4.3 million from the Government of Vanuatu, and so far, it has funded the implementation of 150 projects in constructing stand-alone solar PVs, solar water pumps, and streetlights. The fund, with the support of international development agencies, is providing financial products such as concessional loans and grants to entrepreneurs, public institutions, and individual households. The participation of commercial banks in RE sector remains very low due to the high costs and risks in project implementation, which makes banks’ interest rates high. NGEF is negotiating with few commercial banks to bring down interest rates below 10% to boost green entrepreneurship.

Ms. Priscilla Kevin (Pacific First Investor Network-PFIN) explained how the network is supporting acceleration of green entrepreneurship in the Pacific countries focusing on agriculture, STEM and ICT, and women-led enterprises with an UN SDG focus, as well as introducing angel investor concept to the Pacific. She highlighted five lessons learned from her experience working in the Pacific region relating to SMEs acceleration and development – (i) better policies in creating business enabling environment in the Pacific should be enhanced, (ii) making available incubation, accelerator and co-working facilities with access to electricity and internet is important for small businesses to grow, (iii) developing financial, business and digital ICT literacy is essential, (iv) diversifying and improving access to finance and markets for small businesses to be continued and (v) sharing knowledge, tools, best practices, evidence-based solutions are important in the region.
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Mr. Anthony Koiri (Autonomous Bougainville Government, PNG) focused on leveraging unique status, policy work, and attracting private sector investments in his region. He informed that most of the funding in developing renewable energy is provided by the government and donor agencies. In 2018 during the APEC Summit in Port Moresby, governments of Japan, Australia, and New Zealand agreed to provide $1.5 billion to improve rural electrification in PNG. Currently most of the private investments in Bougainville are concentrated in mining sector. However, the new vision is to make those investors to contribute to the development of renewables such as solar and wind power. Bougainville region has large capacity to generate geothermal energy, which needs to be explored further. In general, attraction of any private investment depends on the economic growth and political stability of the region.

Ms. Julinette Bayking (USAID-Papua New Guinea Electrification Partnership) presented that despite PNG’s on-grid and off-grid sectors represent investment opportunities worth to $4 billion, the county is still facing challenges such as lack of effective policy and regulatory frameworks, financing and funding issues, and poor infrastructure. The USAID-PEP is providing technical assistance to address those challenges by supporting the PNG’s electricity generating and regulating authorities, developing off-grid electrification, and catalyzing private investment in the renewable sector. She shared interesting examples of their work in establishing catalytic fund to provide co-financing opportunities for private sector; working with local financial institutions like women-focused microfinance provider to enhance their ability to provide better designed loans; promoting public-private partnerships (PPP) bringing together local governments and private sector to jointly implement projects; and supporting business networking for local entrepreneurs.

From the academia’s perspective, Dr. Dharish David (Singapore Institute of Management) highlighted that the PPP's are important as many developing countries cannot easily mobilize public funds necessary for green transition, while private sector needs profit making opportunities. He noted that global trends indicate a growing number of PPPs in the energy sector, with renewable energy steadily increasing its share, particularly over the past decade. Although coal-based PPPs have traditionally dominated the ASEAN region's energy sector, declining technology costs are creating more opportunities in clean energy. Notably, solar, wind, and geothermal energy have gained prominence in South and Southeast Asia over the 5 years, with potential expansion to the Pacific. The experiences of island nations like the Philippines and Indonesia, especially Indonesia’s “1,000 Islands – Renewable Energy for Electrification Programme” (REEP), could provide valuable insights for the Pacific region. Green energy PPP projects are already being actively implemented in the Pacific, focusing on solar and wind energy.
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Mr. Jose Manuel Soares de Araujo (Directorate-General for Electricity, Water, and Sanitation Regulation, Timor-Leste) informed that the country’s energy production is remaining fossil fuel based. However, under the National Strategic Development Plan for 2011-2030 the government is planning to reach the renewable energy production to 450 megawatts using solar, wind, hydro, and biomass power. He pointed out to ongoing challenges that the country is facing, which include high dependency on imported diesel that makes the cost of electricity very high; poor transmission and distribution quality that causes energy losses; lack of renewable energy projects due to absence of legal framework and country’s capacity assessment in renewable energy; and lastly weak energy efficiency monitoring. Currently his organization is finalizing the Renewable Energy Decree Law to be submitted to the Government. The adoption of legal framework in renewable energy will create clarity for potential investor to effectively participate in clean energy sector projects.
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Mr. Naoki Takanashi (Kaihatsu Management Consulting) shared his experience working in the Pacific countries. He said that there were big opportunities for introducing new technologies in renewable energy sector in the Pacific. Although the region has own limitations such as small size, geographic remoteness and isolation, and proneness to natural calamities, there are available technologies for renewable energy development including hydro (pico-hydro power generation), wind (vertical axis turbines), and biomass (converting the waste to energy). He also shared an interesting case of the project in Vanuatu – a service by Toshiba providing solar-charged electrical products to remote areas with no access to electricity that can reduce capital investment costs and environmental impact. This project was a success, and it is in the process of expansion to other regions of Vanuatu and the Pacific.
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In his closing remarks, Mr. Riad Meddeb (UNDP Sustainable Energy Hub) emphasized the fact that despite the progress towards universal energy access, the region accounts for over half of global energy consumption, with 85% coming from fossil fuels. CO2 emissions have risen by 142% in the past 20 years, driven by rapid urbanization and industrialization. However, green investment and finance present opportunities for transitioning to clean energy, with global investment expected to exceed $3 trillion by 2024. Developing countries, excluding China, only account for 15% of clean energy spending, highlighting the need to capitalize on financial and energy market opportunities. Tailored solutions, collaboration, innovative financing, and digital technologies can expedite sustainable energy development, drawing lessons from Pacific Island countries. Through South-South and triangular cooperation, we can play a crucial role in facilitating knowledge exchange and regional collaboration among Pacific Island countries and other developing nations in the Asia Pacific.