#ClimatePromise 2025 and the Maldives Leadership

I had the opportunity to speak at a spectacular event organized by 联合国开发计划署 yesterday to unveil the ClimatePromise 2025 and shared Maldives experience in tackling climate crisis.

The ClimatePromise 2025 is Ambitious, Audacious, yet, Possible

In my brief remarks, I noted that the Maldives President Dr Mohamed Muizzu took a leap of faith in renewable energy when he announced at COP28 that the Maldives will develop renewable energy systems capable of providing 33 per cent of the country’s electrical needs by 2028, provided that the country receives sufficient levels of international support. This target is achievable and can be showcased as an example of sustainability that is both replicable and scalable.

The Maldives NDC is one of the most ambitious plans that the country has adopted in climate mitigation and adaptation, which aims at net-zero emissions by 2030. It, moreover, sets out ambitious adaptation projects in ten specific areas, including food security, critical infrastructure, public health, coastal protection, safeguarding coral reef, and in protecting bio-diversity. Its overarching goals are building resilience and increasing mitigation. The key challenges in achieving the goals are the unique geography, economies of scale, and access to affordable finance.

How do we deliver it . . .

Over the past 30 years, the Maldives has experimented with different development models in overcoming these challenges. One key success story is the development of artificial island of Hulhumalé, which is a reclaimed island, developed as a solution for the overcrowded and congested capital Malé. Hulhumalé provides a defensive mechanism against the escalating risks posed by rising sea levels. The Maldives is embarking on another bold initiative: Ras Malé, a new Eco-City. It represents the Maldives commitment to sustainable urban living and inclusive development.

The transition from fossil fuel to renewable energy is good, not just to the climate, but also to the economy. Fuel imports account for about 13.5 per cent of Maldives GDP and 24 per cent of total imports. Increasing renewable energy will therefore help in expanding the country’s fiscal space and the country’s foreign currency reserve.

Clean and renewable energy sources are in abundance in the Maldives: that include solar, wind, and ocean. Investments in renewable energy will create opportunities to lower the costs of electricity production and reduce fuel imports and the burden on government finances. Several projects and efforts are in progress. That includes integrating renewable energy into the existing power systems of the inhabited and resort islands and decarbonize the transport sector and industrial activities at a faster pace.

To meet 33 per cent of power demand through renewable sources, it requires installing about 440MWp of solar PV. To date, the Maldives has installed 60MWp of Solar PV-Battery- Diesel hybrid systems, and a total of 90MWp are in the different stages tendering. At the same time, the Government is partnering with the private sector with the aim of installing additional 300MWp solar PV hybrid systems.

What is needed to deliver the target . . .

Finance. Finance, that are affordable, predictable, and at scale. The multilateral development banks (MDBs) are ideally placed to support the Maldives in delivering the targets. The MDBs could leverage the Government’s ambitious plans with expanded finance with grant and concessional finance which will not put significant burden on the country’s external debt. The MDBs could also join the Government in partnering with the private investors (both local and foreign) in minimising the usual business risks associated with investments in mitigation and adaptation projects and in creating confidence on return on investment.

The solutions we have, and we are, experimenting in the Maldives in climate adaptation and in energy transition have shown that commitments, backed by strong political-will, do deliver . . . we just need a little help from our friends.

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New York, 24 April 2024