Direct Financing for Communities and Businesses to Respond to Climate Change in the Cook Islands

The project seeks USD 39,982,375 in GCF grants to enhance the climate resilience of the Cook Islands' building stock, specifically targeting Category 3 tropical cyclone compliance. It employs a programmatic approach through an EDA Facility that provides tiered financing—ranging from 100% grants for the most vulnerable to partially reimbursable grants for businesses—to upgrade approximately 50% of non-compliant dwellings. The initiative includes capacity building for tradespeople and inspectors, the installation of community and household water tanks, and the upgrade of septic systems to protect coral reef ecosystems. Implementation is led by the Ministry of Finance and Economic Management (MFEM), Climate Change Cook Islands (CCCI), and the Bank of the Cook Islands (BCI).

• The Cook Islands suffers significant economic losses from tropical cyclones, averaging US$5 million per year, which represents 2% of its GDP, with 90% of these losses occurring in the building sector.
• The project aims to bring approximately 50% of the non-compliant building stock into compliance with the 2019 Building Code, targeting 2,150 private building upgrades, 23 public buildings, 31 community water tanks, and 329 household water tanks.
• The EDA Facility utilizes a three-tier financing mechanism for private buildings: Tier 1 provides 100% grants for vulnerable individuals; Tier 2 requires 20% reimbursement for individuals or MSEs in the Pa Enua; and Tier 3 requires 40% reimbursement for those on Rarotonga and Aitutaki.
• A revolving fund mechanism is integrated into the facility, where reimbursed proceeds from Tiers 2 and 3 are reinvested to sustain access to concessional finance beyond the initial GCF investment.
• The project addresses critical water security issues, particularly on atoll islands, by installing rainwater harvesting systems to mitigate seasonal shortages and saltwater intrusion caused by sea level rise.
• To overcome technical barriers, the project will provide certification and training for tradespeople and inspectors through the Cook Islands Tertiary Training Institute (CITTI) to ensure correct application of the 2019 Building Code.
• The project is expected to reach 8,848 direct beneficiaries and 5,905 indirect beneficiaries, with a specific focus on gender equity, including a target of 50% female representation in EDA decision-making structures.
• A cost-benefit analysis indicates the project is economically viable, with a positive net present value (NPV) of USD 17.6 million over a 20-year useful life, based on avoided losses of lives, injuries, and assets.
• The project employs a centralized procurement system for goods and services to achieve economies of scale and ensure materials meet national standards across all inhabited islands.

APA

Green Climate Fund (2025). Direct Financing for Communities and Businesses to Respond to Climate Change in the Cook Islands. https://www.greenclimate.fund/sites/default/files/document/fp281.pdf

Chicago

Green Climate Fund. Direct Financing for Communities and Businesses to Respond to Climate Change in the Cook Islands. 2025. https://www.greenclimate.fund/sites/default/files/document/fp281.pdf.

Wikipedia

{{cite report |author=Green Climate Fund |title=Direct Financing for Communities and Businesses to Respond to Climate Change in the Cook Islands |date=18 November 2025 |url=https://www.greenclimate.fund/sites/default/files/document/fp281.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greenclimatefund2025direct, author = {{Green Climate Fund}}, title = {{Direct Financing for Communities and Businesses to Respond to Climate Change in the Cook Islands}}, institution = {Green Climate Fund}, year = {2025}, month = nov, url = {https://www.greenclimate.fund/sites/default/files/document/fp281.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }