Drowning in debt and rising seas

As the impact of climate change continues to be felt, Pacific Island nations are facing an existential crisis—not only from rising seas and stronger storms but also from the mounting debt required to build resilience against these threats.  

At the recent COP29 climate summit in Azerbaijan, Caritas released a new report exposing how debt and climate impacts are compounding vulnerabilities in nations like Fiji, Samoa, and Tonga. 

This report highlights the staggering reality faced by many Pacific nations.   

"The vicious cycle connecting climate impacts and debt distress is something we've known for a long time," stated Tuvalu's climate minister Maina Talia at the report's launch. "When countries are burdened by debt, they’re forced to spend less on adaptation, making them even more vulnerable to future disasters." 

A crushing debt burden 

The report reveals that each year, Pacific Island nations need approximately USD $1.5 billion for climate adaptation, but they receive only a fraction of this—between USD $200 million and $600 million annually. This funding gap forces countries to make impossible choices between debt and survival. 

In Fiji, where climate debt servicing costs outstrip spending on health and education, the government faces impossible trade-offs that deepen climate vulnerability. Pacific countries are left with limited choices: take on more debt to recover from each cyclone, flood, or drought, or leave communities to bear the full brunt of climate impacts without sufficient adaptation measures.  

"Our Caritas teams have seen the reality on the ground," says Tony Sutorius our Advocacy Lead. "Communities across the Pacific are losing their fresh water to salination, their food sources are dwindling, and their very land is slipping beneath the waves. Yet these same countries, already devastated by climate change, are shackled with debts they can't sustain. We must face the devastating implications of this reality." 

A call to action: Three crucial changes 

The Caritas report outlines three key recommendations to address this twin storm of debt and climate crisis:

1.  Significantly increase climate finance 
   Caritas advocates for a surge in climate finance—at least USD $1.5 billion annually—dedicated specifically to the Pacific. It must also include a separate “loss and damage” fund to help these nations recover from disasters that are becoming increasingly severe. This funding needs to be sustainable and predictable, in line with the discussions at COP29. 

1. Provide grants, not loans 
   Climate finance must come in the form of grants, not loans. Pacific Island nations cannot bear the additional weight of debt without sacrificing essential services. "New Zealand has set an important precedent by providing climate aid solely as grants," said Sutorius, urging other nations to follow suit. He stressed that this model enables moral leadership in addressing climate injustice. 

1. Reform global financial structures 
   Caritas urges international leaders to push for structural changes in the global financial system to support countries facing debt crises. This includes establishing frameworks for debt cancellation, adopting transparent debt assessments, and creating protections against predatory lending practices. These reforms would empower Pacific nations to build resilience without being entrapped by unsustainable debt. 

A shared responsibility  

Caritas stands alongside Pacific communities as they confront both climate and financial challenges. Through partnerships with local churches and organizations, we are committed to amplifying the voices of those most affected. However, the burden of climate resilience cannot fall solely on the shoulders of these nations. It is a shared global responsibility. 

As Cardinal Soane Mafi of Tonga, President of Caritas Oceania, remarked, “climate change and debt poses a threat to our very existence. We must respond with justice, compassion, and urgent action." 

Now, more than ever, we call on our global community to support Caritas’ mission to protect and uplift the most vulnerable. Climate resilience requires collective action and solidarity.  

With the new cyclone season just beginning, fears are high that another round of unprecedented devastation from storms and flooding will strike already vulnerable regions. Caritas is on the ground, helping families and communities fortify their resilience—but we know that sustained and substantial support is urgently needed.