The Green Climate Fund (GCF) has committed US$15 million towards establishing a US$60 million investment fund designed to support locally owned Pacific businesses engaged in climate adaptation, environmental protection and sustainable economic development.
The Matanataki Pacific Fund 1 will target approximately 15 to 20 small businesses and community-owned cooperatives operating in Tonga, Vanuatu and Fiji, with investments focused on activities that strengthen climate resilience and protect marine and terrestrial ecosystems.
Priority industries include waste management, recycling, regenerative agriculture, sustainable fisheries and low-impact tourism.
The investment is intended to address a persistent financing gap facing Pacific enterprises developing commercial solutions to climate change.
GCF Regional Director for Asia and the Pacific Hemant Mandal said the organisation’s US$15 million commitment would serve as anchor capital, helping attract additional investors to the proposed US$60 million fund.
He said the initiative would demonstrate how blended finance could support locally owned enterprises while creating economic opportunities and strengthening community resilience.
The fund is expected to contribute towards protecting or restoring more than 50,000 hectares of terrestrial and marine ecosystems.
Unlike conventional grant-funded development programmes, Matanataki Pacific Fund 1 will provide patient equity and quasi-equity financing, giving businesses access to longer-term capital suited to their operating conditions.
A donor-funded technical assistance facility will help enterprises prepare for investment, improve management practices and strengthen their commercial operations.
The initiative will also encourage links between businesses across different sectors, helping develop local supply chains and increase the economic benefits of environmental investment.
Women’s economic participation will be a central objective, with women expected to participate as business owners, beneficiaries and decision-makers.
Pacific businesses seeking to develop climate-related products and services frequently encounter barriers to financing because of their small scale, limited investment opportunities and perceived commercial risks.
The fund seeks to overcome these constraints through an investment model that supports local ownership and enables businesses to retain a greater share of the wealth they create.
For Tonga and Vanuatu, the programme could open opportunities for enterprises working in sustainable tourism, agriculture, fisheries and environmental services, while demonstrating how climate adaptation can attract commercial investment.
