## Climate Finance and Adaptation Needs In Pacific Island Countries

_IMF Working Papers, April 24, 2026_

## Source details

**Canonical URL:** [Climate Finance and Adaptation Needs In Pacific Island Countries](https://www.imf.org/en/publications/wp/issues/2026/04/23/climate-finance-and-adaptation-needs-in-pacific-island-countries-575342)

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## Bibliographic details
- Authors: Fabien Gonguet, Xuehui Han, Choonsung Lim, To-Nhu Dao, Saraf Nawar
- Published: April 24, 2026
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798229043175.001

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### Overview and authorship
- Title: Climate Finance and Adaptation Needs In Pacific Island Countries
- Authors: Fabien Gonguet, Xuehui Han, Choonsung Lim, To-Nhu Dao, Saraf Nawar
- Publication: IMF Working Papers
- Date: April 24, 2026
- Pages: 38
- Volume: 2026
- Issue: 083
- Series: Working Paper No. 2026/083
- DOI: https://doi.org/10.5089/9798229043175.001
- Stock No: WPIEA2026083
- ISBN: 9798229043175
- ISSN: 1018-5941

### Research objective and scope
- Develop a unified framework to produce the first region-wide, internally consistent estimates of climate adaptation financing needs for Pacific Island Countries (PICs).
- Harmonize country-level assessments into comparable annual measures via a metadata analysis.
- Generate synthetic estimates for data-deficient countries using a complementary machine-learning approach with economic, geographic, and climate-vulnerability indicators.
- Account for differences in sectoral definitions and coverage embedded in the underlying source studies.

### Key findings
- Adaptation needs are large and highly uneven across countries.
- Adaptation needs are exceptionally high relative to GDP, particularly for atoll nations where physical risks dominate.
- Current financing levels fall well short of projected adaptation needs.
- Disbursement ratios vary substantially across financing channels, reflecting differences in institutional capacity and project implementation.
- Taken together, the findings highlight substantial adaptation financing gaps in PICs and underscore the importance of strengthening institutional capacity and improving the effectiveness and accessibility of climate finance mechanisms.

### Methodology
- Metadata analysis harmonizes country-level assessments into comparable annual measures.
- Complementary machine-learning approach generates synthetic estimates for data-deficient countries using economic, geographic, and climate-vulnerability indicators.
- Estimates are subject to differences in sectoral definitions and coverage embedded in the underlying source studies.

### Analysis of climate adaptation finance flows
- Examines climate adaptation finance flows to PICs over the past decade.
- Distinguishes between commitments and estimated disbursements.
- Finds that disbursement ratios vary substantially across financing channels.

### Policy implications and recommendations
- Strengthen institutional capacity in PICs to improve project implementation and increase disbursement effectiveness.
- Improve the effectiveness and accessibility of climate finance mechanisms to better meet projected adaptation needs.
- Address uneven distribution of needs, with particular attention to atoll nations facing exceptionally high adaptation burdens relative to GDP.

_This summary is based on "Climate Finance and Adaptation Needs In Pacific Island Countries", IMF Working Papers 2026, 083 (2026) by Fabien Gonguet, Xuehui Han, Choonsung Lim, To-Nhu Dao, and Saraf Nawar._

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_Source: https://www.imf.org/en/publications/wp/issues/2026/04/23/climate-finance-and-adaptation-needs-in-pacific-island-countries-575342_