Exclusive: Tonga’s prime minister on investing in climate adaptation

Few countries are as vulnerable to climate change as the Kingdom of Tonga. The Pacific island nation comprises roughly 170 islands, of which 36 are inhabited by just over 100,000 people. Most of whom, live along the coastlines.

Tonga faces severe near-term risks from rising sea levels, extreme weather and changing rainfall patterns. For Tonga’s communities and infrastructure, the risk of coastal submergence is among the highest in the world.

In response, the government has set out a plan to redesign infrastructure, enhance disaster response and invest in climate resilience. Tonga is, therefore, a country at the forefront of climate adaptation.

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In this interview with Net Zero Investor, Tonga’s Prime Minister Lord Fakafanua – elected to office in December 2025 – shares his views on climate resilience and investing in climate adaptation.

Your political journey began at a young age. A member of parliament at 24 years of age. At one point, the youngest speaker in the world. At 40, you are now one of the youngest prime ministers in the world. As a young leader of a Pacific island country, how has climate change shaped your political journey?

Climate change is not a new phenomenon. It’s something I grew up around and has had scientific consensus since the 1980s. Being a small island developing state, we are at the forefront of the effects of climate change. So it was really a no-brainer for development plans and proposals for the future that we ensure we are still around.

Adapting to climate change and mitigating climate change has rightfully been adopted by Pacific island countries as our premier security challenge.

Investors often speak about the urgency and necessity of investing in climate adaptation. What does adaptation mean to you and your vision for Tonga?

The response to climate change is two pronged. There’s mitigation and there’s adaptation. Mitigation is where a lot of investment in happening right now.

Adaptation is a lot more difficult. It is about learning to live with the changing climate and new weather conditions. That means we have to build sea walls or relocate people, which are both very expensive. It also means looking at nature-based solutions – replanting mangrove forests or trees – and investing in food technology so that crops are more resilient.

In order to prepare our people for climate change, we also need to have resilient infrastructure. That means relocating to higher locations and having building codes that can weather intense tropical cyclones. That is something our economy is already burdened with heavily given that infrastructure through to 2030 is at a $1.4bn deficit.

Tonga’s climate change policy lists resilience as a goal to be achieved by 2035. As part of those efforts, what is the significance of the Tonga Sustainable Economic Corridors and Urban Resilience Project which focuses on connectivity and emergency response? [the World Bank has approved $40m in grant financing for the project. The ADB and the Tongan government are contributing $80m and $25m respectively]

It really helps empower the whole theme of resilience through flood, drainage and water supply systems. It sounds boring but these are really the brick and mortar foundations of Tonga’s economic empowering.

Part of it is a large investment in a bridge. The bridge will help ensure urban migration is supported. It will cut commute time from town to the airport in half, so it adds efficiency to how much petroleum we’re consuming. The bridge also enables us to evacuate more efficiently in the event of a tsunami.

In terms of investing in climate adaptation, what would you say are the biggest challenges for Tonga and the wider Pacific Islands region?

Part of the challenge we’re facing is to ensure that Tonga has an investment market and an economy conducive for growth. We need to develop our back offices.

We have to have necessary regulations, backstops and investment protections in place. It is also important to recognise that we have a unique land tenure system that protects the rights of the Tongan people. For some investors that might be unwieldly to understand but we do have leases available for investors. You can lease up to 99 years and as an investment vehicle that should be sufficient to alleviate a lot of concerns. 

We are speaking at a time when the world is facing its second fossil fuel price shock within the span of a few years. Do you see the energy transition as a way of building energy security for Tonga?

Absolutely. Decarbonising and insulating ourselves from external shocks is part and parcel of our energy ambitions. It’s not only good for the climate, but also for the economy.

From renewable energy, we’ll be able to desalinate water, enable more industries, more tourism, larger hotels, small manufacturing and also data centres. If renewable energy is at a competitive price, AI data centres could be set up in Tonga. In enabling fronter markets and new technologies, we are technology agnostic. As long as we have enough baseload power to substitute diesel generation in Tonga, we can sprinkle our energy mix with renewable energy on top of that.

For institutional investors, adaptation and resilience are becoming immediate concerns. As a leader at the forefront of climate risk, do you have a message for these investors?

Look beyond the obvious. A lot of investors will see Tonga as an exotic and small market. I think you need to look at this from an impact perspective. Whether the investment is at $100m or $500m or a billion, the impact you’re realising at that level is quite high. Our government has been around for five months now and we’re looking to open Tonga up for institutional investment.

If you want to make a difference, Tonga will welcome your investment.

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