Infrastructure budget sets stage for climate-ready future

The 2025-26 Budget signals a growing alignment between Fiji’s infrastructure priorities and its climate responsibilities. From water and transport to energy and finance, the government is investing in the systems that will underpin a more secure and sustainable future.

The Budget takes an assertive step toward improving infrastructure and resilience, with more than FJD926 million allocated to capital projects across transport, energy, water, and housing. At its core, the budget reflects a long-standing national goal: to build a modern Fiji that is both economically vibrant and climate-secure.

With a deepening awareness of the country’s vulnerability to natural disasters, rising seas and extreme weather, the government has outlined priorities that are not only about fixing what is broken, but future-proofing what will be built. There is more work to be done, but the direction of travel is clear; and the intention to align economic growth with environmental sustainability is stronger than ever.

Infrastructure renewal gathers pace

One of the headline items in this year’s budget is the record FJD284 million allocated to the Water Authority of Fiji. This funding is intended to address ageing infrastructure and erratic service in several urban and peri-urban areas, including Suva and Nausori, where water rationing has become a familiar inconvenience. The investment aims to replace old mains, improve treatment capacity, and better manage pressure throughout the network.

Likewise, the Fiji Roads Authority receives over FJD416 million, including funding for the rehabilitation of rural and urban road networks, key bridges, and a feasibility study for a long-discussed Suva–Nausori flyover. The scale of the need is well known, but this renewed commitment offers a platform for longer-term planning. In time, this could pave the way for integrated mobility solutions and smart infrastructure that reduces congestion and improves connectivity across Fiji’s growing urban centres.

Successful implementation of these allocations, however, will depend on strengthening delivery systems –from procurement and project oversight to inter-agency coordination. Ensuring that capacity keeps pace with ambition will be essential in translating budgets into results.

Clean energy and community access

Energy security is another pillar of the government’s infrastructure programme. The budget commits approximately FJD65 million toward energy development, focused on grid extension, rural electrification, and investment in renewable energy. Projects like the proposed Wailoa downstream hydropower initiative and solar-based systems for remote communities align with Fiji’s commitment to achieving net-zero emissions by 2050.

While challenges remain (particularly in reaching the roughly 100,000 Fijians without reliable electricity) the strategy points in the right direction. Expanding access to clean energy has the potential to improve livelihoods, create local employment, and reduce the country’s exposure to volatile imported fuel prices.

There is also an opportunity here to promote innovation and community-driven energy solutions. Small-scale solar grids, energy storage, and local maintenance training could make Fiji a regional example of inclusive energy transition.

Supporting climate commitments through finance

The government’s announcement of its next sovereign green bond issuance, this time in the domestic market, is a clear signal that climate-smart finance is becoming embedded in public planning. Fiji was a pioneer in launching green bonds in 2017, and bringing this model home could encourage greater local participation in climate-aligned investment.

The success of these bonds will hinge on how transparently funds are managed and how effectively projects are monitored. Investors and the public alike will look for evidence that climate outcomes—not just financial returns—are being achieved. The government’s commitment to enhanced environmental legislation and implementation of the Climate Change Act also reinforces the broader institutional support for green finance and climate governance.

This is an area where Fiji has led diplomatically and is now seeking to lead practically. By building capacity in climate finance access and reporting, Fiji could attract further international support while ensuring its own budget becomes a reliable engine of climate resilience.

Embedding resilience in public investment

Underneath the headline figures lies a broader shift in thinking. Infrastructure is no longer viewed solely as an engine of economic development, but also as a frontline defence against climate risk. In the past, roads, bridges and utilities have been rebuilt time and again after cyclones and floods. Now, the aim is to build better from the start; with resilience at the design and construction stages.

What’s needed going forward is a more systematic integration of climate risk into project planning, budget allocations, and public procurement. Climate-resilient standards, stronger engineering oversight, and routine inclusion of adaptation metrics will help ensure Fiji’s public assets stand the test of time.

There’s also room to evolve how budgets themselves reflect climate ambition. With tools like climate budget tagging and resilience performance indicators, Fiji can make progress toward a whole-of-government approach to climate action. This would ensure that all sectors, from health to agriculture to education, are pulling in the same direction and building shared resilience.

There is more to be done, particularly in embedding resilience and accountability into the infrastructure delivery process. But the steps taken in this budget show that Fiji is ready to match its climate leadership with domestic action. With careful implementation, sustained reform, and ongoing collaboration with the private sector and international partners, the country can turn infrastructure investment into climate resilience and growth into long-term security.

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