Palau Social Security Administration changed its investment policy, moving 60 million of its equity to the Climate Transition investments which is defined as long-term capital growth by investing in companies globally that either provide solutions to climate change or orientate their business models to a low-carbon economy”.

“We updated our investment policy to reflect the urgency of the climate crisis,” expressed Johaha Ngiruchelbad, Chairperson of the Social Security Administration in an interview with Financial Times.  “We took action to invest in a climate transition strategy, that seeks long-term capital appreciation while also reducing carbon emission,” she added.

President Surangel Whipps Jr. in the same interview said that on the surface, Pacific islands countries, Palau included, seems to have a low carbon footprint but a deeper analysis shows that investments Palau have in the global markets and the capital it provides to global companies shows that for every 1 million revenue each portfolio companies generates, it also generates “135 cubic tons of carbon per year”.

Palau and FSM joined in this investment strategy to “align our national interest with our investment strategy” according to President Panuelo of the Federated States of Micronesia. “The investment portfolio must seek opportunities associated with a global transition to a lower-carbon economy.”

President Whipps supported the strategy saying, “Palau is supporting alignment of our investment policy with the commitments we made through the Paris Agreement.” 

President Whipps and Palau delegation left Monday morning on their way to COP 26 in Glasgow, UK.  “We need to take action and we need to be united…As Pacific leaders, we show our leadership and at the same time we need to demand action.”  

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