Tonga Roundup: Leadership in climate financing, rugby championship, $992.8 million gov't budget
Tonga leads the way in climate finance readiness
Tonga became the first Pacific Island country to host a Climate Finance Readiness Writeshop and Validation Exercise (4–7 March 2025), marking a major step in boosting its capacity to access climate finance. Co-hosted by the Pacific Community (SPC) and MEIDECC, the event trained 42 participants from government, civil society, and private sectors on developing quality funding proposals using tools like the Woven Logical Framework and PINT. The programme included a field visit to a mangrove restoration project and concluded with a Validation Exercise refining Tonga’s Climate Change Fund proposal. Lu’isa Tu’iafitu Malolo, MEIDECC’s Climate Change Director, emphasised that the workshop strengthens Tonga’s capacity to develop, implement, and monitor effective climate projects—a model for other Pacific nations.
PM presents Tonga's biggest budget $992.8 million
Tonga’s largest budget yet—$992.8 million for 2025-26—was presented by Prime Minister Hon. Dr 'Aisake Eke to Parliament on 3 June. This includes $748.9 million in cash and $243.9 million in in-kind aid from development partners. Dr. Eke said the budget aligns with His Majesty’s address, the National Development Summit, and government strategic plans, aiming to address Tonga’s economic and social challenges and enhance prosperity. A $29.1 million deficit is projected, mainly due to infrastructure investments, and will be financed by $30 million in local bonds.
Key priorities include:
- Climate resilience: Funding for the Fanga’uta Lagoon Bridge, supported by the Asian Development Bank, to aid disaster evacuation and ease traffic.
- Health: $10 million for health centres, $7 million for Prince Ngu Hospital (Vava'u), and $6.5 million for the new Queen Salote Nursing School.
Samoa and Tonga ready for clash
Oceania Rugby and the Samoan and Tongan Under-20 teams are set to clash at Apia Park on Saturday, June 7, despite heavy rain from Tropical Disturbance 07F. Oceania Rugby’s Wayne Schuster said preparations are on track and alternative plans are in place if needed. If the match is cancelled, Tonga would be awarded the trophy. The winner qualifies for the World Rugby Under-20 Trophy in Spain. Samoa’s captain, East Timor Xanana Viliamu, said the team is prepared for Tonga’s physicality, having practised against local teams using Tonga’s style. “It’s an honour to lead the team,” Viliamu said.
Pacific Central Bankers and Alliance for Financial Inclusion meet in Tonga
Six Pacific central banks are meeting in Nukuʻalofa, Tonga, this week to discuss how financial inclusion can boost economic resilience and social equity. Prime Minister Hon. ‘Aisake Eke opened the meeting on 3 June 2025, hosted by the Alliance for Financial Inclusion (AFI), with over 70 participants from Fiji, Papua New Guinea, Samoa, Vanuatu, Solomon Islands, and Tonga, plus guest delegates from Seychelles and Kenya. Topics include digital innovation, cross-sector collaboration, data governance, and the launch of Tonga’s Fintech Regulatory Sandbox. Tonga’s Reserve Bank Governor, Tatafu Moeaki, emphasised its role in fostering safe testing of digital financial solutions. On 6 June, PIRI governors will endorse the Nuku’alofa Pledge for inclusive and climate-resilient financial systems.
Seabased secures 10MW wave energy project in Tonga
Seabased has signed an MoU with Tonga and SIDS DOCK to build a 10MW wave energy plant offshore Tonga. The project will start with a 2MW phase, expected to save $2 million, displace 2 million litres of fuel, and power 2,800 homes. The second phase will add 8MW, saving up to $10.5 million and 42 million litres of fuel. The plant aims to meet half of Tonga’s energy needs and cut emissions by 20%. Tonga’s minister, Albert Vaea, emphasised the relief renewable energy could bring to high-cost island economies. Seabased CEO Laurent Albert highlighted additional benefits like desalination and green hydrogen production.
