Direct Financing for Communities and Businesses to Respond to Climate Change in the Cook Islands

The Cook Islands face growing risks from climate change, particularly through the intensification of tropical cyclones. Currently, the Cook Islands incur, on average, about USD 5 million per year (two per cent of GDP) in direct losses due to cyclone-related impacts, of which 90 per cent are to the building sector. Increasing cyclone intensity in the coming decades will further exacerbate these losses. This threat is critical, as nearly all buildings are privately owned and highly exposed to climate hazards. The programme will provide direct climate finance through an Enhancing Direct Access (EDA) facility, with components ranging from technical support and building retrofitting to public awareness and capacity-building. It will be delivered under a unified framework to individuals, the private sector, non-governmental organisations (NGOs) and community groups. The programmatic model allows for scalable, country-owned solutions integrating technical, financial and institutional elements to build long-term resilience. The programme is expected to protect a substantial portion of the population and reduce long-term damage to infrastructure, enabling faster post-disaster recovery and economic continuity. Improved access to clean water and better functioning of community facilities will improve public health, and regional learning will be enhanced by positioning the Cook Islands as a model for climate-adaptive building practices in other Small Island Developing States.