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The earth works like a greenhouse. Carbon dioxide (CO2), methane, and other naturally occurring greenhouse gases (GHGs), as well as human-made industrial gases trap heat from escaping into space. This keeps the earth’s temperature within a life-sustaining range. Without the greenhouse effect, Earth would be much colder—an average temperature of –19° Celsius (C). Human reliance on fossil fuels for energy has increased the amount of CO2 in the atmosphere. Biogenic emissions of GHG from land use have magnified the greenhouse effect. Deforestation and poor land use, which have reduced the absorptive capacity of plants, forests, and soils for CO2, have made things worse.

Farmers cultivate steep hillside plantations of taro and bananas. Fishing communities pull tuna and marlin from the blue depths of the Pacific Ocean. Households tend mile after mile of neatly trimmed roadside gardens. Samoa’s beautiful natural environment also offers a striking setting for a rich and complex culture. Communities headed by traditional leaders, the matai, meet regularly in fale, the open-sided houses, to reach communal decisions. And on Sundays the roads are flooded with families dressed in dazzling white clothes flocking to hundreds of churches.

On the 14-15 October 2010, 14 Pacific Island countries met to discuss the Pilot Program for Climate Resilience. This meeting was attended by representatives from Australia, Cook Islands, Fiji Islands, Kiribati, Federated States of Micronesia, Nauru, Palau, Papua New Guinea, Republic of the Marshall Islands, Samoa, Solomon Islands, Timor-Leste, Tonga, Tuvalu, and Vanuatu. At the meeting there were also representatives from international, regional and national organizations, development partners and non-government organisations. The meeting was jointly hosted by the Asian Development Bank and the World Bank.

Th e Vanuatu Economic Report 2009 outlines the state of economy and social development in the country and presents a road map for addressing key development challenges. It identifies the principal binding development constraints and opportunities in public sector performance, private sector and social development, and governance.

This Climate Change Implementation Plan (CCIP) for the Pacific Regional Department (PARD) of the Asian Development Bank (ADB) describes the areas of focus for PARD's operations and identifies key gaps between country and ADB actions, as well as opportunities for scaling up ADB's assistance related to mitigation, adaptation and associated cross-cutting needs. This gap analysis points to recommended interventions in regional and country programs for additional technical assistance (TA) and financial assistance, including access to new climate funds and adoption of new financing mechanisms. These include multi-donor Climate Investment Funds (Clean Technology Fund and Strategic Climate Fund), ADB's Future Carbon Fund, and possibly a new Sustainable Fuel Credits mechanism to promote reduced petroleum consumption. The CCIP will evolve through periodic updates in order to effectively guide ongoing and future programs and TA and project design. Going forward, specific climate change interventions will continue to be incorporated into the Country Partnership Strategy (CPS) and Country Operations Business Plan (COBP) for each Pacific Developing Member Country (PDMC) and into the Regional Operations Business Plan (ROBP) for the Pacific region as a whole. TA and investment projects will be designed, taking into consideration regional and country variations in governance, institutional capacity, and geographic and local environmental conditions.

Fiji, New Caledonia, Vanuatu, Solomon Islands, Samoa and Tuvalu report monitoring data for this report, with data from a broad range of observers (scientists, students, dive guides and communities); Nauru has not conducted recent monitoring; Coral cover has changed since the 2004 report due to effective management (positive), or local disturbances, coral predation and natural disasters (negative). Average coral cover at monitoring sites was 45% in Fiji; 27% in New Caledonia; 43% in Samoa; 30% in Solomon Islands; 65% in Tuvalu; and 26% in Vanuatu; Monitoring observations over 9-10 years in Fiji and New Caledonia indicate that these reefs have coped reasonably well with natural and human stressors without catastrophic changes; Densities of edible fish and invertebrates remained generally low (0-10/100m2) in 4 countries reflecting high subsistence and commercial fishing pressure. Butterflyfish, parrotfish, surgeonfish and damselfish were generally most dominant. High densities of parrotfish were reported from 4 countries; Socioeconomic monitoring is conducted in Fiji, Samoa and Solomon Islands. Greatest activity is by the Fiji Locally Marine Managed Area (FLMMA) network at 270 villages across all Fiji provinces. Most households harvest marine resources for subsistence and partially for sale, with few commercial fishers. In Samoa, more people eat canned fish than fresh fish, possibly because of decreased fish stocks in the last 10 years. In the Solomon Islands, some traditional managed systems have collapsed due to poor understanding of fisheries and resource management issues or poor national regulations. Mangrove destruction and greater fishing pressure are reducing family incomes;

The purpose of the Asian Development Bank (ADB) Pacific Strategy 2005-2009 is to provide a framework for ADB operations in its 14 Pacific developing member countries (PDMCs)1 and for ADB support to regional cooperation in the Pacific. This third ADB Pacific Strategy will allow ADB's Pacific Department (PARD) to better focus its activities, deepen its experience and expertise in key result areas (KRAs), and align resources to strategy objectives, in order to maximize the impact of ADB support to the development efforts of the PDMCs.

Some economic and social progress has been made since Papua New Guinea's independence in 1975, but the people remain poor by regional and international standards. Thirty one percent of the population lives below the international poverty line of $1 per capita per day. Most of the poor are in rural areas, especially the north coast and highlands provinces. Women are worse off than men, even having a lower life expectancy. The fundamental development challenge is still to translate natural resource richness into broad-based, sustainable economic growth and social development.

During the current Compact of Free Association with the United States (US) that dates from 1987, economic growth in the Federated States of Micronesia (FSM) has averaged a 1.9 percent rate of annual increase in gross domestic product (GDP). Taking into account the population growth of 2.0 percent, GDP per capita declined during this period. At the beginning of the Compact, the FSM was endowed with a weak policy environment, which was inward looking, not conducive for private sector development, and supported a large Government. Supported by large external transfers, the economy initially boomed and grew by over 4 percent annually between fiscal year (FY)1987-FY1995, with the private sector growing by 7.1 percent as a modern cash economy established itself in nontraded activities. However, this period was not to be long-lived.