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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.

While development of natural non living resources such as minerals and water can better the lives of Pacific islanders, it needs to be managed to ensure a safe and healthy environment. And as any resource manager today knows, to manage resources we need to manage the people who use them. A number of projects in the Pacific have recently turned to economic tools to help manage the way people use non living natural resources. In this paper selected case studies will be used to: ? demonstrate the different ways that economic tools are helping to improve the governance of a variety of non living natural resources in the Pacific: and ? consider the prospects for using these tools more generally in the Pacific in the future. To highlight the ways in which economic tools can improve the governance of non living natural resources, a simple project cycle is used. A number of case studies including the following are used to show how economic tools are improving management of non living natural resources in different sectors including water, disasters, oceans., minerals and energy. Details of case sftidies are provided in the paper accompanying the presentation. Following discussion of the case studies, the implications for using economic analysis to support the management of 11011 living resources in the Pacific is discussed.

The Fiji Department of Energy through its rural electrification programme developed two community-based biofuel projects in Vanua Balavu (villages of Lomaloma, Naqara and Sawana) and Welagi in Taveuni with funding assistance provided by the French Government through the Secretariat of the Pacific Community. The primary objective of the projects was to use coconut oil to generate electricity for the communities. The Vanua Balavu Biofuel Project was installed in April 2000 and the Welagi Biofuel Project was installed in July 2001.

The Pacific Strategy for the New Millennium1 of the Asian Development Bank (ADB) focuses on the core objectives of (i) continuing support for economic growth, good governance, and public sector reform; (ii) promoting private sector development as the engine for growth; and (iii) supporting sustainable environmental management and equitable social development. A new regional strategy is being prepared for ADB operations in the Pacific, which will focus on the priority needs of the poor, as defined by an extensive program of qualitative and quantitative poverty assessment, based on listening to the voices of those in hardship or poverty. The new strategy will focus on improving access to basic services and creating employment opportunities. As the Government is beginning preparation of its Strategic Development Plan 8 (SDP8) for 2005-2007, it is timely to review ADB’s strategy and program for Tonga.