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18. More than half of electricity generated originates from renewable energy resources, while the rest depends on imported fossil fuel powered energy. Reducing energy imports is one of the Government's policy objectives. Tax incentives are granted to promote development of renewable energy resources. Prices are regulated, and subsidies are granted to small domestic consumers and schools.

1.4. Micro, small, and medium-sized enterprises (MSMEs) play a crucial role in Fiji's economy, (...) However, they face numerous challenges, including (...) and the frequency and magnitude of extreme weather episodes, such as cyclones, flooding, and tsunami, which frequently cause severe damage to the economy and infrastructure. The Asian Development Bank considers that Fiji's growth trajectory and the increasing urbanization over the past decade have also created growing environmental challenges, including the degradation of land resources, increased risk of flooding to coastal settlements, and unsustainable exploitation of marine resources.

1.5. According to the World Bank, Fiji's exposure to climate change threatens to undermine the country's long-term development objectives as stated in its current Development Plan. The authorities indicate that several initiatives are in place to face the challenges posed by climate change, including a National Adaptation Plan, which was launched in 2018 to strengthen the country's resilience. In addition, Fiji's Low Emission Development Strategy outlines long-term sustainable and resilient economy-wide mitigation pathways through to 2050.

1.6. In September 2021, Fiji adopted the Climate Change Act. The Act legally binds Fiji to its commitment of net-zero carbon emissions by 2050. Fiji's emission reduction target focuses on the energy sector, specifically on electricity generation and transmission and demand-side energy efficiency. According to the authorities, among specific measures that are undertaken, subsidies are provided on environmentally friendly items and on renewable energy products such as solar lamps, chargers, and batteries.

1.7. On 20 February 2016, Tropical Cyclone Winston struck Fiji, destroying physical assets and severely undermining production of goods and services. According to the World Bank, it impacted over 60% of the total population of Fiji. While housing and transport were the hardest hit, the highest level of production losses occurred in agriculture (including sugar). Lower activity was also reported in fishing and aquaculture. The cyclone caused damages amounting to nearly 20% of Fiji's GDP. However, the economy was resilient and grew by 2.2%.

1.8. Various stimulus packages, including Fiji National Provident Fund's Cyclone Winston Natural Disaster assistance and the Government's Help for Homes initiative, were implemented. In addition, concessional loan packages offered by financial institutions post-cyclone, (...) Investment activities were strong, spurred by the post-cyclone reconstruction work.

1.13. The authorities appear to be cognizant of the numerous challenges affecting the economy. In November 2017, they adopted a 20-Year Development Plan (2017-2036), which outlines the country's future development vision. It places emphasis on, inter alia, promoting MSMEs' development, empowering youth and women, increasing resilience to climate change, and building an environmentally sustainable economy. (...)

1.16. (...) according to the authorities, in 2020 the RBF [Reserve Bank of Fiji] increased the Import Substitution and Export Financing Facility (ISEFF) allocation to FJD 300 million to provide credit to exporters, farmers, public transportation, and renewable energy businesses.

2.2. (...) the Prime Minister became responsible for foreign affairs, climate change, environment, civil service, information, public enterprises, and veteran affairs.

2.3. The MTCSME [The Ministry of Trade, Co-operatives, and Small and Medium Enterprises] is responsible for formulating and implementing Fiji's external trade policy. (...) The MTCSME consults with trade-related agencies such as the Reserve Bank of Fiji (RBF), and other ministries including the Office of the Prime Minister (which is in charge of areas including public enterprises, climate change, and environment); (...)