The economic foundation of the Pacific at risk due to climate change impacts

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By Grace Mitchell

Climate Change Impacts Threaten the Economic Foundation of the Pacific

The economic foundation of the Pacific, particularly for island nations like Kiribati, is at significant risk due to climate change impacts. One of the most pressing concerns is the potential migration of tuna populations as ocean temperatures rise. Tuna fishing is a critical source of revenue for many Pacific Island countries, and changes in tuna distribution could have severe economic consequences.

Tuna and Kiribati’s Economy

The vast Pacific Ocean and its islands produce more than half of the world’s tuna. Kiribati, a country composed of 33 small islands scattered across the central Pacific, relies heavily on tuna fishing licenses for government revenue. Over 70% of Kiribati’s government income comes from selling fishing licenses to foreign fleets, the highest proportion of any nation worldwide.

Although Kiribati has a very small land area—comparable in size to New York City—it controls an Exclusive Economic Zone (EEZ) of more than 3.4 million square kilometers. This EEZ spans three island groups: Gilbert, Phoenix, and Line. The waters within this zone are rich in marine life, including skipjack, yellowfin, and bigeye tuna.

Foreign fishing fleets, primarily from Japan, China, the United States, and the European Union, must purchase licenses from Kiribati’s government to fish in these waters. In 2024, Kiribati generated approximately $137 million from these license sales. This income is vital, contributing to nearly three-quarters of government revenue between 2018 and 2022 and accounting for about 40% of the country’s GDP, according to the International Monetary Fund.

Risks Posed by Climate Change Impacts on Tuna Populations

Warming ocean temperatures caused by climate change pose a substantial threat to tuna populations in Kiribati’s EEZ. Tuna are highly sensitive to small changes in water temperature, reacting to variations as slight as one-tenth of a degree Celsius. As surface waters warm, tuna are expected to migrate eastward toward cooler areas, moving away from Kiribati and other island nations in the western and central Pacific.

This migration could reduce the demand for fishing licenses in Kiribati’s waters, creating significant volatility in government revenue. The Pacific Community, a regional development organization, has identified Kiribati as one of the countries most vulnerable to tuna stock migration. Preliminary models suggest Kiribati could lose more than $10 million annually in fishing access fees by 2050 if global greenhouse gas emissions remain high.

Even under lower emission scenarios, local fishermen in Kiribati are expected to experience decreases in catch, with the Line Islands projected to face losses of up to two-thirds of their tuna stocks. This decline threatens not only government income but also local food security, as fish is a primary source of protein for Kiribati’s population of around 130,000 people.

Food Security and Socioeconomic Challenges

Fish consumption in Kiribati is high, averaging about 100 kilograms per person annually, compared to 9 kilograms in the United States and 22 kilograms in Japan. As local fish stocks decline, households are increasingly reliant on imported foods, which tend to be more expensive and less nutritious. This shift raises concerns about the nutritional quality of diets, especially in outer island communities where fish has traditionally been the main protein source.

Rapid urbanization, particularly in the capital Tarawa, is placing additional pressure on limited land and resources. The combination of population growth and declining fish stocks presents a growing challenge for food security and economic stability.

Efforts to Adapt to Climate Change Impacts

In response to these challenges, regional and international organizations are supporting adaptation initiatives. The United Nations’ Green Climate Fund (GCF) launched a $156.8 million project aimed at helping 14 Pacific Island countries, including Kiribati, adapt to climate change impacts on tuna-dependent communities and economies.

This project focuses on strengthening food security through improved information systems and early warning mechanisms to better predict tuna stock redistribution and its economic effects. It also aims to maintain government revenue and food supplies despite declining reef fisheries. The Kiribati Ministry of Fisheries estimates these measures could provide around four million nutritious fish meals annually for local communities.

Kiribati’s government is also taking steps to diversify its economy and reduce reliance on fishing licenses. Efforts include expanding domestic tuna processing and canning facilities, developing ocean farming of species such as milkfish, snapper, and sea cucumbers, and promoting sectors like tourism and renewable energy. The country is also leveraging its offshore sovereign wealth fund to support economic diversification.

Despite these initiatives, Kiribati faces an existential threat from climate change. The country’s low-lying islands, with the highest elevation only about two meters above sea level, are vulnerable not only to economic disruption but also to environmental changes that could affect the very habitability of the islands.

Original report

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