Minister: Maldives needs to invest in environmental protection to become a developed nation

The Maldives needs to invest in renewable energy, environmental protection and water security in order to achieve its goal of transforming into a developed nation, says Finance Minister Hassan Zareer.

Zareer made the remarks in his keynote address at the opening of the 13th Maldives Finance Forum on Saturday morning.

In his address, Zareer said that climate change poses a direct threat to the Maldivian economy and the lives of the Maldivian people.

Emphasizing the role of sea life in sustaining the country’s tourism and fisheries sector and in protecting the Maldives islands, Zareer stressed the need to boost climate resilience in planning and financing developmental projects in the country.

“Climate risk poses a threat to the economy. And threats to the economy must be managed,” he said.

He added that the state budget, international assistance and microfinance remains crucial for establishing strong infrastructure and sustaining public services.

He also stressed the importance of capital investments from the private sector and long-term investments from financial institutions in order to fulfill such needs while managing the country’s debt sustainably so as not to burden future generations.

Highlighting on the government’s ambitious goal to generate 33 percent of the country's total electricity and energy needs from renewable energy sources by 2028, Zareer stressed the need for major investments and connections in order to meet the target.

He noted that expanding renewable energy will reduce the country’s costly reliance on fuel imports.

In his address, Zareer urged banks to introduce financial instruments to cater to sustainable initiatives.

He said that the success of green finance initiatives must be judged based on results, which includes establishment of strong infrastructure, minimizing dependency on fuel in generating electricity, and financial protection to Maldivians.

The Maldives Finance Forum is an annual gathering of policymakers, regulators, financial institutions, development partners and civil society, organized by the Maldives Pension Administration Office.