Atoll Nation of Tuvalu Faces Climate Existential Crisis, Frustration With Slow Funding

Water floods in, showing how nature and people are at risk. Trees can't grow because of salt, leaving no protection. This photo warns about climate change's effect on our islands and atolls. It's a clear sign we need to act to keep our world safe. Credit: Gitty Keziah Yee/Tuvalu

Water floods in, showing how nature and people are at risk. Trees can’t grow because of salt, leaving no protection. This photo warns about climate change’s effect on the islands and atolls. Credit: Gitty Keziah Yee/Tuvalu

By Cecilia Russell
NICE, Jun 12 2025 – Prime Minister of Tuvalu, Feleti Teo, describes himself as an optimist—despite the existential crisis his atoll nation faces with climate change-induced sea level rise and frustration with existing international financial mechanisms to fund adaptation and mitigation.

The 3rd UN Ocean Conference was a success, he told a press conference today, June 12. At the beginning of the week, he ratified an agreement under the UN Convention on the Law of the Sea on the Conservation and Sustainable Use of Marine Biological Diversity of Areas beyond National Jurisdiction (BBNJ) and was also now party to the FAO’s international agreement to specifically target illegal, unreported, and unregulated (IUU) fishing—Agreement on Port State Measures (PSMA).

These agreements were crucial.

“The ocean is everything to us—a source of protein, income, and fisheries. It represents  40 percent of the domestic budget. It plays a vital role,” Teo said. But it is a double-edged sword because it also represents the greatest threat because of climate change-induced sea level rise, which for the atoll nation means that more than 50 percent of the country will be regularly inundated by tidal surges by 2050.

So, he needs to contemplate services for the needs of his people in a region where there is no scenario of moving to higher ground—because there isn’t any.

Tuvalu is “totally flat.”

Teo said USD 40-million had been spent on the country’s flagship Tuvalu Coastal Adaptation Project, known as TK of which phase one was completed.

But behind the small success was a clear sense of frustration.

“The coastal adaptation projects will continue into the future,” Teo said. “But it is a very expensive exercise.

Feleti Teo, Prime Minister, Tuvalu addresses the media at UNOC3. Credit: SPC

Feleti Teo, Prime Minister of Tuvalu, addresses the media at UNOC3. Credit: SPC

He made a quiet plea to development partners and financing mechanisms to be responsive.

“I’ve always urged or requested our development partners and our international financing mechanisms to be able to be more forthcoming in terms of providing the necessary climate financing that we need for us to be able to adapt and give us more time to continue to live in the land that we believe God has given us,” Teo said.

But he later admitted that the frustration with the Loss and Damage Fund and other climate financing mechanisms meant that applications could take as many as eight years to complete. This led to his Pacific partners establishing the Pacific Resilience Facility that would allow the Pacific to invest in small, grant-based but high-impact projects to make communities disaster-ready.

Teo said the UNOC3 had given them an opportunity to articulate their concerns, and he hoped that the states participating in the conference had listened to them.

“We don’t have that influence—except to continue to tell our story.”

The Pacific French Summit was a particular highlight and he believed that French President Emmanuel Macron had the region at heart.

IPS UN Bureau Report