Green investments must meet the same financial tests as any other, Pension Office CEO says

he Maldives Pension Administration Office (MPAO) is exploring climate-related investments, but each one must meet strict governance, risk and return standards, Chief Executive Officer Yazmeed Mohamed said at the 13th Maldives Finance Forum.

"Green investment must never mean compromising financial discipline," Yazmeed said, according to a statement from the Pension Office.

The office runs the Maldives Retirement Pension Scheme (MRPS). The scheme's Pension Fund passed MVR 30 billion in net assets this year, the statement said. The office describes itself as the country's largest institutional investor.

Climate risk and retirement savings

Yazmeed linked the country's exposure to climate change directly to the pension fund. He said about 80 percent of the Maldives' islands lie less than one metre above sea level.

Climate-related disruptions to fisheries, tourism and small businesses can spread through the wider economy, he said. They can lead to lost wages, interrupted pension contributions and higher financial risks.

Strengthening the national economy is therefore essential to protecting the fund's long-term performance and members' retirement security, Yazmeed said.

Exploring ESG and climate finance

Yazmeed said the office remains committed to diversifying its domestic investments, improving portfolio allocation and building long-term resilience.

As part of that strategy, the office is exploring ways to support environmental, social and governance (ESG) initiatives, including climate financing, he said.

Every investment must be backed by sound governance, clear risk assessments and proven financial viability, he said. The priority is to find opportunities where environmental resilience and financial sustainability support each other and produce lasting returns for the fund.

The statement did not name any green projects under consideration. It also did not say how much of the fund could go into such investments, or when.

Projects needed, not only policies

Yazmeed pointed to recent progress in the country's sustainable finance sector. He listed national financing strategies, climate-risk assessments, climate investment pipelines, sustainability reporting requirements, stronger environmental auditing and new routes to international climate finance.

These steps are laying the foundations for a credible green finance market, the Pension Office said. It named renewable energy, climate-resilient infrastructure and the blue economy (ocean-based activity such as fisheries and marine tourism) as areas where capital could be directed.

But policies and frameworks alone will not be enough, Yazmeed said. Turning green finance into real investments will require bankable projects, suitable financial structures, effective risk management and investor confidence.

He called for closer cooperation among the government, regulators, financial institutions, investors, businesses and development partners.

Groundwork with UNDP

Some of the groundwork Yazmeed described has involved the United Nations Development Programme (UNDP).

In February, UNDP Maldives and government ministries held a two-day national workshop on designing bankable green investment projects and mobilising climate finance, according to UNDP. In April, UNDP and partners ran a training programme for the Auditor General's Office on environmental and climate audits, UNDP said.

A fund concentrated in government debt

The push to diversify comes as the fund remains heavily invested in domestic government debt. Earlier this year, the Maldives Independent reported that the fund held about MVR 25 billion in government securities.

MPAO's published investment strategy says the scheme has a long-term plan for overseas investment, but that no overseas investments have been made so far.

Yazmeed took office as CEO in August 2026. In October, he said the office aims to double the fund to MVR 60 billion within five years, according to the Pension Office.

About the forum

The Pension Office organised this year's forum with UNDP Maldives. Its theme is "Green Finance: Sustainable Investment and Financial Security in the Maldives". Policymakers, financial institutions, regulators and development partners took part.

The forum was scheduled for 14 November at dusitD2 Feydhoo in Addu City, according to the organisers' website.

It aims to identify financing gaps, practical solutions, and financial instruments and partnerships that could advance green finance in the Maldives over the next two to three years, the Pension Office said.

The forum was first held in 2012 and takes place every year. Last year's edition, held in September 2025 at Kurumba Maldives, focused on building a resilient and inclusive capital market.