Climate Investment Is Key to Maldives’ 2040 Development Goal: Minister Zareer

Finance Minister Hassan Zareer has said the Maldives must invest in renewable energy, coastal protection and water security to achieve its goal of becoming a developed nation by 2040.

Speaking at the Maldives Finance Forum 2026, Zareer said climate change poses a direct threat to the country’s economy and livelihoods. He pointed to the role of marine ecosystems in sustaining tourism and fisheries and protecting islands, saying climate resilience must be built into how the country plans and finances its development.

“Climate risk is economic risk. And economic risk must be managed,” Zareer said.

The minister said public funding, international grants and concessional financing would remain vital to building resilient infrastructure and protecting essential services. He also called for private capital and long-term investment from financial institutions to help meet those needs without placing an unsustainable debt burden on future generations.

Zareer pointed to the government’s target of meeting 33 per cent of electricity demand through renewable energy by 2028. He said reaching the target would require substantial investment and partnerships, while expanding renewable energy would reduce the country’s dependence on imported fuel.

The minister said the government was advancing the National Sustainable Finance Roadmap and the National Financial Inclusion Strategy. He also highlighted the accreditation of the Maldives Finance and Leasing Company as the country’s first national Direct Access Entity to the Green Climate Fund, saying it would strengthen access to international climate financing.

To attract more private investment, Zareer called for clearer criteria for what qualifies as a sustainable investment and stronger financial disclosures. He said insurance, guarantees and blended finance could help manage project risks and bring in investors.

Zareer urged banks to develop financing products for sustainable projects and businesses to put forward viable proposals. He said the success of green finance should be measured by the projects delivered and their results, including stronger infrastructure, reduced dependence on imported energy and greater financial security for Maldivians.

Now in its 13th edition, the Maldives Finance Forum is a leading platform that brings together policymakers, regulators, financial institutions, development partners and civil society organisations. This year’s forum focused on green finance, sustainable investment and financial security in the Maldives.