Climate finance is often judged by speed. In the FSM, the tougher test is whether projects meet community needs. This study reviews ESIA challenges across 13 projects in Pohnpei, Kosrae, and Yap.
Climate finance is often measured by how quickly it reaches the ground. In the Federated States of Micronesia (FSM), a tougher question is whether projects reflect what communities actually need. 13 environmental and social impact assessments (ESIAs) across Pohnpei, Kosrae, and Yap States suggest that much island resilience lies outside the frameworks used to measure it. This critical self-assessment examines ESIA challenges and how best practices can be built into implementation while complying with environmental and social (E&S) safeguards, with a focus on capacity building, traditional community resilience and leadership, and State and stakeholder support.
The FSM, a Small Island Developing State, has received US$16.6 million from the Green Climate Fund through the Enhancing Direct Access pilot, supported by the Pacific Community (SPC). Rising seas, drought, and extreme weather place heightened pressure on outer islands and atolls. Drawing on the ESIAs and Management Plans (ESMPs) prepared for these projects, the assessment considers how safeguards can protect communities without overlooking their adaptive capacity. Communities want projects they can own and sustain, yet approval rests on maintenance funding, permits, and State support that remain conditions rather than completed commitments.
Willy is a Senior E&S Consultant with 18+ years in ESIA and safeguards across international projects, including Australia and the Pacific. He specialises in regulatory approvals and due diligence.