In 2007, the UNFCCC Secretariat prepared a report on
"Investment and Financial Flows to Address Climate
Change".11 The report covers mitigation and adaptation in
various sectors over the period to 2030. The report defines
an investment as the initial (capital) cost of a new physical
asset with a life of more than one year, such as the capital
cost of a gas-fired generating unit or a water supply
system. A financial flow is an ongoing expenditure related
to climate change mitigation or adaptation that docs not
Climate change adaptation is vital for Pacific SIDS. Long-term effects, including the increasing frequency and severity of extreme events such as high rainfall, droughts, tropical cyclones, and storm surges are affecting the people in this region. Coupled with non-climate drivers, such as inappropriate land use, overexploitation of resources, increasing urbanization and population increase, development in the region is increasingly undermined.
Small island states present a significant challenge in terms of sustainable tourism development. On a small island there are limited resources, economic and social activities tend to be concentrated on the coastal zone, and the interconnectivity between economic, environmental, social, cultural and political spheres is strong and pervasive. Consequently the sustainable development of tourism is more a practical necessity than an optional extra.