Solomon Islands: Selected Issues

This Selected Issues paper examines the evolving risks and adaptation challenges facing the Solomon Islands due to climate change, with emphasis on rising temperatures, changes in marine ecosystems, and sea level rise. Utilizing recent scientific data, empirical literature, and sectoral models, it assesses the projected economic impacts, including potential aggregate GDP losses, vulnerabilities in the fisheries and forestry sectors, and the costs associated with sea-level rise. The analysis underscores the necessity of robust adaptation strategies and sustainable resource management to mitigate these risks. It argues that effective adaptation requires strategic government action to prioritize resources, implement cost-efficient policies, and address market barriers that limit private adaptive responses. Drawing on macro-fiscal guidance and practical experience, the paper outlines key principles for designing climate adaptation policies—stressing the significance of climate-specific interventions and the use of cost-benefit analysis as a consistent evaluation tool. The findings aim to inform policymakers about targeted adaptation strategies to enhance economic resilience in the Solomon Islands.