Insularity and Oil Dependence in Marshall Islands

The Republic of Marshall Islands (RMI) a Small Island Development State is ecologically fragile and highly vulnerable to the impacts of climate change. Small size, limited resources, geographic dispersion and isolation from markets, place the island at high risk of insularity. Most importantly, as other remote archipelagos, the islands are facing a heavy and increasing reliance on imported petroleum products, which is a major threat to energy security.

The national priority is to respond to the vulnerability and dependence of the energy sources and to improve access to affordable and reliable sources of energy to enhance sustainable livelihoods contributing to the economic growth and development.

OIKO developed a climate finance scenario for the 11th European Development Fund (EDF) through a comprehensive assessment of climate readiness of the Energy Sector in the RMI. Following Green Climate Fund´s Readiness Tools and Guidebooks, we provided training to get ready to access climate finance.

After a consultative process with policy-makers about the public investment plan, a review of the macroeconomic scenario, the revenue collection strategy, the regulatory framework for both the public and private sector; the policy advice concluded in a new support program to four key strategic areas that include: national energy planning, energy to work towards the optimum utilization of energy resources, security, the power sector, and renewable energy development.

The proposed options resulted in a substantial increase in country’s electricity requirements to be met from renewable energy sources: biomass, solar, wind and other renewable resources, reducing imported petroleum for diesel back-up generators.


Marshall Islands





Majuro atoll in Marshal Islands