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An AFP investigation has found that a trust fund established to help Tuvalu cope with the effects of climate change has invested in fossil fuel-related industries, including coal mining, gas exploration and the world’s largest crude oil refinery.
Tuvalu, a low-lying Pacific island nation highly vulnerable to rising sea levels, relies heavily on the $200 million Tuvalu Trust Fund to support its climate adaptation and economic needs. The country has already begun reviewing the fund’s exposure to fossil fuels following AFP’s findings.
The fund is managed by advisory firm Mercer, which has placed Tuvalu’s assets in investment portfolios that include stakes in companies linked to major greenhouse gas emissions. Financial records and government reports show exposure to sectors such as mining, energy and emerging markets.
Among the holdings identified was Reliance Industries in India, which operates the Jamnagar petrochemical complex, described as the world’s largest single-site crude oil refinery. The facility is also among the highest industrial emitters of carbon dioxide globally.
Other investments include US utilities Southern Company and Duke Energy, both listed among major greenhouse gas emitters, as well as mining giant Rio Tinto and Australian oil and gas company Woodside Energy.
Tuvalu’s government has previously criticised fossil fuel expansion, with leaders warning that continued development threatens the country’s survival. Climate Minister Maina Talia has said emissions from such projects pose a direct risk to the nation.
Experts have raised concerns that the fund’s investment strategy appears to pay limited attention to climate commitments. Tuvalu officials have said they are reviewing the portfolio to reduce exposure to fossil fuels while still maintaining financial returns for the country’s development needs.
