Tuvalu PM voices disappointment over trust fund's fossil-fuel investments amid COP31 lead-up
Prime Minister Feleti Teo, speaking at the Island State Oceans Summit in Tokyo, said it was "not a good look" that the US firm Mercer had invested portions of Tuvalu's $200 million Trust Fund in coal mining, gas exploration and the world's largest oil refinery, per an AFP investigation. Tuvalu is now conducting internal due diligence and reviewing the fund's fossil-fuel exposure. Teo emphasized that Tuvalu will host a special leaders' summit later this year ahead of the UN's COP31 climate conference, focusing on financing climate mitigation for vulnerable states. Separately, Tuvalu joined fellow Taiwan allies Palau and the Marshall Islands at a Pacific Cultural Gala in Taipei, where President Lai Ching-te reaffirmed cooperation, and India promoted yoga programs across Pacific nations including Tuvalu.
Why it matters
Tuvalu, a chain of low-lying atolls, is among the world's most climate-vulnerable nations and has built international standing on staunch climate advocacy, making the revelation of fossil-fuel investments in its survival fund politically embarrassing. The Trust Fund, created in 1987 with Australian, NZ and UK backing, is a financial lifeline, and the contradiction undercuts Tuvalu's moral leadership as it prepares to host a high-visibility pre-COP31 summit. Tuvalu's continued recognition of Taiwan also keeps it strategically significant amid intensifying China-Taiwan competition for Pacific allies.