Palau Transport and Climate Profile 2026
Outline
PALAU
TRANSPORT AND CLIMATE PROFILE
Supported by:
Transport and Climate Change
Transport Energy Consumption
Adaptation and Resilience
Other Externalities
Vehicle Fleet
Urban Transport
Transport Investments
Transport and Climate Policy Documents
Distribution of Transport and Climate Policy Measures in Policy Documents
National Policy Priorities on Transport
Direct GHG Targets
These tables contains transport-relevant (e.g. economy-wide; sector-specific) GHG emissions targets as explicitly mentioned in the policy documents.
Economy-wide GHG emissions mandates
| Voluntary National Review 2019 - PLW | 2019 | target is a 22 percent reduction in emissions below 2005 levels by 2025 (NDC) from the energy sector | 2025 |
| Palau NDC | 2015 | 22% energy sector emissions reductions below 2005 levels by 2025 | 2025 |
Indirect Transport Climate Change Targets
These tables show non-GHG targets as specified in the policy documents which indirectly benefit climate change mitigation and adaptation in the transport sector.
Managing transport energy consumption
| Palau NDC | 2015 | 35% Energy Efficiency | 2025 |
Renewable energy
| VNR Report 2024 | 2024 | Increase in total energy produced from renewable sources to 100% by 2050 (power and transport sectors), | 2050 |
| Palau NDC | 2015 | 45% Renewable Energy target | 2025 |
Transport and Climate Policy Measures
These tables list the policy measures that relate to climate change mitigation and adaptation in the transport sector that had been identified in the transport policy documents.
Active mobility - General
| Voluntary National Review 2019 - PLW | 2019 | creating an environment conducive to alternative transport – walking and biking (Climate Change policy) | x |
Active transport infrastructure expansion and improvement
| VNR Report 2024 | 2024 | To address the triple threats to climate, health, and the environment, a Global Environmental Facility project is being planned to reduce transportation sector emissions using a combination of electric and hybrid-fueled public transport vehicles (including infrastructure support for e-vehicles) and improved walking and biking facilities. | x | ||||
| Voluntary National Review 2019 - PLW | 2019 | aspires to complete land transportation infrastructure incorporating sidewalks and public transport and a marine transportation system powered by renewable energy | x |
Airport infrastructure improvement
| Palau National Infrastructure Investment Plan 2021-2030 | 2021 | To slowly build air service facilities, and the safety and regulatory environment as the demand for air services increases. In addition to the above, a project involving major renovations to the international airport, including additional new gates and with estimated cost of $40 million funded by JICA/JBIC/SMBC is currently implementation. | x | ||||
| Voluntary National Review 2019 - PLW | 2019 | expansion of the international airport and domestic airports in Peleliu and Angaur | x | ||||
| Palau National Master Development Plan | 1995 | international airport upgraded domestic airport terminals constructed | x |
Aviation improvements - General
| Actions For Palau's Future - Medium-Term Development Strategy 2009-2014 | 2009 | review air service agreements with view to encouraging additional carriers, increasing scheduled flights and reducing charter flights | x |
Aviation safety
| Palau National Infrastructure Investment Plan 2021-2030 | 2021 | To slowly build air service facilities, and the safety and regulatory environment as the demand for air services increases. | x |
Biofuels
| VNR Report 2024 | 2024 | Palau's energy roadmap identifies several future options: (i) replace gasoline with a synthetic variant produced from renewable hydrogen and biomass | x | ||||
| Climate Change Policy | 2015 | Investigate viable options and for the use of biofuels, including options for converting the existing fleet of government vehicles | x | ||||
| Palau NDC | 2015 | Palau is investigating a project to convert waste cooking oil to biofuel for diesel vehicles, beginning with public school buses and a potential public bus route. | x |
Budget/ identification of aviation projects
| Palau National Infrastructure Investment Plan 2021-2030 | 2021 | a project involving major renovations to the international airport, including additional new gates and with estimated cost of $40 million funded by JICA/JBIC/SMBC is currently implementation. | x |
Budget/ identification of public transport projects
| VNR Report 2024 | 2024 | At present, Palau Visitor's Authority operates a public bus to support the twice-monthly “680 Night Market.” With support from MHRCDT and other partners, it has recently expanded to a daytime service linking the Belau National Hospital in Meyuns (Koror) with the Airai Commercial Center. It is envisaged that this service will expand subject to demand. | x |
Budget/ identification of transport asset management projects
| National Energy Policy | 2010 | efficient use and maintenance of the Government vehicle fleet and ships, including strict servicing and maintenance procedures with support for these measures with adequate budget allocations. | x | x |
Bus fleet renewal
| Development Plan 2023 -2026 | 2023 | Additional fire tankers in Koror and Babeldaob to replace old fire engines. | x |
Capacity building - General
| Development Plan 2023 -2026 | 2023 | Priority Programs and Projects (Post Plan, after 2026) • Technical training (in person and virtual) in development planning, construction inspection, maintenance inspections • Technical training on maintenance Strategy: (iii) rehabilitating the existing port in Malakal to increase the land area by acquiring the adjacent fisheries dock, and thereby create a mechanism for seafarer training. Priority Capacity Building Programs and Projects (Post Plan, after 2026) • Training vessel. USD5,000,000 • Seafarer's training. USD60,000/annum Capacity-building support provided. PPUC and other stakeholders have limited capacity to manage the smart grid including SCADA/EMS, BESS, and EV charging infrastructure. Their capacity to manage new power systems and electric mobility infrastructure will be improved. | x | x |
Capacity building and education for disaster preparedness and recovery in transport
| National Disaster Risk Management Framework 2010 | 2010 | It is the responsibility of the NEMO to develop DRM education and awareness programs for use in the formal education system, with the assistance of the MOE and the PCC. The development of such materials and programs should be conducted in close collaboration with the support of its training partners. | x | x |
Data collection and repositories - General
| National Energy Policy | 2010 | In order to monitor the energy profile of the transport system a database of all operational vehicles by class, make and fuel usage will be mandated. | x |
Development of climate change/ low carbon plan/ policy
| High Ambition Coalition COP 26 Leaders' Statement | 2021 | Support ambitious policies to reduce emissions in transport sectors, including to take more ambitious climate action in shipping and aviation. |
Development of transport adaptation/ emergency/ disaster/ recovery plan/ policy
| Climate Change Policy | 2015 | Develop, adopt, and implement a climate/ disaster resilient energy efficient building code | |||||
| National Disaster Risk Management Framework 2010 | 2010 | The NEMO is responsible for ensuring that a National Disaster Management Training Plan is developed in collaboration with national, regional or international training providers and that training materials and programs are developed to support all departments, sectors and agencies to improve their capabilities relative to their designated functions. It is recommended that a training officer should be employed to strengthen the capacity of the NEMO. |
Development of transport plan/ policy
| Climate Change Policy | 2015 | Finalise and launch of "Complete Street Policy" to improve traffic flows, reduce congestion and support alternative transport. | x |
Disaster monitoring
| VNR Report 2024 | 2024 | Continue to build national capacity to identify and analyze hazard and risk data. (Palau Climate Change Policy 2024: Priorities for Disaster Risk Reduction) | |||||
| National Disaster Risk Management Framework 2010 | 2010 | Collate damage assessment reports and prioritize resource allocation to affected areas based on resource availability, access and transportation requirements. |
Disaster notification/ early warning system
| Climate Change Policy | 2015 | Strengthen emergency response systems and early warning systems | |||||
| National Disaster Risk Management Framework 2010 | 2010 | Role of NEC: Issue early warnings through all available communication channels. |
EV - General
| Voluntary National Review 2019 - PLW | 2019 | transition to electric vehicles | x | ||||
| Climate Change Policy | 2015 | Procure and operate fuel efficient vehicles | x |
EV charging infrastructure
| Development Plan 2023 -2026 | 2023 | Three enhanced EV charging infrastructures will be deployed. Each of them consists of 6 EV charges, 15 kWp of solar PV, and 72 kWh of electric battery storage. Additionally, up to 20 individual EV chargers will be installed. | x |
EV in public transport
| VNR Report 2024 | 2024 | To address the triple threats to climate, health, and the environment, a Global Environmental Facility project is being planned to reduce transportation sector emissions using a combination of electric and hybrid-fueled public transport vehicles (including infrastructure support for e-vehicles) and improved walking and biking facilities. | x |
EV in water transport
| VNR Report 2024 | 2024 | Palau's energy roadmap identifies several future options: (iii) battery-powered hydrofoiling boats, an entirely new design technology. | x |
Energy efficient vehicle incentives excl. EVs
| Climate Change Policy | 2015 | Develop and enact legislation to introduce economic instruments that encourage the import and sale of energy efficient vehicles. | x |
Financial instruments to support decarbonisation - General
| Energy Efficiency Action Plan (EEAP) | 2008 | Establish a fund to partially offset the difference in price between four-stroke gasoline outboard or diesel marine engines and two-stroke gasoline outboard engines. | x | x |
Fossil fuel subsidy rationalization
| High Ambition Coalition COP 26 Leaders' Statement | 2021 | Halt inefficient fossil fuel subsidies as soon as possible. |
Hydrogen
| VNR Report 2024 | 2024 | Palau's energy roadmap identifies several future options: (i) replace gasoline with a synthetic variant produced from renewable hydrogen and biomass, (ii) replace gasoline motors with electric motors fueled by green hydrogen, a | x |
Incentives for EVs and components
| Climate Change Policy | 2015 | Develop and enact legislation to introduce economic instruments that encourage the import and sale of energy efficient vehicles. | x |
International cooperation
| VNR Report 2024 | 2024 | The focus on active transport will build on work spearheaded by the NGO PalauWalks, in partnership with Palau Visitor's Authority, PNOC, MHHS, MPII, and the Climate Change Office since 2013, to create walk-friendly environments. | x |
Investment required for specific projects
| Development Plan 2023 -2026 | 2023 | The 16 sector strategies prioritized a total of 75 proposed capital expenditures or development projects. 139 Total plan period capital needs of $396.86 million range from a total of $930,000 in the case of tourism to $143.6 million for marine transport. Other relatively large sector capital requirements are for energy at $101.9 million, education at $38.81, land transport at $38.60 million, and air transport at $37.45 million. All capital projects are listed by sector on the MOF website. | |||||
| Actions For Palau's Future - Medium-Term Development Strategy 2009-2014 | 2009 | Identify total costs of selected services including bus transport, school lunches and building maintenance | x |
National speed law
| Vehicle Legislation | 2017 | No person shall drive a vehicle upon a highway at a speed greater than is reasonable and prudent, having due regard to the traffic, surface and width of the highway and the hazard at intersections and any other conditions then existing. Any person who drives a vehicle upon a highway at a speed in excess of that indicated in this section for the particular location shall be guilty of misdemeanor. Except where otherwise designated by the President, said indicated speeds are as follows: (1) fifteen miles per hour: when passing a school building or the grounds thereof, during the school recess or while children are going to or leaving school during opening or closing hours; when passing a church; when passing public processions or assemblages on or near any highway. (2) twenty miles per hour: in any business or residential district. (3) twenty-five miles per hour: outside of a business or residential district. | x |
Planning to reduce future vulnerabilities and minimizing losses
| Climate Change Policy | 2015 | Undertake site-specific risk assessments and develop risk manmagement plans for vulnerable infrastructure (private, commercial and government, particularly for ports and docks) | x |
Promote active transport
| VNR Report 2024 | 2024 | The focus on active transport will build on work spearheaded by the NGO PalauWalks, in partnership with Palau Visitor's Authority, PNOC, MHHS, MPII, and the Climate Change Office since 2013, to create walk-friendly environments. | x |
Promote preparedness and rapid recovery of transport function
| National Disaster Risk Management Framework 2010 | 2010 | Collate damage assessment reports and prioritize resource allocation to affected areas based on resource availability, access and transportation requirements. |
Public transport improvement - General
| Development Plan 2023 -2026 | 2023 | the government will also examine options to invest in public transportation, with the objective of reducing congestion and CO2 emissions. | x | ||||
| Voluntary National Review 2019 - PLW | 2019 | aspires to complete land transportation infrastructure incorporating sidewalks and public transport and a marine transportation system powered by renewable energy development of public transportation | x | x | |||
| National Energy Policy | 2010 | The establishment of energy efficient public transport system for urban and rural areas with particular emphasis on reducing energy consumed commuting to the new Capitol facilities will be promoted and encouraged. | x | x |
Recycle and circular economy in Transport
| Development Plan 2023 -2026 | 2023 | Establish Advance Recovery Fee & Deposit (ARFD) towards sound material cycle society is developed and a legal framework for at least one problematic waste stream is developed. Waste streams such as end of life vehicles, e-waste, waste tires, etc. | x |
Reference to domestic financing mechanisms
| Actions For Palau's Future - Medium-Term Development Strategy 2009-2014 | 2009 | Reduce costs associated with school transportation -Change bus drivers from full-time to part-time status (short-term measure) -Privatize school bus services through contractual arrangements (medium-term measure). | x |
Renewable energy
| Voluntary National Review 2019 - PLW | 2019 | aspires to complete land transportation infrastructure incorporating sidewalks and public transport and a marine transportation system powered by renewable energy a new fleet of vessels for domestic transport is envisioned using a combination of sail, solar, and coconut oil | x | x | |||
| Climate Change Policy | 2015 | Renewable energy strategy | |||||
| National Energy Policy | 2010 | Renewable energies will therefore be promoted so that such energy will provide a minimum of 20% of electrical energy generated in Palau the end of 2020. |
Road infrastructure expansion
| Palau National Master Development Plan | 1995 | Access roads constructed | x |
Road infrastructure, signage and furniture improvement
| Development Plan 2023 -2026 | 2023 | Priority Programs and Projects (2023 to 2026): • Babeldaob Intrastate Road improvements • Desing of Koror-Airai road repairs • Climate-proofing of low-lying roads and causeways. • Replacement of culverts on Malakal and Meyuns causeways | x | ||||
| Climate Change Policy | 2015 | Finalise and launch of "Complete Street Policy" to improve traffic flows, reduce congestion and support alternative transport. | x |
Shipping efficiency improvements
| Development Plan 2023 -2026 | 2023 | Priority Programs and Projects (2023 to 2026) • Feasibility study followed by the investment and operation of a government vessel Strategy: (i) replacing a less efficient private sector fleet of small vessels servicing the islands with one larger government-owned and operated ship. | x | ||||
| Energy Act (RPPL No. 9-56) | 2014 | Introduce efficiency standards for buses and marine vessels that are used in private tourism enterprises, and for all other vehicles and vessels in the Republic. | x | x | |||
| Palau Energy Act (Public Law No. 9-54 of 2014) | 2014 | The Energy administration shall introduice efficiency standards for the road and marine fleets of the Government of Palau and introduce efficiency standards for buses and marine vessels that are used in private tourism and for all other vehicles and vessles. The Energy administration shall assess the following in the Annual Energy Report: - Progress towards the Government green fleet efficiency standards - The efficiency of marine vessels used by the operators in the tourism industry | x | ||||
| Energy Efficiency Action Plan (EEAP) | 2008 | Decrease use of number of two-stroke gasoline outboard marine engines | x |
Shipping fuels
| VNR Report 2024 | 2024 | Palau's energy roadmap identifies several future options: (i) replace gasoline with a synthetic variant produced from renewable hydrogen and biomass, (ii) replace gasoline motors with electric motors fueled by green hydrogen, a | x |
Shipping improvement - General
| Palau National Master Development Plan | 1995 | Malakal harbor expanded Pier redeveloped Harbor repairs Navigation aids upgraded | x |
Shipping port infrastructure improvements
| Palau National Master Development Plan | 1995 | Bay facilities improved for commercial bulk port | x |
Solar energy
| VNR Report 2024 | 2024 | Palau encourages energy efficiency and conservation through:Installing solar lighting on roadways. The airport solar farm, Palau's first grid-connected solar installation at the intersection of SDGs 7, 9, and 17. The Government of Japan funded this project in 2011 which became the model for several projects that have followed. | x | x | |||
| Development Plan 2023 -2026 | 2023 | Palau plans to increase solar power production up to 52 gigawatt-hour (GWh) – 55 GWh per year. The EV charging stations will create daytime power consumption to match solar power production. They can also function as load-shifting batteries by providing power to the EVs during the daytime. | x | ||||
| Voluntary National Review 2019 - PLW | 2019 | a new fleet of vessels for domestic transport is envisioned using a combination of sail, solar, and coconut oil | x | x |
Transport Laws and Regulations- General
| Vehicle Legislation | 2017 | Vehicle Legislation | x | ||||
| Palau National Master Development Plan | 1995 | civil aviation code drafted | x |
Transport asset management - General
| Palau National Infrastructure Investment Plan 2021-2030 | 2021 | Melekeok to Ngardmau Road - Paving of three existing dirt road sections, including rehabilitation of existing bridges, and construction of drainage structures Capital Repairs to Compact Road, Airai to Ngarchelong Major repairs to existing road bridges Rehabilitation of Malakal port development | x | x | |||
| National Disaster Risk Management Framework 2010 | 2010 | Reconstruction: Major capital works to restore transport and water reticulation systems. | x |
Transport demand management - General
| Climate Change Policy | 2015 | Finalise and launch of "Complete Street Policy" to improve traffic flows, reduce congestion and support alternative transport. | x | ||||
| National Energy Policy | 2010 | travel demand management through smarter planning | x |
Transport infrastructure modification to reduce climate risks
| Palau National Infrastructure Investment Plan 2021-2030 | 2021 | Climate proofing of low lying roads and causeways and paving priority unpaved roads - Airai to Koror | x |
Transport institutional reform
| Palau National Master Development Plan | 1995 | National road building and maintenance program established | x |
Vehicle efficiency standards
| Climate Change Policy | 2015 | Procure and operate fuel efficient vehicles Develop and enact legislation to introduce economic instruments that encourage the import and sale of energy efficient vehicles. | x | ||||
| Palau NDC | 2015 | Currently there is a pending national legislation that would mandate the use and commercial sale of four stroke outboard motor engines only to reduce emissions. | x | x | |||
| Energy Act (RPPL No. 9-56) | 2014 | Introduce efficiency standards for buses and marine vessels that are used in private tourism enterprises, and for all other vehicles and vessels in the Republic. “Government green fleet efficiency standards” means the fuel emissions standards that the Energy Administration establishes for the fleets of relevant government agencies. | x | x | |||
| Palau Energy Act (Public Law No. 9-54 of 2014) | 2014 | The Energy administration shall introduice efficiency standards for the road and marine fleets of the Government of Palau and introduce efficiency standards for buses and marine vessels that are used in private tourism and for all other vehicles and vessles. The Energy administration shall assess the following in the Annual Energy Report: - Progress towards the Government green fleet efficiency standards - The efficiency of marine vessels used by the operators in the tourism industry | x | x | |||
| National Energy Policy | 2010 | significantly increasing vehicle efficiency | x |
Vehicle improvement - General
| Palau Energy Conservation Strategy (PECS) | 2007 | Preferential purchasing of energy efficient vehicles and equipment | x |
Vehicle inspection and maintenance
| National Energy Policy | 2010 | efficient use and maintenance of the Government vehicle fleet and ships, including strict servicing and maintenance procedures with support for these measures with adequate budget allocations. | x | x |
Vehicle restrictions (import, age, access, sale, taxation)
| Climate Change Policy | 2015 | Develop and enact legislation to introduce economic instruments that encourage the import and sale of energy efficient vehicles. | x | ||||
| National Energy Policy | 2010 | An import tax scheme will be developed and introduced that provides incentives for the importation of efficient equipment and discourages the import of inefficient appliances, vehicles and machinery | x |
Vehicle scrappage scheme
| Development Plan 2023 -2026 | 2023 | Establish Advance Recovery Fee & Deposit (ARFD) towards sound material cycle society is developed and a legal framework for at least one problematic waste stream is developed. Waste streams such as end of life vehicles, e-waste, waste tires, etc. | x |
Vessel scrappage and retrofit
| VNR Report 2024 | 2024 | Phasing out two-stroke outboard gasoline engines on boats | x |
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