Federated States of Micronesia’s Third Nationally Determined Contribution (NDC 3.0)

4.1 History & Traditional Knowledge ..........................................................................11

4.2 Geography ...............................................................................................................12

4.3 Vulnerability to Climate Change ............................................................................13

4.4 Demographic Profile .............................................................................................. 15

4.5 Political and Governance Structure ......................................................................17

4.6 Land Ownership and Tenure .................................................................................20

4.7 Economy ..................................................................................................................20

4.8 Economic Sectors ...................................................................................................21

4.9 National and Regional Policies and Plans............................................................. 22

4.10 NDC 3.0 Enhancement Process .............................................................................24

4.11 Approach to NDC 3.0 Preparation ........................................................................25

4.12 Limitations and Challenges....................................................................................25 5. MITIGATION .....................................................................................................................26

5.1 Energy ......................................................................................................................26

5.2 Waste .......................................................................................................................31

5.3 Agriculture, Forestry and Other Land Use (AFOLU) .............................................34

5.4 Industrial Process and Product Use (IPPU)........................................................... 35 6. ADAPTATION....................................................................................................................37

6.1 Food ......................................................................................................................... 37

6.2 Water .......................................................................................................................39

6.3 Biodiversity..............................................................................................................41

6.4 Ocean.......................................................................................................................43

6.5 Public Health ...........................................................................................................46

6.6 Climate Resilient Infrastructure ............................................................................48

6.7 Disaster Risk Management ....................................................................................50 7. LOSS AND DAMAGE ........................................................................................................52 8. MEANS OF IMPLEMENTATION .......................................................................................53

8.1 Summary - Measures & Conditionality .................................................................53 3

8.2 Resource Requirements ......................................................................................... 56

8.3 Cross-Cutting Enablement .....................................................................................57

8.4 GEDSI .......................................................................................................................58 9. Annexure.......................................................................................................................... 60

9.1 Annexure 1: Information necessary for clarity, transparency, and understanding of FSM’s NDC ............................................................................................. 60 4 Table List Table 1: Mitigation Priority Area – Electricity ........................................................................27 Table 2: Mitigation Priority Area – Transport .......................................................................29 Table 3: Mitigation Priority Area – Energy - Others (Cooking).............................................30 Table 4: Mitigation Priority Area – Waste..............................................................................32 Table 5: Mitigation Priority Area – AFOLU ............................................................................34 Table 6: Mitigation Priority Area – IPPU ................................................................................36 Table 7: Adaptation Priority Area – Food ..............................................................................38 Table 8: Adaptation Priority Area – Water ............................................................................40 Table 9: Adaptation Priority Area – Biodiversity...................................................................42 Table 10: Adaptation Priority Area – Ocean .........................................................................44 Table 11: Adaptation Priority Area – Public Health .............................................................. 47 Table 12: Adaptation Priority Area – Climate Resilient Infrastructure ............................... 49 Table 13: Adaptation Priority Area – Disaster Risk Management .......................................50 Table 14: Measures – Mitigation & Adaptation ....................................................................53 Figure List Figure 1: FSM’s Total GHG Emissions by Sectors .................................................................10 Figure 2: FSM Map ..................................................................................................................13 Figure 3: FSM Population by Age and Sex, 2024 ..................................................................16 Figure 4: FSM Institutional Coordination ..............................................................................19 Figure 5: Municipal Solid Waste Composition by Weight (2021) ........................................32 Figure 6: Adaptation & Mitigation Fund Requirement till 2035 (Source: National & State- level IDPs) ................................................................................................................................ 56 Figure 7: Sectors’ Fund Requirement till 20235 (Source: National & State-level IDPs) .....57 5 Abbreviations and Acronym ADB Asian Development Bank AFOLU Agriculture, Forestry and Other Land Use ARISE Access and Renewable Increase for Sustainable Energy BBNJ Biodiversity Beyond National Jurisdiction Treaty BESS Battery Energy Storage System BUR Biennial Update Report CDL Container Deposit Legislation CFCSP Climate Finance Capacity Support Programme COFA Compact of Free Association COM-FSM College of Micronesia COP Conference of the Parties (to the UNFCCC) CROP Council of Regional Organisations in the Pacific DECEM Department of Environment, Climate Change and Emergency Management DRE Distributed Renewable Energy DTC&I Department of Transport, Communication & Infrastructure EEZ Exclusive Economic Zone ENSO El Niño–Southern Oscillation EPA Environmental Protection Agency ESWG Energy Sector Working Group ETWG Energy Technical Working Group EU European Union EV Electric Vehicle FADs Fish Aggregating Devices FESRIP Framework for Energy Security and Resilience in the Pacific FSM Federated States of Micronesia FSM.SE Federated States of Micronesia Sustainable Energy Project GEDSI Gender Equality, Disability, and Social Inclusion GEF Global Environment Facility GHG Greenhouse Gas GIS Geographic Information System GCF Green Climate Fund HFCs Hydrofluorocarbons IDPs Infrastructure Development Plans IPCC Intergovernmental Panel on Climate Change IPPU Industrial Processes and Product Use IUU Illegal, Unreported, and Unregulated (fishing) JICA Japan International Cooperation Agency LNOB Leaving No One Behind MoU Memorandum of Understanding MEPS Minimum Energy Performance Standards MPSBEE Micronesia Public Sector Buildings Energy Efficiency Project MRV Monitoring, Reporting, and Verification MSPs Marine Spatial Plans NBSAP National Biodiversity Strategy and Action Plan 6 NDA National Designated Authority (for GCF) NDC Nationally Determined Contribution NEP National Energy Policy NISSAP National Invasive Species Strategy & Action Plan PA Protected Area PANPF Protected Areas Network Policy Framework PET Polyethylene Terephthalate (plastic bottles) PMO Project Management Office PMU Program Management Unit PP Public-Private (context: PPP, if used later) PPA Pacific Power Association PIFS Pacific Islands Forum Secretariat PROPER Pacific Regional Oceanscape Program Economic Recovery/Resilience PT Public Transportation PUC Pohnpei Utilities Corporation PUF Plant Utilization Factor REDP Renewable Energy Development Project RPNDC Regional Pacific Nationally Determined Contribution R&D Resources and Development SDG Sustainable Development Goal SDP Strategic Development Plan SEDAP Sustainable Energy Development and Access Project SLCPs Short-Lived Climate Pollutants SMART Specific, Measurable, Achievable, Relevant, Time-bound SPC Pacific Community (Secretariat of the Pacific Community) SPREP Secretariat of the Pacific Regional Environment Programme TTPI Trust Territory of the Pacific Islands T&D Transmission and Distribution UNDP United Nations Development Programme UNFCCC United Nations Framework Convention on Climate Change USAID United States Agency for International Development USP University of the South Pacific VMS Vessel Monitoring System 7 1. FOREWORD 8 2. ACKNOWLEDGMENTS The Government of the Federated States of Micronesia (FSM) extends its sincere appreciation to all parties who contributed to the successful development of its updated Nationally Determined Contribution (NDC 3.0). This national effort was led by the Department of Environment, Climate Change & Emergency Management (DECEM) under the guidance of Secretary Honorable Andrew R. Yatilman. We gratefully acknowledge the invaluable cooperation of our national and state-level stakeholders throughout the extensive consultation process. We extend profound gratitude to the Governments of Australia, New Zealand, Germany, the United Kingdom, and the European Union, whose funding through the Regional Pacific NDC Hub made this work possible. We also thank the Pacific Community (SPC) team (Mr Ron Simpson, Dr Noim Uddin, Ms Sadie Tunaulu and Mr Amit Singh) for their steadfast guidance and support. Finally, special appreciation is extended to pManifold Business Solutions Ltd. for their dedicated technical contributions. The Government of FSM acknowledges the collective effort that culminated in this critical national document. 9 3. EXECUTIVE SUMMARY The Federated States of Micronesia (FSM) submits its “Third Nationally Determined Contribution (NDC 3.0)” under the Paris Agreement, reaffirming its commitment to the 1.5°C global goal and its national vision of reaching net-zero emissions by 2050. Building on earlier submissions, this NDC expands sectoral coverage, strengthens mitigation and adaptation measures and mentions loss and damage as a cross-cutting national priority. FSM’s NDC 3.0 reflects its longstanding record of climate leadership. The country was among the earliest to ratify the Kigali Amendment, the first to sign the Biodiversity Beyond National Jurisdiction Treaty, and is a founding member of the Global Methane Pledge. Domestically, this NDC is aligned with national and state strategies such as the National Energy Policy 2024–2050, the Strategic Development Plan 2025–2034, and state- level Smart Plans, ensuring coherence. Mitigation Pathway: FSM’s mitigation strategy prioritizes the Electricity, Transport, Waste, AFOLU (agriculture, forestry, and other land use), and IPPU (Industrial Processes and Product Use) sectors. In 2018, emissions from electricity, transport, and solid waste stood at approximately 170 ktCO₂e. Without intervention, these are projected to rise to 222 ktCO₂e by 2030 and to 231 ktCO₂e by 2035, representing a growth of 31% and 35%. With the implementation of identified measures, however, FSM can bend this baseline trajectory, reducing emissions to 153 ktCO₂e in 2030 and 150 ktCO₂e in 2035, while avoiding ~69 ktCO₂e in 2030 and ~82 ktCO₂e in 2035 compared to the Business-as-Usual scenario. Key mitigation measures include: ▪ Achieving 70% renewable electricity by 2030, and 80% by 2035 ▪ Ensuring universal electricity access and clean cooking adoption by 2035; ▪ Transitioning towards electric vehicles; and ▪ Advancing low-emission practices across waste, AFOLU and IPPU sectors Figure 1: FSM’s Total GHG Emissions by Sectors1 Adaptation and Resilience: 10 Adaptation remains equally central to FSM’s climate strategy. The NDC 3.0 outlines measures to: ▪ Strengthen food and water security; ▪ Restore mangroves and coastal ecosystems; ▪ Expand Marine Protected Areas; ▪ Conserve 30% of terrestrial ecosystems; and 50% of marine resources by 2035; ▪ Climate-proof critical infrastructure, including roads, ports, and airports; and ▪ Address growing public health risks from vector-, water-, and food-borne diseases. All adaptation measures are designed with gender equality, disability, and social inclusion (GEDSI) at their core, ensuring that vulnerable groups are protected and empowered in the transition. Recognizing the irreversible impacts already being felt, loss and damage are now fully embedded as a national priority. Means of Implementation: Delivering these targets are conditional to sustained international support in the form of climate finance, technology transfer, and capacity enhancement. FSM will operationalize its NDC 3.0 through its Infrastructure Development Plans (2025–2034), state-level Smart Plans, and partnerships with bilateral, multilateral, and regional initiatives and funding, including the Green Climate Fund. FSM’s NDC 3.0 demonstrates both urgency and ambition. While the country’s emissions are negligible on a global scale, it is taking bold actions to transform its energy systems, safeguard its people and ecosystems, and chart a resilient, sustainable future. At the same time, FSM calls for stronger global solidarity to ensure that the people of Micronesia and all Small Island Developing States can survive and thrive in the face of a rapidly changing climate. 4. NATIONAL CIRCUMSTANCES The Federated States of Micronesia (FSM) is an independent sovereign island nation composed of four states - Yap, Chuuk, Pohnpei, and Kosrae – stretching across the western Pacific Ocean. The country comprises approximately 607 islands with 702 sq. km, dispersed across an Exclusive Economic Zone (EEZ). FSM lies about 2,700 km north of eastern Australia1 and is among the world’s most geographically dispersed nations.

4.1 History & Traditional Knowledge FSM has a rich history of human settlement dating back around 4,000 years. Over the centuries, the islands came under successive colonial administrations: Spain in the 16th century, German in the late 19th century, and Japan in 1914. Following World War II, FSM became part of the United Nations Trust Territory of the Pacific Islands (TTPI), under U.S. 1 Climate, Climate Variability and Change Of FSM. Available At Http://Www.Globalislands.Net/Userfiles/FSM16.Pdf 11 Administration. On May 10, 1979, the districts of Yap, Chuuk, Pohnpei, and Pohnpei’s then sub island, Kosrae, ratified a constitution, establishing the Federated States of Micronesia. FSM achieved independence in 1986 under the Compact of Free Association (COFA) with the United States, which was amended in 2004 and renewed in 2024, ensuring long-term economic assistance for 20 years. Each state maintains its own distinct culture, language, and traditions, while sharing common values rooted in extended family and clan systems. FSM recognizes eight major indigenous languages, with English serving as the official language of government and commerce. Traditional knowledge – in farming, fishing, medicine, navigation, and sustainable use of forests, reefs, and oceans – remains central to community life. However, challenges persist, including declining intergenerational transmission, misappropriation, and inequitable benefit-sharing2. Strengthening the protection, revival, and integration of traditional knowledge with modern practices is essential for sustainable resource management and climate resilience.

4.2 Geography FSM’s geography is diverse, ranging from high volcanic islands to low-lying atolls: ▪ Yap: Volcanic islands and 134 atolls. ▪ Chuuk: Most populous state, with over 290 islands. ▪ Pohnpei: Home to FSM’s largest islands and the national capital, Palikir. ▪ Kosrae: A single high volcanic island, notable for its rivers and absence of outer islands. This geographic diversity underpins FSM’s cultural richness but also heightens its exposure to climate risks, particularly for low-lying atolls and coastal communities. 2 The Role of Customary Law in Access and Benefit-Sharing and Traditional Knowledge Governance: Perspectives from Andean and Pacific Island Countries. Available At https://www.wipo.int/documents/1314251/3305698/customary_law_abs_tk.pdf 12 Figure 2: FSM Map5

4.3 Vulnerability to Climate Change Climate Context FSM, situated near the equator in the western Pacific, experiences a tropical maritime climate with consistently high temperatures (26.5°C–27°C) and extreme humidity. Rainfall is the highest globally, ranging from ~3,100 mm in Yap to over 5,150 mm in Kosrae, and even higher levels in mountainous regions. Seasonal variability is shaped by the Intertropical Convergence Zone (ITCZ), trade winds, and monsoon activity, with a wet season from May to November and a drier season from December to April3. The El Niño–Southern Oscillation (ENSO) strongly influences rainfall, with El Niño events bringing drought and La Niña events causing heavy rains, floods, and landslides, particularly in vulnerable islands such as Yap4. 3 Micronesia, Fed. Sts. - Climatology | The FSM Change Knowledge Portal. Available at https://climateknowledgeportal.worldbank.org/country/micronesia-fed-sts/climate-data-historical 4 FSM Country Report_Updated.pdf. Available at https://www.rccap.org/uploads/files/7819548b-0f20-4c25-a21c- 4c1b7d57407a/FSM%20Country%20Report_Updated.pdf 13 Observed Climate Change Trends Air Temperature: The number of hot days has increased while cool nights have decreased across FSM. Though the surface air temperatures have warmed less than the global average, these temperatures have increased by ~1.6°F (0.9°C) in western FSM, covering all of Yap and the western islands of Chuuk, and by ~1.4°F (0.8°C) in eastern FSM including Kosrae, Pohnpei, and the eastern islands of Chuuk5. Rainfall: Historical records since 1960 show variability, with declining wet season in rainfall without a statistically significant long-term trend. Annual and wet season rainfall has declined in Pohnpei (May to October) contributing to more frequent droughts since the 1950s6. Sea Surface Temperature: Average sea surface temperatures across FSM have increased by 0.45°F (0.25°C) per decade since 1982, driving coral reef bleaching. Ocean Chemistry: Increasing acidification threatens reef growth and marine biodiversity. Sea Level: Sea-level is rising rapidly, with 19 cm increase near Pohnpei over the past 30 years7, one-third of which occurred in the last 25 years8. Cyclones: FSM lies in the world’s most active tropical cyclone basin, with storms causing severe damage to infrastructure, crops, and freshwater systems. Projected Climate Change Risks Rising Air Temperatures: Projected increase of ~1.3°F (0.7°C) by 2030 (relative to 1986– 2005 levels) with 1.5°C global warming and up to 3.4°F (1.9°C)9, depending on global warming scenarios. Extreme Rainfalls: Up to 12% increase by 2030 and 23% by 209010, raising flood and landslide risks. Warm Sea Surface Temperature: Annual bleaching project by 2040, under high-warming scenarios 5 Climate Change in the Federated States of Micronesia: Indicators and Considerations for Key Sectors . Available at https://www.eastwestcenter.org/sites/default/files/2023-07/climate-change-in-fsm-pirca-2023-low-res.pdf 6 Changes in the FSM climate. Available at https://ccprojects.gsd.spc.int/fiji/ 7 Sea Level Summary for Pohnpei, Micronesia. Available at https://sealevel.nasa.gov/internal_resources/531/Pohnpei_Micronesia_combined.pdf 8 Sea Level Change, Historical. Available at https://climateknowledgeportal.worldbank.org/country/micronesia-fed- sts/sea-level-historical 9 FSM Country Report_Updated.pdf. Available at: https://www.rccap.org/uploads/files/7819548b-0f20-4c25-a21c- 4c1b7d57407a/FSM%20Country%20Report_Updated.pdf?utm_source 10 Climate, climate variability and change of FSM . Available at http://www.globalislands.net/userfiles/FSM16.pdf 14 Ocean Acidification: Expected to severely limit reef growth by century’s end. Rising Sea-Level: Projected 20cm rise by 2050 and 74 cm by 2100 under a 3.0°C warming scenario11, amplifying risks of saline intrusion, wave-driven flooding, cyclone and tsunami-induced storms, and coastal erosion. Further, wave heights are projected to decrease between December and March, while during June to September they may become more predominantly directed from the south12. Increased Intensity of Cyclones: Fewer in number but more intense, with stronger winds and heavier rainfall. Overall Vulnerability FSM’s vulnerability is shaped by its geography, reliance on natural resources, and dispersed population. Low-lying atolls face existential threats from sea-level rise, saline water intrusion, and storm surges, while shifts in rainfall and warming temperatures undermine water security, food production, and public health. Coral reef degradation further erodes coastal protection and fisheries. Collectively, these factors place FSM among the world’s most climate-vulnerable nations.

4.4 Demographic Profile FSM’s population in 2024 is estimated at 113,16013, with a sex ratio of 1,013 females per 1,000 males and a density of 161 people per km². Figure 2 indicates the gender disaggregated data in FSM for all age groups with a declining trend in population as the age increases for both males and females. Gender dynamics are shifting, with women increasingly engaged in natural resource management, agriculture, forestry, and fisheries, contributing to food security and resilience. Women are also well represented in managerial roles, though leadership positions remain male-dominated. The population is projected to decline slightly to 128,000 by 2054, peak at 133,000 around 2075, and stabilize near 128,00014. Urbanization remains modest at 23% (2023). 11Sea Level Summary for Pohnpei, Micronesia . Available at https://sealevel.nasa.gov/internal_resources/531/Pohnpei_Micronesia_combined.pdf 12 Changes in the FSM climate. Available at https://ccprojects.gsd.spc.int/fiji/ 13 World Population Prospects 2024: Summary of Results. Available at https://population.un.org/wpp/assets/Files/WPP2024_Summary-of-Results.pdf 14 Ibid. 15 Figure 3: FSM Population by Age and Sex, 202415 Climate Change-related Impact FSM faces intensifying climate-driven risks that exacerbate social vulnerabilities and may lead to increased population mobility and relocation. Coastal and atoll communities, many situated just 1–2 meters above sea level, are particularly exposed to sea-level rise, drought, coastal erosion, and intensified storms. Climate shocks are already eroding household assets, threatening food security, and undermining livelihoods from farming and fishing. These pressures heighten poverty risks and may disrupt cultural practices closely tied to land and marine resources. Over time, such vulnerabilities are expected to drive greater climate-related mobility and relocation, with FSM already recording net out-migration of 1,104 in 2024. For women, climate change adds another layer of vulnerability. Women working in institutions often face limited resources, weak gender mainstreaming, and competing cultural norms. Strengthening women’s participation in climate governance is therefore essential to building resilience. At the same time, expanding women’s roles in agriculture, forestry, and fisheries can enhance food security and strengthen the benefits derived from subsistence livelihoods. 16

4.5 Political and Governance Structure National and State Governance FSM is governed under the Declaration of Rights and Constitution, which provides for three branches of government at the national level: ▪ Executive, led by the President and Cabinet; ▪ Legislature is vested in the Congress; and ▪ Judiciary is independent of the other branches. The Constitution also recognizes the importance of integrating traditional political systems into modern governance. Each of the four states has its own constitution and operates through executive, legislative, and judicial branches. State governments oversee governance of land (except in the national capital, Palikir), coastal resources up to 12 nautical miles, health, education, water, and roads. A unique feature exists in Yap, where traditional leaders form a fourth branch of government. Land tenure varies across states with Yap and Chuuk having large areas of land and marine systems under private ownership by families and clans. The national government retains authority over offshore marine resources (beyond 12 nautical miles), foreign affairs, immigration, and international treaty obligations. This creates a multi-layered governance system, where both national and state authorities share responsibility for addressing climate change. Climate Change Governance and Institutional Arrangements Climate change governance is handled by the Department of Environment, Climate Change and Emergency Management (DECEM), which oversees national climate change policy, environmental management, and disaster risk response. DECEM also serves as the national focal point for the Vienna Convention on Ozone Layer Protection, the Montreal Protocol, and the Global Environment Facility (GEF), and acts as the executing entity for the Adaptation Fund, with the Secretariat of the Pacific Regional Environment Programme (SPREP) as implementing agency. Other key institutions include: a. The Department of Foreign Affairs (DFA): Represents FSM in international negotiations and serves as the focal point for multilateral climate agreements. b. The Department of Finance and Administration (DoFA): Hosts the National Designated Authority (NDA) for the Green Climate Fund (GCF), ensuring alignment of climate finance with national priorities. c. The Department of Resources and Development (DoRD): Works with DECEM and state governments to promote climate-smart agriculture, sustainable fisheries, 17 and renewable energy development. d. The Department of Transportation, Communication and Infrastructure (DTC&I): Leads disaster preparedness and long-term adaptation planning for climate resilience in transportation and energy infrastructure15. This framework provides a strong foundation, enabling FSM to align financing with implementation in ways that deliver maximum impact. 15 Micronesia. National Communication (NC). NC 3. Biennial Update Report (BUR). BUR 1. Available at https://unfccc.int/sites/default/files/resource/NC3%20BUR1%20MICRONESIA%20UNFCCC.pdf 18 Office of the President Overseas Development Assistance (ODA) Dept. of Environment, Dept. of Transportation, Climate Change, & Dept. of Resource & Dept. of Foreign Affairs Dept. of Finance Comm, and Emergency Development (R&D) (DFA) Infrastructure (TC&I) Management (DECEM) Green Climate Fund Environment Climate Emergency Management Agriculture Transport Multilateral (GCF) NDA Global Environment Adaptation Disaster Preparedness Energy Infrastructure Adaptation Fund (AF) Facility (GEF) Focal Point Disaster Recovery & Biodiversity Mitigation Marine Communications Response Waste Loss & Damage Statistics National Ozone Unit Tourism (NOU) Trade & Investment Figure 4: FSM Institutional Coordination 19

4.6 Land Ownership and Tenure Land is a vital cultural and economic asset in FSM, governed primarily by customary clan and family-based tenure systems. Constitutionally, only FSM citizens may own land, while non-citizens may lease property for limited periods. Most land is owned either communally (especially lineage land in Chuuk, Kosrae, and Yap) or by single households for agricultural purposes. Land rights are strongly protected by both tradition and law16 making land tenure a critical factor in climate adaptation and relocation planning. Current land ownership issues hinder overall infrastructure development in FSM, including tourism facilities and solar power plant projects.

4.7 Economy FSM’s economy is highly dependent on subsistence activities, government services, and external financial assistance. Government spending is largely supported by U.S. grants under the Compact of Free Association, remains a key driver of economic stability17. In 2023, FSM’s nominal GDP per capita was approximately USD 4,084, up from about USD 3,835 in 202218. The services sector drove much of the economy, accounting for around 69.2% of GDP19, while agriculture, forestry, and fishing contributed about 23.3%20, and industry roughly 5%21. FSM’s GDP declined by 2.9% in 2022, largely due to COVID-19 related disruptions such as reduced mobility, tourism, and supply chain issues but began to recover with growth of 0.5% in 2023 and 0.7% in 202422. Inflation was 6.2% in 202323, mainly from external supply shocks and rising import costs. COVID-19 had pronounced impacts throughout FSM, especially for outer islands, where access to goods, services, and markets was constrained. Post-COVID recovery has been incremental, and climate change compounds economic risk: severe weather, cyclones, and coastal impacts damage infrastructure, disrupt agriculture and fisheries, and drive migration. The GDP per capita trend shows cautious improvement, but maintaining and 16 PROPERTY.pdf . Available at https://fsmlaw.org/fsm/decisions/digest/pdf/PROPERTY.pdf 17 Federated States of Micronesia: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Federated States of Micronesia. Available at https://www.imf.org/en/Publications/CR/Issues/2024/03/04/Federated-States-of-Micronesia-2023-Article-IV- Consultation-Press-Release-Staff-Report-and-545538 18 Macrotrends. Available at https://www.macrotrends.net/global-metrics/countries/fsm/micronesia/gdp-per- capita 19 Services, value added (% of GDP) - Micronesia, Fed. Sts. Available at https://data.worldbank.org/indicator/NV.SRV.TOTL.ZS?locations=FM 20 Agriculture, forestry, and fishing, value added (% of GDP) - Micronesia, Fed. Sts. Available at https://data.worldbank.org/indicator/NV.AGR.TOTL.ZS?locations=FM 21 Industry (including construction), value added (% of GDP) - Micronesia, Fed. Sts. Available at 22 GDP growth (annual %) - Micronesia, Fed. Sts. Available at https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?locations=FM 23 Federated States of Micronesia: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Federated States of Micronesia. Available at https://www.elibrary.imf.org/view/journals/002/2024/066/article-A001-en.xml 20 accelerating progress depends on aligning growth with resilient, low-emission development.

4.8 Economic Sectors

4.8.1 Fisheries FSM’s EEZ of approximately 3 million km², supports one of the world’s most productive tuna fisheries. The sector contributes over US$70 million annually in licensing and direct harvesting revenues, out of a total sector value of US$330 million. More than 150,000 tonnes of tuna are harvested annually, with foreign fleet accounting for over 70% of the sector’s economic value24. Fisheries are central to both export earnings and domestic food security, sustaining the livelihoods of over 70% of households. However, climate change poses severe threats: o Rising ocean temperatures and acidification are damaging coral habitats. o Shifts in tuna migration patterns are reducing the productivity of key fishing grounds.

4.8.2 Tourism Tourism plays a modest but meaningful role in FSM’s economy. In 2019, the sector generated US $18 million in revenues and directly employed about 2.5% of the workforce. Visitor arrivals 18,019, with 60% to Pohnpei, 28% of visitors arrived in Chuuk, and 6% each to Kosrae, and Yap. After several years of decline (2017 and 2019), arrivals25 have rebounded. For example, Yap recorded 1,825 international stayover visitors between January-August 2024, nearly double the 945 visitors in 2023, a 93% increase26. FSM’s rich cultural heritage and natural beauty present significant potential for tourism growth across its states, including Yap, Chuuk, Pohnpei and Kosrae. However, weak environmental regulations pose risks to sustainable tourism development. Although each state has established Environmental Protection Acts, their effectiveness varies, and currently, none of the states has a building code. This regulatory gap raises concerns, especially given both rising urbanization and the development of new tourism infrastructure. Furthermore, the lack of regulations governing tourist access to fragile 24 FSM-National-Oceanic-Fisheries-Investment Policy-2021-2026 . Available at https://norma.fm/wp- content/uploads/2024/03/FSM-NATIONAL-OCEANIC-FISHERIES-INVESTMENT-POLICY-2021-2026-final-draft-as-of- 9.1.2021.pdf 25 Annual Visitor Arrivals of Non-FSM Citizen by Purpose: FSM 2014-2019. Available at https://stats.gov.fm/topics/social/international-visitors-arrival/ 26 Visitor Arrivals Double, Yap Hosting Next Micronesia Expo, Coral Geographer Cruise Visit . Available at https://southpacificislands.travel/visitor-arrivals-double-yap-hosting-next-micronesia-expo-coral-geographer- cruise-visit/ 21 historical sites increases the risk of damage as visitors’ numbers rise27. The tourism sector is increasingly vulnerable to climate change. Rising sea levels, worsening storms, coral bleaching, and coastal erosion threaten key attractions and infrastructure that are vital for tourism. FSM’s Third National Communication to the UNFCCC highlights that these climate related threats could severely impact tourism assets, such as beaches, reefs, and cultural sites, ultimately undermining the economic benefits derived from tourism-related activities. Compounding these challenges are water supply shortages, inadequate sanitation, and persistent waste management issues, which further constrain FSM’s ability to expand tourism sustainably. Therefore, transitioning the tourism sector toward energy-efficient systems and renewable technologies is a critical step in advancing the decarbonization of the industry across all four FSM States.

4.9 National and Regional Policies and Plans FSM has established a robust institutional and policy framework to address climate change, disaster risk reduction, energy transition, gender equality, and sustainable development. As a party to major international agreements, including the UNFCCC, Kyoto Protocol, Montreal Protocol, and the Paris Agreement – FSM is committed to ambitious climate action. Its Updated Nationally Determined Contribution (NDC) for 2022 aims to reduce CO₂ emissions by 65% below 2000 levels by 2040, ensure 100% energy access by 2030, achieve 70% renewable energy (85% by 2040)28, and attain net zero status by 2050. To operationalize these goals, FSM has enacted several key policies and laws29: • National Energy Policy 2024–2050: Led by the Department of Resources and Development’s Energy & Water Division, this policy outlines ambitious targets, including achieving 70% renewable electricity by 2030 and progressing to 100% by 2050. It emphasizes phasing out inefficient biomass-based cooking, expanding clean electric transport, and ensuring universal energy access. The policy, endorsed in August 2024 and formally launched in May 2025, is implemented nationally by the Division of Energy, which facilitates coordination and manages standards and projects. State utilities (PUC, CPUC, YSPSC, and KUA) execute delivery. • Energy Master Plans (2018): These state-level frameworks, developed under the Energy Sector Development Project, offer 20-year roadmaps for infrastructure investment, renewable energy expansion, women’s empowerment, and health outcomes. The plans inform NDC targets and have led to the implementation of donor- funded solar PV systems and energy efficiency projects. 27 Federated States of Micronesia: Pacific Tourism Sector Snapshot | November 2021. Available At Https://Www.Pacificpsdi.Org/Assets/Uploads/Psdi-Tourismsnapshot-Fsm.Pdf 28 Updated Nationally Determined Contribution of The Federated States of Micronesia for The Period Through 2030. Available At Https://Unfccc.Int/Sites/Default/Files/Ndc/2022- 10/Updated_Ndc_Of_The_Federated_States_Of_Micronesia.Pdf 29 Climate Change Legislation and Policies. Available At Https://Fsm-Data.Sprep.Org/Data-Dashboard/Climate- change-legislation-and-policies 22 • Strategic Development Plan (SDP) 2024-2043: Coordinated by the Department of R&D, this overarching framework outlines priorities for economic growth, infrastructure, climate resilience, and social development, aligning national objectives with global commitments. • Infrastructure Development Plans (IDPs): Endorsed by FSM Congress in January 2025, the IDPs set out a coordinated, multi-sector investment pipeline for the next decade, covering energy, transport, water, waste, health, and resilient infrastructure. Their objective is to guide resource allocation, prioritize climate-resilient and sustainable projects, and attract external financing. The IDPs serve as a bridge between sectoral development priorities and FSM’s climate commitments, directly informing the design and implementation of NDC 3.0 by aligning infrastructure investments with mitigation and adaptation goals. • National Disaster Management Plan (2025): This framework enhances disaster preparedness and response across all governance levels. It emphasizes community self-sufficiency and the integration of disaster risk management into national and state policies. • State SMART Plans: The State SMART Plans align state-level priorities with national development strategies and NDC commitments, facilitating targeted resource mobilization. Developed through multi-stakeholder workshops in 2025, these plans played a pivotal role in shaping NDC 3.0 by translating state-level aspirations into concrete mitigation and adaptation targets. This bottom-up process ensured that the NDC reflects both national ambition and local realities, strengthening ownership and implementation pathways across all four states. • Solid Waste Management Strategy (2019): Building on prior national and regional efforts, this strategy aims to establish a sustainable framework for integrated solid waste management over ten years. It includes mid-term action plans and is primarily state-driven, supported by DECEM and development partners. • National Gender Policy (2018): This policy promotes gender equality and mainstreams gender considerations into climate and development processes. Its objectives include enhancing women's leadership and participation, combating gender-based violence, and ensuring equitable education outcomes. A five-year updated policy, the FSM National Gender Equality Policy (2025–2030), is set to launch in October 2025. • Climate Change Act (2013): This foundational legislation mandates the integration of climate actions across government ministries. Its implementation is led by DECEM, although challenges remain due to limited institutional capacity and fragmented funding. 23

4.10 NDC 3.0 Enhancement Process FSM’s NDC 2.0 established ambitious mitigation and adaptation targets across multiple sectors. Key commitments included achieving 100% electricity access, increasing the share of renewable generation to over 70%, and reducing CO₂ emissions from power by more than 65% below 2000 levels. Additionally, FSM pledged to phase down HFCs, reduce black carbon and methane emissions from diesel generation by 65%, and develop national methane inventories. On adaptation, FSM committed to climate-proof all major roads, ports, and airport access routes by 2030, ensuring universal access to safe drinking water, and improving food security through initiatives like farmer cooperatives, climate- smart agriculture, and seed banks. The NDC also targeted effective management of 50% of marine resources and 30% of terrestrial areas, alongside strengthening public health systems and disaster preparedness to better respond to climate-related risks. The NDC 3.0 builds on the foundation of FSM’s NDC 2.0 by expanding coverage to new sectors including transport, waste, cooking, oceans, and loss and damage. It strengthens coherence with national development plans (SDP and IDPs) and biennial update reports, regional frameworks, and global climate architecture. A key feature of NDC 3.0 is its alignment with the outcomes of COP28 and COP29, particularly through its link to the Global Stock-take (GST) process and the recognition of a just and equitable transition as guiding principles. The GST calls for parties to amplify ambition in light of collective progress towards the Paris Agreement goals and FSM responds by extending updated targets to 2035, providing a longer-term planning horizon that better reflects infrastructure cycles, adaptation needs, and investment strategies. In the mitigation sector, NDC 3.0 builds on FSM’s energy transition package, reaffirming the target of 70% renewable energy in power generation by 2030. Additionally, it sets post-2030 milestones on grid modernization and efficiency improvements. On the adaptation front, NDC 3.0 integrates priorities on coastal protection, resilient infrastructure, and food and water supplies. Importantly, the NDC 3.0 explicitly incorporates loss and damage as a cross-cutting area, acknowledging FSM’s extreme vulnerability to sea-level rise, typhoons, and other climate shocks. By mainstreaming enabling factors such as gender and disability inclusion, education and capacity building, policy and regulation, climate financing, and private sector participation, FSM positions its NDC 3.0 as a comprehensive framework through 2035, balancing mitigation and adaptation efforts while addressing critical resilience needs. Reflecting the COP28 outcome on just-transition, FSM emphasizes that the fair and inclusive implementation of NDC 3.0 is inseparable from safeguarding livelihoods, addressing socio-economic vulnerabilities, and ensuring that no community is left behind. The people of FSM are collectively building and strengthening the country’s resilience to climate change in alignment with the just-transition principles. Looking ahead to COP29, FSM underscores that delivery of enhanced international climate finance through the new collective quantified goal (NCQM) will be critical to realizing the conditional elements of its NDC 3.0. 24

4.11 Approach to NDC 3.0 Preparation The measures outlined in NDC 3.0 have been prepared at the national level through extensive consultations and validations involving both national and state stakeholders. These measures reflect state-level priorities, articulated through their respective SMART plans, ensuring alignment with sector-specific strategies while accommodating the varying levels of development among the four states. The preparation process involved a structured review of existing literature and frameworks. Key national and state-level frameworks analyzed include the Strategic Development Plan (SDP) 2024-2043 and the National Energy Policy (2024–2050), which provide the overarching direction., This is complemented by the Energy Master Plans (2018), Solid Waste Management Strategy (2019), National Disaster Management Plan (2025), and the Climate Change Act (2014). The Infrastructure Development Plans (IDPs) 2025–2034 translate priorities into actionable investment pipelines, while cross-cutting initiatives are supported by the National Gender Policy (2018), with a new Gender Equality Policy (2025–2030) set to be launched soon. Together, these policies and plans establish the foundation for FSM’s inclusive climate ambition and ensure alignment with regional and global frameworks.

4.12 Limitations and Challenges FSM currently relies on diverse methodologies provided by multilateral agencies and technical assistance programs to measure and report on climate-related activities, including waste emissions, GHG inventories, and climate finance flows. While these efforts have been valuable, they have often produced fragmented data that is inconsistent and difficult to compare across sectors. In preparing NDC 3.0, FSM has identified gaps, particularly in GHG inventories, due to the absence of a consistent data source. To address these challenges, FSM recognizes the need for a nationally owned Monitoring, Reporting, and Verification (MRV) framework that consolidates data across mitigation, adaptation, and finance sectors. Establishing such a system will ensure country ownership, enhance consistency in data collection and reporting, and align with national climate priorities. A unified MRV framework will also strengthen FSM’s capacity to report transparently under the Enhanced Transparency Framework, improve access to international climate finance, and support evidence-based policymaking. 25 5. MITIGATION FSM’s mitigation strategy under NDC 3.0 targets the primary sources of national emissions by prioritizing actions in the electricity, transport, waste, agriculture, forestry and other land use (AFOLU), and industrial processes and product use (IPPU) sectors. Collectively, these sectors account for the majority of the country’s GHG emissions, with energy use in electricity generation and transport being the largest contributors.

5.1 Energy The energy sector is central to FSM’s sustainable development, economic resilience, and climate objectives. Access to reliable, affordable, and clean energy is essential for improving livelihoods, ensuring service accessibility, and reducing dependence on imported fossil fuels, which currently pose significant economic and environmental challenges. Moreover, energy accounts for the largest share of GHG emissions in FSM, making it a priority focus area for mitigation. Within the energy sector, two subsectors are particularly critical: Electricity and Transport.

5.1.1 Electricity The electricity sector is the largest source of GHG emissions in FSM, primarily due to the country’s reliance on imported petroleum fuels for power generation. Annual spending on diesel imports amounts to around US$50 million, constituting about ~15% of GDP and creating both climate and economic vulnerabilities. Diesel is responsible for almost 80% of FSM’s CO₂ emissions30, underscoring the urgent need for a transition to sustainable alternatives. FSM possesses useful renewable energy potential, particularly solar, wind, and hydro resources. However, the deployment of these resources has been constrained by high upfront costs and limited grid infrastructure and capacity. The inclusion of electricity in this NDC underscores its critical role in mitigation, its potential to strengthen energy security and resilience, and its alignment with FSM’s long-term net-zero vision. As of 2024, electricity generation in FSM continues to be dominated by diesel-powered generators, which provided about 31 MW of installed capacity. Renewable sources accounted for 17% of total capacity, with solar providing 4.65 MW, wind 0.84 MW and hydro 0.72 MW31. These renewable systems serve mostly the main islands with the exception of mini grids in Yap state’s outer islands. Although there has been gradual progress in the development of solar PV systems, the expansion of energy storage has 30 Updated nationally determined contribution of the Federated States of Micronesia for the period through 2030. Available at https://unfccc.int/sites/default/files/NDC/2022- 10/Updated_NDC_of_the_Federated_States_of_Micronesia.pdf 31 National Energy Policy 2024-2050. Available at https://spccfpstore1.blob.core.windows.net/digitallibrary- docs/files/a0/a0378964a479f3f1a6fb9929e08c4f3c.pdf?sv=2015-12-11 26 not consistently matched this growth. FSM’s grid infrastructure remains independent of the main island grid, with each state— Yap, Chuuk, Pohnpei, and Kosrae operating standalone, small-scale networks. This structure restricts economies of scale and complicates renewable energy integration. Electrification rates vary considerably: while national household access reached 97% in 2024, Chuuk stood at 42.8% (only 2 out of the 40 islands are currently electrified) compared to 96–97% in Pohnpei and Kosrae and 85% in Yap31. Expansion of grid connectivity remains a priority, with Chuuk targeting universal access by 2035. Energy efficiency also remains an area of opportunity. Plant Utilization Factors (PUF) for diesel generators vary a lot with 56% in Pohnpei, 15% in Yap, 23% in Chuuk and 30% in Kosrae in 2024, reflecting underuse and the high operating costs of small-scale systems. Currently, there is an energy efficiency policy only in Yap under the Yap Building Code, 1997 but DoRD is working on a National Energy Efficiency Policy and Minimum Energy Performance Standards. DoRD envisages to have this policy endorsed in early 2026. The targeted efforts under the Micronesia Public Sector Buildings Energy Efficiency (MPSBEE) Project (2021) have introduced energy conservation and efficiency practices in public facilities. MEASURES Table 1: Mitigation Priority Area – Electricity # Measures Conditionality SDG Goals M1 Increase Renewable energy mix in electricity Conditional generation at grid level to 70% by 2030 and 80% by 2035 M2 Increase electricity access to 100% by 2035 Conditional M3 Improve energy efficiency across supply and Conditional demand systems: • M3.1: Develop and enforce MEPS for commonly used electrical equipment and appliances (Ex. ACs, Fans, Lighting, Motors, others) • M3.2: Reduce T&D losses to below 10% by 2030 and below 8% by 2035 • M3.3: Improve energy efficiency (EE) in commercial facilities like water and wastewater handling facilities • M3.4: Increase awareness on EE and drive financing innovations and support for increased adoption across stakeholders 27 M4 Increase Distributed Renewable Energy (DRE) Conditional production and use to: • M4.1: Households and communities in main and outer islands • M4.2: Water and Waste-Water Utilities • M4.3: On-shore port electrification and auxiliary supply to ships FSM’s planned measures in the electricity sector can deliver transformative outcomes. By raising the renewable energy share to 70% by 2030 and 80% by 2035, while simultaneously reducing transmission losses and enhancing energy efficiency, the country can significantly diminish reliance on diesel generation. This plan includes expanding renewable capacity to about 54 MW, most of which would be solar, by 2035, which is in line with the Energy Master Plan. Implementing these actions can avoid the use of more than ~18 million gallons of diesel for electricity generation between 2026– 2030 and a further ~28 million gallons between 2031–2035. Collectively, these measures could result in a reduction of approximately 208 ktCO₂ from 2026 to 2030, representing a 66% reduction compared to Business-as-Usual in 2030, and about 324 ktCO₂ from 2031 to 2035, or roughly a 76% reduction compared to Business-as-Usual in 2035. Reducing the use of diesel fuel or improving fuel efficiency also contributes to lowering emissions of black carbon, a short-lived climate pollutant with significant climate and health impacts. Achieving these outcomes will require sustained international support, increased climate finance, and access to the necessary technologies and capacity. The energy sector is guided by the National Energy Policy 2024–2050, Energy Master Plan 2018, and state-level SMART plans. Current donor-supported projects include the ADB’s Renewable Energy Development Project (REDP), Clean Energy Project, and Climate Resilience Energy and Water Sector (CREWS) Project; World Bank’s Access and Renewable Increase for Sustainable Energy (ARISE) and Sustainable Energy Development and Access Project (SEDAP) projects, the EU-funded FSM Sustainable Energy Project (FSM.SE), and some state-level SMART plan. These existing initiatives aimed at advancing renewable penetration, expanding access, and modernizing FSM’s power sector will require a lot more investments for meeting NDC 3.0 electricity measures. The adoption of renewable energy and energy efficiency programs can also enhance FSM’s tourism sector, reducing reliance on diesel, lowering operational costs for resorts and services, and promoting the image of FSM as a sustainable and eco-friendly destination.

5.1.2 Transport Transport is essential to FSM’s mobility, trade, and connectivity, linking communities across a widely dispersed island geography. The sector supports economic activity through road, sea, and air transport; however, it also significantly contributes to national fuel demand and associated emissions, as it relies on imported petroleum products. Recognizing its importance, transport related mitigation is included in NDC 3.0 for the first time, ensuring that mobility and connectivity needs are addressed in tandem with climate commitment. 28 FSM has a road network of 388 km, of which 185 km are paved, and 203 km are unpaved. As of 2020, there were approximately 11,014 registered vehicles, predominantly private and second-hand imports. The vehicle fleet is generally older and fuel-intensive32 and there are currently no national standards for fuels, fuel efficiency and vehicle inspections. Marine transport is vital for inter-island mobility and trade, with 38 cargo ships over 1,000 gross tons32 operating within FSM. The main ports are Colonia (Yap), Lele Harbor (Chuuk), Moen Harbor (Pohnpei), and Pohnpei Harbor that handle both cargo and passenger traffic. Air transport is equally important with international airports in Chuuk, Pohnpei, Kosrae, and Yap providing essential links to the region and beyond. At present, the transport sector is entirely dependent on imported petroleum fuels, with no adoption of electric vehicles (EVs) or alternative fuels. Since about 85% of FSM’s electricity generation still comes from diesel, the electrification31 of transport will only reduce emissions effectively if is accompanied by an expansion of renewable energy generation. Consequently, planning for EV adoption is closely linked to FSM’s renewable energy pathway. Developing a comprehensive transport strategy is recognized as a priority, with opportunities identified in improving public transport systems, expanding walking and cycling infrastructure, and transitioning to cleaner fuels such as biofuels, which can leverage local biomass resources. These approaches can strengthen connectivity while reducing reliance on imported fossil fuels and improving community well-being. MEASURES Table 2: Mitigation Priority Area – Transport # Measures Conditionality SDG Goals M5 Develop National Master Transport Plan and Conditional associated State Action Plans, integrating land and marine transportation. M6 Improve NMT (walkway, bicycling lanes) to allow a Conditional more livable urban community M7 Increase the shift to Public Transportation (PT) buses Conditional and ferries M8 Transition to electric and clean fuel alternatives for Conditional land, sea, and air transportation, including increasing the share of e-Mobility Note: The sequence of measures follows the Avoid, Shift, Improve approach In the transport sector, road vehicles and domestic marine vessels are estimated to 32 Initial Environmental Examination, 2021 . Available at https://www.adb.org/sites/default/files/linked- documents/55009-001-ieeab.pdf? 29 consume around 51.6 million gallons of fossil fuels between 2026 and 2030, rising to 56.7 million gallons between 2031 and 2035. Under a Business-as-Usual (BaU) trajectory, this consumption equates to approximately 500 ktCO₂e between 2026–2030 and 550 ktCO₂e in 2031–2035. The electrification of road and domestic marine transport can begin to reduce these emissions. Without a concurrent shift to renewable energy in the power sector, electrification alone risks shifting emissions from tailpipes to upstream electricity generation. However, when coupled with FSM’s planned renewable energy transition, the introduction of electric vehicles can deliver greater long-term benefits by reducing fossil fuel imports, improving air quality, and cutting emissions in line with FSM’s net-zero vision. Transforming FSM’s transport sector offers opportunities not only for emissions reduction but also for improving mobility and connectivity across the islands. The measures in this NDC focus on creating more accessible and affordable transport systems, reducing dependence on private vehicles, and ensuring that all communities, urban and outer islands alike, benefit from reliable connections.

5.1.3 Energy - Others Access to clean, safe, and affordable cooking solutions is an important component of FSM’s energy transition with direct implications for public health, gender equality, and emission reduction. Traditional cooking practices in many households rely on biomass or kerosene, contributing to indoor air pollution and disproportionately affecting women and children, particularly in outer islands. Including clean cooking in FSM’s NDC ensures that energy access goals are linked to health and social outcomes while reducing reliance on imported fossil fuels. Clean cooking access remains limited in FSM, especially in rural and outer island communities, where households rely on firewood and kerosene as cooking fuels. The 2016 Agriculture Census confirmed widespread use of biomass for household needs, often without efficient stoves. Although LPG/butane stoves are increasingly used in urban centers, their uptake in outer islands is hindered by affordability, supply chain constraints, and lack of awareness. MEASURES Table 3: Mitigation Priority Area – Energy - Others (Cooking) # Measures Conditionality SDG Goals Increase clean cooking adoption using biogas, electric M9 Conditional stove, and other clean options to 70% by 2035 30 Expanding access to clean cooking can deliver triple benefits: improved health by reducing household air pollution, gender empowerment through women’s engagement in the clean energy value chain, and climate mitigation by reducing reliance on kerosene and inefficient biomass. The measures outlined are fully aligned with the National Energy Policy 2024–2050 and contribute to FSM’s broader SDG commitments, particularly SDG 7 (universal energy access). However, there is no national program yet that ensures universal adoption and achieving 100% access to clean cooking by 2035 will require scaled-up investment, stronger supply chains, and targeted gender-sensitive programming.

5.2 Waste The waste sector is increasingly prioritized in FSM’s climate agenda due to its contribution to national greenhouse gas emissions, primarily methane from unmanaged landfills and nitrous oxide from wastewater. In 2018, the sector generated 27.24 ktons of CO₂e15. making it one of the key non-energy sources of emissions. FSM’s dispersed island geography and reliance on imported goods, particularly plastics and packaging, have amplified the volume and complexity of waste streams. Limited landfill space, alongside challenges in collection and treatment, creates significant risks for public health, coastal ecosystems, and marine biodiversity. FSM’s waste infrastructure remains small in scale, with each state operating a single landfill of varying sizes. Pohnpei’s Dekehtik landfill, is the largest at 4 hectares, handles approximately 7,000 tons of waste annually. In contrast, the landfills in Yap (0.83 ha), Chuuk (0.5 ha), and Kosrae (0.6 ha) are much smaller. Collectively, these landfills manage around 13,000 tons of waste each year33. Waste collection practices vary by state: Pohnpei and Chuuk employ a combination of municipal collection and direct transport, while Yap and Kosrae report much lower collection volumes due to limited capacity. Rehabilitation of Chuuk’s landfill is currently underway, as the old landfill is full and contains a significant amount of mixed waste that was dumped without proper sorting practices. In practice, waste streams are dominated by organics and plastics, with organics contributing significantly to landfill methane emissions. However, the fraction of organic waste is relatively small compared to other developing countries with similar economic level because of this feeding habit. Biowaste is often fed to piggeries, while composting practice are scarce and primarily limited to the household level. Progress has been made through initiatives such as the Plastic Ban Policy, which has been enforced in several states, and the long-standing Container Deposit Legislation (CDL) scheme that incentivizes recycling of aluminum cans, PET bottles, and glass. However, the aluminum recycling facility in Chuuk is currently facing issue due to not getting consistent power supply. 33 Waste Audit Report, 2021 . Available at https://www.sprep.org/sites/default/files/POLP/FSM-Waste-Audit- Report.pdf 31 Figure 5: Municipal Solid Waste Composition by Weight (2021)33 MEASURES Table 4: Mitigation Priority Area – Waste # Measures Conditionality SDG Goals M10 Develop policy on circular economy with a Conditional particular focus on waste reduction: • M10.1: Enhance the implementation of policy and regulation on banning Single Use Plastic by 2030 • M10.2: Develop metal bailing and compacting facilities for scrap cars, fuel canisters, aluminum cans, and others for forward recycling • M10.3: Install new incinerators to better handle bio-hazardous and medical waste M11 Improve landfill site management and divert Conditional organic waste from landfill sites • M11.1: Promote composting practices at household level • M11.2: Develop community composting and mulching facilities across all states • M11.3: Improve operational and monitoring capacity for the semi-aerobic and controlled landfill site management 32 M12 Improve municipal solid waste and waste-water Conditional collection and treatment systems for reduced Methane release • M12.1: Conduct a pilot of a decentralized wastewater treatment systems. • M12.2: Promote anaerobic biodigesters for households and piggeries by involving private sector to treat wastewater and produce biogas for clean cooking (and electricity generation) With the identified measures fully resourced, FSM can achieve a methane reduction target of 12% below 2020 levels. This translates to an avoidance of approximately 30 ktCO₂e between 2026–2030 and an additional 47 ktCO₂e between 2031-2035. This will be achieved by reducing waste generation by 10% and improving the landfill site operation and monitoring. Once more accurate data is collected from wastewater sector, the reduction is estimated to be larger. By improving waste management, FSM can reduce emissions while enhancing community resilience, ocean health, and the transition toward a circular economy. Strengthening waste management through new landfills, recycling programs, proper operation and monitoring and composting systems will reduce pollution and greenhouse gas emissions while creating multiple social and economic benefits. Improved waste handling enhances public health by lowering disease risks, protects marine ecosystems vital for fisheries and tourism, and generates jobs in recycling and composting sectors. Composting and mulching in particular supports food security by improving soil fertility and reducing dependence on imported fertilizers, linking waste management directly to sustainable agriculture and livelihoods. The IDPs (2025–2034) and Methane Reduction Roadmap (2025) include projects for improved solid waste management systems, including expanded collection, landfill upgrades with proper operation, recycling, and organic waste management through composting and mulching which reduce pollution, climate impact and enhance public health outcomes. 33

5.3 Agriculture, Forestry and Other Land Use (AFOLU) The AFOLU sector is pivotal to FSM’s climate strategy. While agriculture and small-scale livestock contribute only modest emissions, FSM's extensive forests, agroforests, and especially mangrove ecosystems serve as critical carbon sinks. This sector is essential for food security, biodiversity conservation, and community resilience. Given ongoing pressures from deforestation, invasive species, and climate impacts such as saltwater intrusion and storms, including the AFOLU sector in NDC 3.0 supports both mitigation and adaptation goals through an integrated, ecosystem-based approach. Based on the 2016 Integrated Agriculture Census, over 90% of households in FSM reported access to land for agriculture purposes, with 74% cultivating solely for household consumption, focusing on root crops like taro, yam, breadfruit, bananas, and coconut. Tree crops and agroforestry dominate land use, comprising up to 80% of agricultural landscapes34. Forests cover a substantial portion of FSM, with mangrove forests spanning approximately 94 km² across all four states. Pohnpei contains around 57 km², followed by Kosrae (14 km²), Chuuk (12 km²), and Yap (11 km²). Mangroves not only serve as carbon sinks but also protect shorelines, stabilize sediments, and function as essential fish nurseries, thereby supporting both ecosystem health and coastal resilience35. Livestock ownership is widespread, with approximately 61% of households owning livestock as of 2016, amounting to 29,900 pigs and 70,800 chickens30. These livestock contribute to methane and nitrous oxide emissions through enteric fermentation and manure management. While fertilizer use is minimal, traditional shifting cultivation and organic matter decomposition also contribute to small-scale nitrous oxide releases. MEASURES Table 5: Mitigation Priority Area – AFOLU # Measures Conditionality SDG Goals M13 Develop Integrated Land Management Plan and Conditional associated State Action Plans M14 Increase forest conservation and restoration to Conditional increase the forest cover 34 FSM Integrated Agricultural Census 2016 . Available at https://www.fao.org/fileadmin/templates/ess/ess_test_folder/World_Census_Agriculture/WCA_2020/WCA_2020_new _doc/FSM_REP_ENG_2016_2017.pdf 35 The Federated States of Micronesia National Biodiversity Strategy and Action Plan . Available at https://faolex.fao.org/docs/pdf/mic214260.pdf 34 M15 Reduce methane release from agriculture through Conditional enhanced livestock productivity and utilization of organic fertilizers made from composting These measures align with the FSM Agriculture Policy Framework (2021–2030), the Nationwide Integrated Disaster Risk Management and Climate Change Policy, and state- level resource management and agroforestry programs. FSM has established several policy frameworks and projects to guide the development and conservation of the AFOLU sector. These include the National Biodiversity Strategy and Action Plan (NBSAP 2018– 2023), the National Agriculture Policy (2012–2016, with follow-up programming), and the FSM Forestry Policy. Ongoing projects supported by partners such as Secretariat of the Pacific Regional Environment Programme (SPREP), Food and Agriculture Organization of the United Nations (FAO), and the Micronesia Conservation Trust (MCT) focus on sustainable agriculture, mangrove restoration, and invasive species management. Projects identified in the IDPs (2025-2034) also encompass projects aligned with these measures including agroforestry, aquaculture, coastal protection, and agricultural facilities. These efforts aim to strengthen food systems while restoring ecosystems and carbon sinks.

5.4 Industrial Process and Product Use (IPPU) In addition to CO₂ and methane emissions, FSM faces challenges from short-lived climate pollutants (SLCPs) such as black carbon and hydrofluorocarbons (HFCs), as well as air and marine pollution stemming from plastics and hazardous waste. These pollutants not only contribute to near-term climate warming but also adversely affect human health, food security, and marine ecosystems – key components of FSM’s livelihoods. Addressing these issues through integrated pollution control policies strengthens FSM’s climate action while delivering co-benefits for communities and the environment. 35 MEASURES Table 6: Mitigation Priority Area – IPPU # Measures Conditionality SDG Goals Reduced HFCs use and leakages by aligning with the M16 Kigali Amendment and attaining a 10% reduction in Conditional HFCs by 2029 and 30% reduction by 2035 FSM has limited industrial processes but relies on imported refrigerants, particularly hydrofluorocarbons (HFCs), for refrigeration and air conditioning in households, fisheries, and commercial facilities. While overall volumes are small, HFCs are potent greenhouse gases and a growing source of emissions. As a party to the Kigali Amendment to the Montreal Protocol, FSM is committed to phasing down HFC consumption in line with international obligations. Currently, data on HFC use are primarily gathered from customs and Ozone Secretariat’s reporting. Enhanced monitoring and enforcement measures are needed to establish a robust national baseline and facilitate the transition to alternatives with lower global warming potential. While the IDPs for 2025-2034 focus less on industrial processes, they note the importance of phasing down high-global warming potential refrigerants in alignment with the Kigali Amendment and establishing systems to manage future industrial emissions effectively. 36 6. ADAPTATION FSM faces significant risks from sea-level rise, saltwater intrusion into freshwater lenses, increased intensity of tropical storms, coastal erosion, and shifts in rainfall patterns. These challenges directly threaten livelihoods, food security, freshwater availability, health, and critical infrastructure. To effectively address these interconnected risks across food security, water, oceans and biodiversity, public health, climate-resilient infrastructure, and disaster risk management, FSM requires integrated adaptation approaches. Although FSM has adopted ecosystem-based adaptation policies, limited financing – meeting only 25% of identified needs – and insufficient technical capacity hinder their implementation36. This NDC 3.0 emphasizes measures designed to strengthen local food systems, secure water supplies, protect marine and terrestrial biodiversity, and ensure that infrastructure can withstand climate shocks, all while integrating diverse state-level measures into a coherent national framework.

6.1 Food Subsistence farming and fishing are primary sources of food in FSM. Key crops include taro, breadfruit, yam, banana, and coconuts, while coastal and offshore fisheries provide essential protein. Although coconut palms are no longer the dominant cash crop, they remain resilient due to their versatile uses for food, oil, fuel, and handicrafts. Livestock such as pigs and poultry are raised at household level. Despite these resources, food security has deteriorated over the past few decades as local agricultural production per capita has declined. Productivity is hampered by pests and poor soil conditions, and traditional seed stocks are at risk. Additionally, coconut production has fallen due to aging trees and diminished farmer interest, while aquaculture remains underdeveloped due to limited technical knowledge, inputs, and finance. Fragmented islands complicate market access, and inadequate storage and processing facilities weaken the link between producers and buyers. FSM’s heavy reliance on exacerbates vulnerability to global supply disruptions and rising costs. In 2023, the country imported over US$13 million worth37 of poultry meat, processed fish, and other meat products, which also contributes to increased maritime shipping emissions. Climate-induced extremes have further compounded food security issue, with prolonged droughts in Pohnpei and Kosrae and typhoons in Chuuk and Yap, repeatedly devastated crops and water supplies. Destructive fishing practices undermine marine resources. 36 FSM Second Voluntary National Review 2 2. 5. Available at https://img1.wsimg.com/blobby/go/03465d55-d45f- 4daf-a19f- 877991a60874/10076_UN_FSM_VNR_2025_V15_LR.pdf?fbclid=IwZXh0bgNhZW0CMTAAYnJpZBExZ3MwS3hDSUJyY3d pYk4zTgEePaIH0RW9tLwE_mYMwIjQMhCKpfwuk7V2XR8PnlA41cWysX15J_8I2uzmFxo_aem_qvwF1K0FWfIeAHomn2z yQg 37 Observatory of Economic Complexity (OEC). Available at https://oec.world/en/profile/country/fsm 37 MEASURES Table 7: Adaptation Priority Area – Food # Measures Conditionality SDG Goals A1 Protect land & water to reduce saltwater intrusion, Unconditional erosion, and flood risk: • A1.1: Construct coastal barriers using bunds, walls, or mangrove plantations • A1.2: Restore watershed areas for the protection of freshwater lenses A2 Adopt climate-resilient farming to improve crop Unconditional tolerance to heat, storms, and pests: • A2.1: Diversify crops with climate-resilient varieties and using agroforestry systems • A2.2: Apply mulching and organic soil amendments • A2.3: Develop integrated pest and disease management practices A3 Secure seed & livestock resources to ensure rapid Conditional recovery after climate shocks: • A3.1: Establish community nurseries • A3.2: Operate decentralized seed banks • A3.3: Develop and manage broodstock for livestock A4 Enhance water security to sustain farming during Conditional droughts and dry spells: • A4.1: Install rainwater harvesting systems • A4.2: Deploy low-cost micro-reservoirs for irrigation A5 Scale sustainable aquaculture while preserving reefs Conditional by operating hatchery-based aquaculture for clams, sandfish, and other species A6 Strengthen food value chains to produce more (for Conditional local consumption and exports), minimize post- harvest loss, grow market linkages, and increase farmer income A7 Enable monitoring systems, policies, finance, and Conditional capacity building to unlock climate-smart agriculture investment by enhancing farmers' cooperatives A8 Prevent and manage invasive species (IS) to protect Conditional croplands The measures outlined in this NDC 3.0 aim to collectively strengthen FSM’s food security by protecting the natural resource base and increasing the resilience of farming systems. Coastal barriers, watershed restoration, and invasive species management will mitigate 38 saltwater intrusion, erosion, and biodiversity loss, thereby preserving arable land and freshwater for agriculture. Climate-resilient farming practices, crop diversification, and soil management are expected to enhance yields and reduce vulnerability to storms, heat, and pests. Community nurseries, decentralized seed banks, and livestock broodstock will ensure that farmers can quickly recover production after disasters. Rainwater harvesting and micro-reservoirs provide critical buffers against drought, while hatchery-based aquaculture offers alternative protein sources without overexploiting marine reefs. The NDC 3.0 sets ambitious goals to increase FSM’s food resilience and has some ongoing projects aligned with the measures However, financing remains limited with a 50% decline in donor funding, and support systems for farmers are still weak38. The FSM Strategic Development Plan 2024-2043 emphasises the need for increased resource availability and capacity development for aquaculture and small-scale fisheries, as well as community workshops and trainings in agriculture and fishing. The National Biodiversity Strategy & Action Plan (NBSAP) and the FSM Agriculture Policy (2012–2016) emphasize on creating and maintaining state seed banks and collaborating with farmers’ associations to enhance market access. To strengthen land and water protection, FSM is leveraging the PACMAN mangrove monitoring network and the FSM Forest Action Plan 2020–2030 for watershed restoration, nursery support, and mangrove resilience. The National Invasive Species Strategy & Action Plan (NISSAP) provides guidance on biosecurity, and ongoing invasive species programs have already yielded positive outcomes for FSM, particularly in Chuuk.

6.2 Water FSM relies on rainwater, surface water, and ground water for freshwater supply. The low- lying islands depend almost entirely on rainwater and shallow wells, as public water supplies are non-existent and groundwater from water lenses are unsuitable for drinking. In contrast, the high islands access aquifers and deeper wells. While desalination is not routinely used, it serves as an emergency measure for outer islands during droughts. Water distribution utilities across FSM operates independently, with limited oversight by the state Environmental Protection Agencies (EPA). Some older communities lack distribution lines, while newer homes are typically connected to these systems. • Yap promotes private rainwater tanks for households without access to alternative sources of water and provides them with free water quality testing kits. Most communities have implemented measures to protect watersheds. In 2023– 38 Federated States of Micronesia Second Voluntary National Review 2 25. Available At https://img1.wsimg.com/blobby/go/03465d55-d45f-4daf-a19f- 877991a60874/10076_UN_FSM_VNR_2025_V15_LR.pdf?fbclid=IwZXh0bgNhZW0CMTAAYnJpZBExZ3MwS3hDSUJyY3d pYk4zTgEePaIH0RW9tLwE_mYMwIjQMhCKpfwuk7V2XR8PnlA41cWysX15J_8I2uzmFxo_aem_qvwF1K0FWfIeAHomn2z yQg 39 2024, Yap expanded its dam and surface-water capacity and has access to drinking water from wells. • Kosrae conducts water testing in catchment areas to ensure water quality. • In Chuuk, Weno Island is the only island with access to drinking water supplied by Chuuk Public Utility Corporation, serving approximately 8% of households39. • The Pohnpei Utilities Corporation has a much broader reach, servicing 96% of the population with drinking water40. Water security in FSM is likely to become an increasingly difficult challenge in the context of climate change. This includes risks from flooding and marine inundation, saltwater intrusion into freshwater lenses, and El Niño-related droughts affecting area like Yap and western Chuuk. Human pressures such as over-pumping of groundwater leading to salinization, contamination from inadequate sanitation systems in rural areas, poor managed catchment and storage facilities, proximity of piggeries to water sources, industrial demand from fish processing in Pohnpei, and unsustainable agricultural practices further strain resources. Limited technical capacity and data gaps hinder effective planning, underscoring the need for climate-smart infrastructure, including stronger watershed management, scaled wastewater treatment, and the development of additional groundwater and surface-water sources. MEASURES Table 8: Adaptation Priority Area – Water # Measures Conditionality SDG Goals A9 Increase clean drinking water access to 100% by Conditional 2035 • A9.1: Repair, maintain and expand water distribution system for unserved and underserved communities • A9.2: Install water purification systems in underserved areas (including solar- powered water purification systems for dispensaries) A10 Improve management and protection of Conditional watersheds • A10.1: Conserve and protect different water sources (increase monitoring, strengthen regulations, and improve education and public awareness) • A10.2: Install community/ household rainwater harvesting systems 39 Micronesia Project Notice - Preparing the Chuuk Water Supply and Sanitation Project . Available At Https://Www.Biddetail.Com/Projects/Project-Information/38842 40 Pohnpei Utilities Corporation (A Component Unit of The State of Pohnpei) - Financial Statements, Additional Information and Independent Auditor’s Report - Year Ended September 30, 2022. Available at https://www.fsmopa.fm/files/FY2024/2022%20PUC%20Final%20Report.pdf 40 A11 Add new fresh ground and surface water sources Conditional A12 Repair, maintain and expand waste-water Conditional treatment systems The above-mentioned measures aim to significantly strengthen FSM’s water security by expanding reliable access, protecting freshwater sources, and ensuring safe management of wastewater. Repairing and extending distribution systems will help achieve universal access to clean drinking water, while improved watershed protection will preserve freshwater lenses and reduce contamination risks. Rainwater harvesting systems will create additional buffers during droughts and developing new freshwater sources will diversify supply, reducing dependence on vulnerable single systems. Upgrading wastewater treatment safeguards public health and ecosystems, preventing pollution of scarce freshwater resources and coastal areas. Together, these interventions build a resilient and inclusive water sector in FSM. The FSM SDP (2024-2043) prioritizes improvements to rural community water systems through water catchment system upgrades and efficient use of water lenses. Additionally, FSM’s state-specific SMART plans on water security focus on refurbishing and extending existing networks like in Chuuk’s outer islands, while improving water quality and infrastructure through assessments and mapping in Pohnpei and Yap. These actions align with the overarching goal of providing universal access to clean drinking water by upgrading infrastructure and expanding service to underserved communities, adding new freshwater sources; and repairing and expanding waste-water treatment systems.

6.3 Biodiversity FSM is a globally significant biodiversity hotspot, boasting a high species richness with 1,239 plant species across its marine and terrestrial ecosystems.41 Biodiversity underpins 41 Micronesia. National Communication (NC). NC 3. Biennial Update Report (BUR). BUR 1. Available at 41 FSM’s culture, livelihoods, climate resilience, and food security. Currently, over 30% of marine areas and 20% of terrestrial ecosystems in FSM are under formal protection42. The country maintains over 50 protected sites with current coverage at approximately 6.4% of marine and 14.6% of terrestrial ecosystems. Forests are particularly critical for conservation and restoration efforts. Under Forest Conservation and Restoration initiative, FSM’s forests, including the unique Yela Valley Ka Forest, contribute to watershed health, climate resilience, and habitat for endemic biodiversity. Main threats to FSM’s terrestrial biodiversity include habitat conversion and unsustainable land use practices, limited resources and technical capacity for ecosystem management, and climate change impacts such as storms and changing rainfall patterns. MEASURES Table 9: Adaptation Priority Area – Biodiversity # Measures Conditionality SDG Goals A13 Protect and restore mangroves and coastal vegetation Unconditional to provide natural coastal defense A14 Conserve terrestrial forests and wetlands by Unconditional managing 30% terrestrial resources by 2035 A15 Expand and manage protected areas (PAs) to Conditional conserve key species and habitats • A15.1: Assess, update and register PAs (leveraging GIS maps) • A15.2: Undertake enforcement and community outreach programs A16 Promote sustainable land use and ecosystem-based Conditional adaptation by developing/updating Integrated Land Management Plans and Shoreline Development Plans Https://Unfccc.Int/Sites/Default/Files/Resource/Nc3%20bur1%20micronesia%20unfccc.Pdf 42 Federated States of Micronesia Second Voluntary National Review 2 25. Available At https://img1.wsimg.com/blobby/go/03465d55-d45f-4daf-a19f- 877991a60874/10076_UN_FSM_VNR_2025_V15_LR.pdf?fbclid=IwZXh0bgNhZW0CMTAAYnJpZBExZ3MwS3hDSUJyY3d pYk4zTgEePaIH0RW9tLwE_mYMwIjQMhCKpfwuk7V2XR8PnlA41cWysX15J_8I2uzmFxo_aem_qvwF1K0FWfIeAHomn2z yQg 42 The measures proposed in this NDC 3.0 aim to deliver significant positive outcomes for FSM’s biodiversity and land resilience by integrating ecosystem protection with sustainable land management practices. Restoring mangroves and coastal vegetation will strengthen natural coastal defenses, reduce erosion, storm surge damage, and saltwater intrusion while sustaining nearshore fisheries. Expanding and effectively managing protected areas will ensure the conservation of key species and ecosystems, promoting local stewardship. The commitment to effectively manage 30% of terrestrial resources by 2035 aligns with the Micronesia Challenge. At the state level, Kosrae’s SMART Plan recognizes that achieving this goal requires clear measurement and monitoring systems, highlighting the need to develop mechanisms to evaluate terrestrial resource management. This goal also aligns with the National Biodiversity Strategy and Action Plan (NBSAP). Complementing this is the FSM Forest Action Plan (2020–2030) that outlines strategic actions on forest management and biodiversity protection in upland and terrestrial areas. Land-based measures are further supported by integrated planning efforts, such as Kosrae’s KLUP land allocation and zoning plan and Mutunlik Shoreline Coastal Protection Plan, as well as the national-level “Securing Climate-Resilient Sustainable Land Management and progress towards Land Degradation Neutrality (LDN) The Protected Areas Network Policy Framework (PANPF) strengthens terrestrial biodiversity management by coordinating terrestrial sites both at the national and state levels. State-specific actions include Kosrae’s use of geographic information systems (GIS) to update protected area maps and develop management plans and community engagement activities across states to elevate awareness of terrestrial conservation. The importance of mangroves as carbon reservoirs has been recognized in the Paris Agreement, prompting FSM states to enact laws and regulations aimed at the protection and conservation of mangroves over time.

6.4 Ocean The ocean constitutes more than 99.9% of FSM’s territory and represents the country’s most valuable economic resource. FSM has the 14th largest Exclusive Economic Zone (EEZ) globally with a total ocean area of approximately 3 million square kilometers despite its small landmass43. Marine Protected Areas (MPA) have expanded to cover 28% of FSM’s EEZ44. The region’s coral reefs are home to a rich diversity of marine life, including 1,221 fish species and 472 corals species, which are vital for ecosystem health and livelihoods45 43 FEDERATED STATES OF MICRONESIA - Nearshore marine resources across the atolls of the Federated States of Micronesia. Available at https://www.uog.edu/_resources/files/news-and-announcements/2024-2025/Preliminary- report-FSM-corals.pdf 44 FEDERATED STATES OF MICRONESIA Second Voluntary National Review 2 25. Available at https://img1.wsimg.com/blobby/go/03465d55-d45f-4daf-a19f- 877991a60874/10076_UN_FSM_VNR_2025_V15_LR.pdf?fbclid=IwZXh0bgNhZW0CMTAAYnJpZBExZ3MwS3hDSUJyY3d pYk4zTgEePaIH0RW9tLwE_mYMwIjQMhCKpfwuk7V2XR8PnlA41cWysX15J_8I2uzmFxo_aem_qvwF1K0FWfIeAHomn2z yQg 45 Micronesia. National Communication (NC). NC 3. Biennial Update Report (BUR). BUR 1. Available at 43 of local communities. However, there are persistent gaps with marine data and a concerning decline in coral reef health. Key threats to ocean ecosystems include overexploitation of coastal and nearshore fisheries, illegal, unreported, and unregulated (IUU) fishing of tuna stocks, and the use of conventional fishing gears and unsustainable fishing practices. Climate change poses critical challenges, particularly through ocean warming, sea-level rise, and acidification. In response to these threats, climate change adaptation has become a key pillar of FSM’s integrated ocean management strategy. MEASURES Table 10: Adaptation Priority Area – Ocean # Measures Conditionality SDG Goals A17 Manage tuna and high-seas resources to sustain Conditional national revenue and ocean health by incorporating: • A17.1: 100% of purse seine vessels in FSM EEZ using non-entangling, biodegradable FADs by 2035 • A17.2: 100% of FSM-flagged longline vessels covered by electronic monitoring by 2035 A18 Restore, manage and protect more than 50% of Conditional coastal marine habitats like coral reefs to sustain nearshore fisheries by 2035 • A18.1: Establish coral reef monitoring and restoration programs • A18.2: Integrate reef resilience strategies into coastal management • A18.3: Implement community-based management for reef areas • A18.4: Restore degraded seagrass beds and coastal wetlands through replanting and community programs • A18.5: Expand monitoring of seagrass and wetland health to track carbon sequestration A19 Strengthen sustainable management of 50% marine Conditional resources and restrict commercial fishing in 30% of marine areas by 2035 • A19.1: Evaluate resource management of marine ecosystems • A19.2: Strengthen and add marine Protected Area (PA) systems A20 Develop blue economy activities to diversify ocean- Conditional https://unfccc.int/sites/default/files/resource/NC3%20BUR1%20MICRONESIA%20UNFCCC.pdf 44 derived income through: • A20.1: Value-added processing (purse seine by-products) • A20.2: Pilot sustainable mariculture and seaweed/pearl value chains where ecologically suitable A21 Strengthen marine governance, surveillance & data Conditional systems in 30% of marine waters by 2035: • A21.1: Expand VMS/monitoring and community-based surveillance • A22.2: Improve national ocean data systems and mapping • A22.3: Develop Marine Spatial Plans (MSPs) at state and national levels • A22.4: Build capacity for enforcement and monitoring in partnership with BPM and Micronesia Challenge A22 Protect and monitor marine ecosystems from Conditional acidification by establishing long-term ocean acidification monitoring stations and piloting adaptive strategies A23 Strengthen coastal protection by regulating beach Conditional sediment removal • A23.1: Establish national and state-level regulations controlling sand, gravel, and coral aggregate removal from beaches and nearshore areas • A23.2: Conduct monitoring and enforcement programs to prevent illegal and unsustainable extraction A24 Reduce ocean pollution & support healthy marine Conditional ecosystems • A24.1: Reduce plastic leakage into the ocean by 100% by 2035 through nationwide enforcement of single-use plastics bans and circular economy systems • A24.2: Control land-based pollution and runoff into nearshore waters • A24.3: Enforce sustainable disposal of ship wastes and fuels The proposed measures aim to significantly enhance ocean health, ensure the sustainability of fisheries, and bolster climate resilience while securing long-term economic benefits through diversification of livelihoods and reduction in reliance on imports. Restoring and protecting over 50% of coastal ecosystems such as reefs, seagrass, and wetlands will sustain nearshore fisheries. Expanding marine protected areas and restricting commercial fishing will help conserve critical habitats and replenish stocks. Strengthening marine governance, spatial planning, and surveillance will ensure sustainable use, while monitoring ocean acidification and regulating sediment removal 45 will protect coastal ecosystems from long-term degradation. Additionally, eliminating plastic pollution and controlling land- and ship-based pollution will contribute to healthier marine ecosystems. The commitment to effectively manage 50% of marine resources by 2035 aligns with the Micronesia Challenge. Supporting this initiative, the Pacific Regional Oceanscape Program – Economic Recovery/Resilience (PROPER) is now in its second phase, focusing on state- level policies for community-based fisheries, reducing destructive practices, and advancing ecosystem-based management. The Blue Prosperity Micronesia (BPM) program, launched in 2019, aims to protect 30% of FSM’s marine waters (approximately897,000 km²). All four states have signed Memorandum of Understanding (MoUs) to support BPM, committing them to activities such as Marine Spatial Planning to ensure sustainable and inclusive use of FSM’s extensive ocean resources. Furthermore, FSM is receiving support from the Global Ocean Acidification Observing Network (GOA- ON) and NOAA Ocean Acidification Program (NOAA OAP) to reduce ocean acidification, alongside initiatives at the national and state levels to ban single-use plastic and promote circular economic practices. The measures for oceanic resource management and developing blue economy activities are considered as key development priorities under the SDP (2024-2043). In support of these priorities, College of Micronesia-FSM (COM-FSM) plans to launch new climate- focused courses in marine science and blue economy. The Electronic Monitoring (EM) Program of FSM, backed by the Nature Conservancy’s Tuna Transparency Technology (T- 3) Challenge, the Forum Fisheries Agency (FFA), and Secretariat of the Pacific Community (SPC), has advanced fisheries governance, ensuring transparency in tuna fisheries within the FSM EEZ. FSM has also developed a Management Plan for Fish Aggregating Devices (FADs) and led regional efforts to adopt non-entangling FADs. Marine protection efforts are supported by the Protected Areas Network Policy Framework (PANPF), which covers marine sites alongside terrestrial areas. Chuuk has committed to establishing new Marine Protected Areas (MPAs) with strong community engagement in outreach and education.

6.5 Public Health The public healthcare system in FSM is primarily managed at the state level (Yap, Pohnpei, Chuuk, Kosrae) through a three-tier structure: community dispensaries, state hospitals, and referrals to hospitals abroad.46 Healthcare delivery is also supported through partnerships with affiliated entities such as US military programs, as outlined in the Compact of Free Association (CFA) treaty47. Urban areas are generally better equipped than rural/outer islands, leading to persistent issues in service quality and access for rural communities. Key challenges in the healthcare system include resource limitations and lack of funding, dependence on aid, inconsistent delivery across states, limited 46 Federated States of Micronesia Health Services in Relation to Medical Services . Available at https://www.paclii.org/journals/fJSPL/vol06/3.shtml 47 III.E.2.b.v.a. Public and Private Partnerships - Federated States of Micronesia - 2023. Available at https://mchb.tvisdata.hrsa.gov/Narratives/IIF4HealthReform/4cb122c1-e9f3-4e3d-908f-820b070e0577 46 surveillance infrastructure, shortage of skilled workers, and lack of specialized services. Climate change is projected to negatively impact public health in FSM, increasing the prevalence of vector-borne diseases (VBD, such as dengue fever, malaria, Zika, and Chikungunya virus, as well as food borne disease (FBD), like Salmonella, E. coli, and Staphylococcus aureus, and waterborne diseases (WBD), including diarrheal pathogens, gastroenteritis and leptospirosis48. According to WHO data, the incidence of tuberculosis has also worsened since 202249. Extreme events such as typhoons and floods exacerbate outbreaks and emergencies, highlighting the need for health systems in FSM, at both national and state levels, to adapt to the increased environmental health burdens. MEASURES Table 11: Adaptation Priority Area – Public Health # Measures Conditionality SDG Goals A25 Establish a laboratory and surveillance system to Conditional detect and monitor VBD, WBD, and FBD, to enable rapid response and control of outbreaks A26 Provide medical personnel and public health officials Conditional with training in the detection and treatment of VBD, WBD, and FBD A27 Equip hospitals and other relevant medical facilities Conditional to receive and effectively treat patients suffering from VBD, WBD, and FBD The proposed measures aim to strengthen FSM’s public health resilience by improving early detection, preparedness, and treatment capacity for VBD, WBD, and FBD. Establishing a laboratory and surveillance system will enable real-time monitoring, rapid response, and control of outbreaks, thereby reducing the risk of widespread transmission. Training medical personnel and public health officials will enhance diagnostic accuracy, case management, and community-level awareness, ensuring timely interventions. Equipping hospitals and facilities with the necessary tools and resources will improve patient care and outcomes. Overall, FSM’s health system is witnessing a positive change through telemedicine, mobile outreach, and community-led care. Remote islands are now being covered under initiatives like “Health on the Move”50. 48 Micronesia. National Communication (NC). NC 3. Biennial Update Report (BUR). BUR 1. Available at https://unfccc.int/sites/default/files/resource/NC3%20BUR1%20MICRONESIA%20UNFCCC.pdf 49 WHO Data . Available at https://data.who.int/countries/583 . Available At 50 Federated States Of Micronesia Second Voluntary National Review 2 25 https://img1.wsimg.com/blobby/go/03465d55-d45f-4daf-a19f- 877991a60874/10076_UN_FSM_VNR_2025_V15_LR.pdf?fbclid=IwZXh0bgNhZW0CMTAAYnJpZBExZ3MwS3hDSUJyY3d pYk4zTgEePaIH0RW9tLwE_mYMwIjQMhCKpfwuk7V2XR8PnlA41cWysX15J_8I2uzmFxo_aem_qvwF1K0FWfIeAHomn2z 47 Measures A25, A26, and A27 emphasize the availability of diagnostic services, capacity building for staff at all levels of the healthcare system, and the equipping of medical facilities, aligning with the strategic priorities of the FSM SDP (2024-2043). At the state level, Kosrae and Pohnpei plan to establish laboratories by 2030 to detect and monitor VBD/WBD/FBD, equip facilities and run periodic trainings with Pacific Island Health Officers Association (PIHOA)/WHO through 2035. PIHOA has already led a multi-agency vector-surveillance & outbreak-response training in Pohnpei (Nov 2024). At the national level, FSM is implementing a project “SAP051: Increasing resilience to the health risks of climate change in the Federated States of Micronesia” funded by GCF and executed by SPC to strengthen climate-proof public health systems. The project will focus on improving early warning interventions and help in establishing and improving the surveillance of climate-related FBD, WBD, and VBD51. The project will also focus on improving the health workforce and technical staff capacity to monitor and respond to climate-sensitive diseases. FSM is also a part of the newly launched Pacific Vector Network, under the Pacific Public Health Surveillance Network (PPHSN). PVN will help member countries like FSM through digital tools for collecting and sharing vector surveillance data.52

6.6 Climate Resilient Infrastructure FSM faces significant vulnerability to climate change impacts due to its dispersed geography and reliance on coastal infrastructure. Roads, ports and airports are vital for connectivity and trade, yet are increasingly threatened by rising sea levels, storms, flooding and other extreme weather events. Strengthening infrastructure resilience is thus central to FSM’s adaptation strategy, ensuring continued mobility and economic activity. The FSM road network faces various vulnerability issues, including: (i) coastal exposure to sea-level rise, storm surges, and wave action during very high tides and typhoons; (ii) inland flooding and landslides during extreme rainfall events and (iii) accelerated pavement deterioration caused by extreme weather and rising water tables in some locations. For instance, in 2015, Typhoon Maysak wiped out 90 percent of key agricultural crops in Chuuk and Yap, affecting 29,000 people and causing US$8.5 million in damages. Moreover, as drought and sea level rise are exacerbated by regional El Niño-Southern Oscillation (ENSO) processes, atoll communities increasingly rely on imported food and water during times of stress. Extreme spring tides, amplified by se-level rise, lead to severe are marine inundation that damages critical coastal infrastructure, particularly yQg 51 SAP051: Increasing Resilience to The Health Risks of Climate Change in The Federated States of Micronesia. Available At Https://Www.Greenclimate.Fund/Sites/Default/Files/Document/Funding-Proposal-Sap051.Pdf 52 The Launch of The Pacific Vector Network: Connecting Pacific Island Countries and Areas to Prevent and Control Vector-Borne Diseases. Available At Https://Pacmossi.Org/Carbon/Assets/0007e9/000005/S13071-025-06760-9.Pdf 48 on low-lying atoll islets. Investing in climate-resilient infrastructure can promote sustainable and equitable growth, representing a significant adaptation opportunity for FSM. By climate-proofing all major island ring roads, arterial roads, airport access roads, and major ports, and by upgrading docks to be larger, stronger, and compliant with International Ship and Port Facility Security (ISPS) standards, FSM can protect l trade flows, fisheries, and disaster response operations from climate-induced disruptions. The adoption and enforcement of climate-resilient building codes and engineering standards across all new infrastructure projects and key public utility systems will ensure that future investments account for sea-level rise, stronger storms, and long-term climate risks. MEASURES Table 12: Adaptation Priority Area – Climate Resilient Infrastructure # Measures Conditionality SDG Goals A28 Climate-proof land transport corridors, access Conditional routes and other essential • A28.1: Elevate road section • A28.2: Improve drainage system • A28.3: Reinforce embankments against erosion and sea-level rise A29 Enhance port and harbor resilience to maintain Conditional supply chains by climate proofing 100% of major ports by 2035 • A29.1: Extend docks and upgrade them to be larger, stronger, and compliant with International Ship and Port Facility Security (ISPS) standards • A29.2: Increase availability and use of eco- friendly equipment and facility at the port side A30 Strengthen airports and runways to maintain air Conditional connectivity A31 Climate-proof key public utility systems (electricity, Conditional water, wastewater, public transportation, telecom, others) and new infrastructure through national building codes Resilience is a cross-cutting theme in the IDPs (2025-2034), which include projects for coastal protection, continuity planning, and upgrades to public facilities designed to withstand storms and sea level rise. These initiatives align closely with NDC 3.0 measures 49 and require significant investments for implementation. However, the SDP (2024–2043) estimates that FSM needs over US$1.2 billion for infrastructure improvements by 2035, with current financing covering only about 30% for this requirement. At the state-level, Kosrae has proposed an improvement plan for Okat Port, which includes constructing a new terminal (AV3) construction, extending the runway (AV2), enhancing navigation aids, and expanding the seaport to international standards (MA1–MA3). These projects align with the SDP and the FSM Airport Master Plan.

6.7 Disaster Risk Management Disaster Risk Management is both critical and difficult in a geographically dispersed SIDS such as FSM. The communities face numerous possible threats exacerbated by climate change, including typhoons, landslides, droughts, earthquakes, and sea level rise.53 These threats result in the loss of economic assets, damage to infrastructure, disruption of livelihoods, and reduced food security. For example, the drought conditions that affected Pohnpei, Yap, and Chuuk in 2024 left nearly 21,000 people in urgent need of water and food assistance, prompting the government to declare a national emergency. Although US$1.2 million was allocated to the Disaster Relief Fund, along with support from UNICEF, the scale of need highlighted that far more assistance was required54. According to the Voluntary National Review 2025, while over 40 municipalities have disaster preparedness plans, implementation gaps remain, particularly in remote areas. Additionally, FSM faces significant risk of oil spills in Chuuk Lagoon due to numerous World War II (WWII) shipwrecks, where effective recovery and safe disposal of oil are critical concerns. MEASURES Table 13: Adaptation Priority Area – Disaster Risk Management # Measures Conditionality SDG Goals A32 Enhance emergency preparedness through strong planning and appropriate resources buildup • A32.1: Develop nation and state-wide GIS Conditional maps for identification of vulnerable communities A33 Enhance emergency response through expediting inter-state transportation by securing additional Conditional rescue vessels 53 Federated States of Micronesia - Disaster Management Reference Handbook . Available At Https://Www.Theprif.Org/Sites/Theprif.Org/Files/2020-08/Fsm%20disaster%20management%20ref%20hdbk.Pdf 54 Unicef Pacific: Drought Emergency Response For The North Pacific - Federated States Of Micronesia And Republic Of Marshall Islands (April 2024). Available At Https://Reliefweb.Int/Report/Micronesia-Federated- States/Unicef-Pacific-Drought-Emergency-Response-North-Pacific-Federated-States-micronesia-and-republic- marshall-islands-april-2024 50 A34 Enhance response and recovery through provision of climate resilient warehouse and shelters • A34.1: Create capacity and warehouse(s) for pre-positioning of humanitarian supplies at National and State levels • A34.2: Construct and retrofit multi-purpose Conditional emergency shelters to withstand climate extremes like typhoons and floods • A34.3: Offer regular community training and drills on shelter use, management, and emergency preparedness A35 Upgrade vessels, equipment, and storages to better Conditional handle oil spills Note: The sequence of measures involves a value-chain approach with preparedness followed by response and then recovery The proposed measures will significantly improve FSM’s disaster preparedness, response, and recovery capabilities. Developing nationwide and state-level GIS maps will enable identification of vulnerable communities, guiding targeted planning and resource allocation. Expanding interstate transportation with additional rescue vessels will strengthen mobility during emergencies; while establishing climate-resilient warehouses designed to withstand typhoons and floods will protect lives and reduce disruption during crises. Regular community training and drills will enhance local readiness and resilience. Upgrading vessels, equipment, and storage facilities for managing oil spills will further safeguard marine and coastal ecosystems, preventing compounding disaster risks. Together, these actions create a more robust, community-centered disaster management system for FSM. FSM has already updated its National Disaster Response plan in 2025, and Pohnpei plans to revisit and update its own disaster plan in alignment with this national effort. To identify vulnerable communities and high-risk areas, GIS tools such as PopGIS3, OpenStreetMap, and the Digital Atlas of Micronesia are already in use. Pohnpei aims to launch a state GIS mapping initiative with national and regional partners to complete comprehensive mapping by 2035. Investment in intra- and inter-state cargo and transportation vessels has been identified as a key measure under disaster preparedness, enhancing emergency response capacity to deliver vital supplies and to evacuate persons from disaster areas or those in need of medical assistance. To strengthen emergency response and inter-state mobility, Pohnpei plans to upgrade and/or secure additional vessels by 2035. Concurrently, the national-level SMART Plan targets construction of warehouses and development of search and rescue plans across all the 4 states, providing the operational backbone for preparedness, response, and recovery. The ongoing projects include the “Disaster Risk Management Program” by VITAL and Potentially Polluting Wrecks (PPW) initiative. The PPW project, funded by the Department of Foreign Affairs and Trade (DFAT) of Australia, and supported by Japan Mine Action Service (JMAS) and Major Projects Foundation (MPF), aims to enhance management in Chuuk Lagoon through technical information, on-site oil recovery, risk surveys of high- 51 risk wrecks, and strengthened contingency training.55 FSM has also leveraged the Pacific Islands Regional Marine Spill Contingency Plan (PACPLAN) in formulating its national plan and operationalizing oil-spill response. However, safe final disposal of recovered oil remains a gap in FSM’s disaster management strategy. 7. LOSS AND DAMAGE FSM is one of the most climate-vulnerable nations globally, facing both extreme events and slow-onset processes that cause irreversible loss and damage. Intensifying typhoons, sea level rise, saltwater intrusion, and coastal erosion threaten the very habitability of many islands. Damage to homes, schools, hospitals, transport links, and community facilities has cascading impacts on health, education, food security, and livelihoods. Consequently, addressing Loss and Damage is a critical pillar of FSM’s NDC, reflecting the nation’s limited adaptive capacity and the pressing need for international support to address climate impacts that exceed adaptation thresholds. FSM already experiences frequent climate-induced disasters. Typhoon Maysak (2015) and Typhoon Wutip (2019) caused widespread destruction of housing, crops, and infrastructure, with recovery costs far exceeding national resources. More recently, Typhoons Bebinca (2024) and Kong Rey (2024) have underscored recovery gaps in outer islands, particularly in housing and food systems. Sea level rise has inundated taro patches and freshwater lenses in outer islands, while coastal erosion threatens the relocation of communities from low-lying atolls. Non-economic losses, including damage to cultural heritage sites, community displacement, and the erosion of traditional livelihoods, are becoming increasingly evident. Currently, post-disaster response in FSM is largely financed through emergency aid and Compact support; however, systematic mechanisms to quantify and redress loss and damage remain underdeveloped. Gaps remain in compensation, insurance, and addressing non-economic losses, necessitating the establishment of a robust monitoring framework, resilient infrastructure, and a comprehensive strategy at the national and state levels. This will require dedicated international financing streams, including the Loss and Damage Fund under the UNFCCC in addition to Compact and development partners. At COP28, Parties operationalized the Loss and Damage Fund with the World Bank as interim trustee, establishing new channel for dedicated finance. COP29 built on this progress by affirming arrangements for disbursement from 2025, with specific emphasis on equitable access for Small Island Developing States. Recent international negotiations have advanced support for vulnerable countries like FSM making timely and predictable access to these resources will be essential for strengthening national efforts and contributing to a more resilient and sustainable future. 55 Enhance efforts to address Oil Spill Risk from Potentially Polluting Wrecks in the Federated States of Micronesia - Phase 2. Available at https://www.sprep.org/project/enhance-efforts-to-address-oil-spill-risk-from-potentially- polluting-wrecks-in-the-federated-states-of-micronesia-phase-2 52 8. MEANS OF IMPLEMENTATION Means of Implementation encompass the resource requirements and cross-cutting enabling factors such as finance, capacity building, inclusivity, policy frameworks, and private sector participation, necessary to deliver FSM’s NDC 3.0.

8.1 Summary - Measures & Conditionality The following table summarises the measures proposed under NDC 3.0 for Mitigation and Adaptation sectors. Achievement of majority of the measures is conditional i-e- it is contingent upon the availability of international financing. Such financing is then directed towards conducting pre-feasibility studies, building institutional and technical capacity, accessing appropriate technologies, and enabling the policy frameworks required to implement the conditional targets. Table 14: Measures – Mitigation & Adaptation # Measures Conditionality M1 Increase Renewable energy mix in electricity generation at grid level to Conditional 70% by 2030 and 80% by 2035 M2 Increase electricity access to 100% by 2035 Conditional M3 Improve energy efficiency across supply and demand systems Conditional M4 Increase Distributed Renewable Energy (DRE) production and use Conditional M5 Develop National Master Transport Plan and associated State Action Conditional Plans integrating land and marine transportation M6 Improve NMT (walkway, bicycling lanes) to allow more livable urban Conditional community M7 Increase shift to Public Transportation (PT) buses and ferries Conditional M8 Transition to electric and clean fuel alternatives for land, sea, and air Conditional transportation including increasing the share of e-Mobility M9 Increase clean cooking adoption using biogas, electric stove, and Conditional other clean options to 70% by 2035 M10 Develop policy on circular economy with a particular focus on waste Conditional reduction M11 Improve landfill site management and divert organic waste from Conditional landfill sites M12 Improve municipal solid waste and waste-water collection and Conditional treatment systems for reduced Methane release M13 Develop Integrated Land Management Plan and associated State Conditional Action Plans 53 M14 Increase forest conservation and restoration to increase the forest Conditional cover M15 Reduce methane release from agriculture through enhanced livestock Conditional productivity and utilization of organic fertilizers made from composting M16 Reduced HFCs use and leakages by aligning with the Kigali Conditional Amendment and attaining a 10% reduction in HFCs by 2029 and 30% reduction by 2035 A1 Protect land & water to reduce saltwater intrusion, erosion, and flood Unconditional risk A2 Adopt climate-resilient farming to improve crop tolerance to heat, Unconditional storms, and pests A3 Secure seed & livestock resources to ensure rapid recovery after Conditional climate shocks A4 Enhance water security to sustain farming during droughts and dry Conditional spells A5 Scale sustainable aquaculture while preserving reefs by operating Conditional hatchery-based aquaculture for clams, sandfish, and other species A6 Strengthen food value chains to produce more (for local consumption Conditional and exports), minimize post-harvest loss, grow market linkages, and increase farmer income A7 Enable monitoring systems, policies, finance, and capacity building to Conditional unlock climate-smart agriculture investment by enhancing farmers' cooperatives A8 Prevent and manage invasive species (IS) to protect croplands Conditional A9 Increase clean drinking water access to 100% by 2035 Conditional A10 Improve management and protection of watersheds Conditional A11 Add new fresh ground and surface water sources Conditional A12 Repair, maintain and expand waste-water treatment systems Conditional A13 Protect and restore mangroves and coastal vegetation to provide Unconditional natural coastal defense A14 Conserve terrestrial forests and wetlands by managing 30% terrestrial Unconditional resources by 2035 A15 Expand and manage protected areas (PAs) to conserve key species Conditional and habitats 54 A16 Promote sustainable land use and ecosystem-based adaptation by Conditional developing/updating Integrated Land Management Plans and Shoreline Development Plans A17 Manage tuna and high-seas resources to sustain national revenue Conditional and ocean health A18 Restore, manage and protect more than 50% of coastal marine Conditional habitats like coral reefs to sustain nearshore fisheries by 2035 A19 Strengthen sustainable management of 50% marine resources and Conditional restrict commercial fishing in 30% of marine area by 2035 A20 Develop blue economy activities to diversify ocean-derived income Conditional A21 Strengthen marine governance, surveillance & data systems in 30% of Conditional marine waters by 2035 A22 Protect and monitor marine ecosystems from acidification by Conditional establishing long-term ocean acidification monitoring stations and piloting adaptative strategies A23 Strengthen coastal protection by regulating beach sediment removal Conditional A24 Reduce ocean pollution & support healthy marine ecosystems Conditional A25 Establish a laboratory and surveillance system to detect and monitor Conditional VBD, WBD, and FBD, to enable rapid response and control of outbreaks A26 Provide medical personnel and public health officials with training in Conditional the detection and treatment of VBD, WBD, and FBD A27 Equip hospitals and other relevant medical facilities to receive and Conditional effectively treat patients suffering from VBD, WBD, and FBD A28 Climate-proof land transport corridors, access routes and other Conditional essential A29 Enhance port and harbour resilience to maintain supply chains by Conditional climate proofing 100% of major ports by 2035 A30 Strengthen airports and runways to maintain air connectivity Conditional A31 Climate-proof key public utility systems (electricity, water, wastewater, Conditional public transportation, telecom, others) and new infrastructure through national building codes A32 Enhance emergency preparedness through strong planning and Conditional appropriate resources buildup A33 Enhance emergency response through expediting inter-state Conditional transportation by securing additional rescue vessels A34 Enhance response and recovery through provision of climate resilient Conditional warehouse and shelters 55 A35 Upgrade vessels, equipment, and storages to better handle oil spills Conditional

8.2 Resource Requirements FSM’s geographic dispersion, limited domestic resources, and vulnerability to climate impacts pose significant challenges for the implementation of its NDC. While the country has identified priority projects, its ability to execute these actions is constrained by institutional, technical, and financial capacity. Therefore, the implementation of FSM’s mitigation and adaptation measures remains conditional on scaled-up international climate finance, which will be used for technology transfer, technical assistance, policy enablement, and capacity development. According to the National and State-level IDPs (2025-2034), several projects have been identified as priority investments requiring resource allocation. The IDPs estimate that FSM will need an aggregate of US$1,402.4 million for infrastructure development over the next 10 years. Adaptation accounts for the larger share (US$1,162.4 million; 82.9%), driven by high‑value resilience packages in climate resilience infrastructure, transport corridors, water and wastewater systems, and ports and airports, relative to mitigation investments. Mitigation investment sectors including electricity, waste, and transport have limited representation as of now. State-level requirements account for ~88.2% of the total funding with 'Climate Resilient Infrastructure' emerging as the single largest sectoral need (~US$643.7 million). This underscores the areas where implementation efforts and financing will require the most coordination. 17.1% 82.9% Adaptation Mitigation Figure 6: Adaptation & Mitigation Fund Requirements as per National & State-level IDPs (2035) 56 2.7% 0.4% 0.5% 13.2% 1.8% 2.7% 47.3% 11.6% 19.9% Climate Resilient Infrastructure Public Health Water Oceans Disaster Risk Management Food Electricity Waste Transport Figure 7: Sectoral Fund Requirements as per National & State-level IDPs (2035) The NDC measures listed under NDC 3.0 covering both mitigation and adaptation sectors is estimated to require higher investments than envisaged by the IDPs till 2035. Mobilizing these investments, beyond ongoing and budgeted commitments, through Compact allocations, development partners, and climate and environment funds will be critical to advancing FSM’s NDC commitments. Achieving the targets set for 2030 and 2035 will also depend on investments in technology deployment, local entrepreneurship, and regional supply chains, supported by concessional finance and grant mechanisms mobilized under NDC 3.0. Key development partners and climate and environment funds identified for investments in the project pipeline include the COFA, multilateral banks and agencies such as the Asian Development Bank (ADB), World Bank, and US Agency for International Development (USAID); bilateral partners including Australia’s Department of Foreign Affairs and Trade (DFAT), Japan International Cooperation Agency (JICA), and the European Union (EU) and China; and international mechanisms such as the United Nations Development Programme (UNDP) and the Green Climate Fund (GCF).

8.3 Cross-Cutting Enablement In addition to resources, FSM is working towards ensuring alignment of enablement factors within NDC 3.0. FSM aims to fully integrate Gender Equality, Disability, and Social Inclusion (GEDSI) principles into NDC 3.0 through state-level SMART Plans. This integration guarantees that women, youth, persons with disabilities, and marginalized groups are included in decision-making process, capacity-building, and implementation processes. It also commits to advancing education and capacity building by embedding climate curricula, vocational training, and community-based learning into national and state programs. Institutions such as COM-FSM contribute through research, infrastructure development, capacity building, extension services, and the expansion of online and hybrid programs to reduce inter-island travel and emissions while promoting 57 equity and resilience. Furthermore, it aims to align NDC 3.0 with existing frameworks such as the Climate Change Act (2014), the Strategic Development Plan (2024–2043), and the National Energy Policy (2024–2050). In parallel, FSM intends to mobilize climate finance by linking state- level IDPs and Smart Plans with international mechanisms such as the GCF and the Loss and Damage Fund. The country seeks to promote private sector participation through incentives, concessional finance, and partnerships in renewable energy, sustainable fisheries, resilient agriculture, eco-tourism, and circular economy initiatives.

8.4 GEDSI FSM is a culturally diverse nation, where traditional structures significantly shape social life. In Chuuk, Pohnpei, and Kosrae, matrilineal system prevails, with land passing through the mother’s clan, allowing women to play active roles in land management and decision- making. Conversely, Yap and some outer islands in Pohnpei follow patrilineal systems where land is inherited through the father’s lineage. Across the nation, men and women maintain complementary responsibilities. While men typically engage in tree cultivation and work as carpenters, builders, and fishers, women manage families, harvest crops, gather seafood, and produce artisan goods such as baskets, oils, and woven clothes. These practices reflect enduring traditional safety nets that have supported households in times of hardship. Despite these traditions, modernization and the shift to a monetized economy from a subsistence economy have eroded women’s historical influence in food production and resource management, narrowing their roles in the formal economy. Today, women account for less than 35% of the labor workforce and ~27% of the formal workforce, with participation in STEM and technical programs under 15%56. While FSM elected its first woman senator in 2023, broader political representation remains limited and women continue to face barriers in employment, access to finance, and public decision-making. Gender-based violence services are available in all states; however, the coverage of these services remains severely limited in the outer islands. Persons with disabilities face similar challenges with only about 13% of the poorest households with persons with disabilities having access to essential services such as healthcare, education, or communication tools. To address these gaps, FSM has established Disability Coordination Offices in all four states and continues to roll out gender-responsive action plans and youth-focused digital and vocational skills programs. These initiatives are supported by the principle of Leaving No One Behind (LNOB) 56 Federated States Of Micronesia Second Voluntary National Review 2 25. Available At https://img1.wsimg.com/blobby/go/03465d55-d45f-4daf-a19f- 877991a60874/10076_UN_FSM_VNR_2025_V15_LR.pdf?fbclid=IwZXh0bgNhZW0CMTAAYnJpZBExZ3MwS3hDSUJyY3d pYk4zTgEePaIH0RW9tLwE_mYMwIjQMhCKpfwuk7V2XR8PnlA41cWysX15J_8I2uzmFxo_aem_qvwF1K0FWfIeAHomn2z yQg 58 embedded in the Strategic Development Plan (2024–2043), which prioritizes inclusive governance, improved data systems, and targeted services for marginalized groups. FSM demonstrates growing institutional alignment with gender and social inclusion goals. The forthcoming National Gender Equality Policy (2025–2030) will provide a framework for women’s leadership, disability inclusion, finance and monitoring, gender-based violence prevention, and equitable participation in governance, health, education, and climate resilience. Gender focal points have been reestablished across ministries, and a Gender Development Unit now operates within the Department of Health and Social Affairs. FSM’s commitment is further reinforced by its ratification of CEDAW, alignment with the SDGs, and adoption of the Pacific Gender Roadmap. This agenda is increasingly embedded in climate action. FSM has integrated GEDSI into this NDC and plans to update the Nationwide Disaster Risk Management and Climate Change Policy through the GCF-supported National Adaptation Plan project. Local initiatives such as “Women’s Work: Empowering Women to Restore Coastal Ecosystems and Strengthen Food Security in Micronesia” further illustrate how women’s traditional knowledge and community leadership are being mobilized for climate adaptation and resilience. While systemic challenges such as limited disaggregated data and weak enforcement of protections remain, FSM is steadily building an inclusive foundation. By mainstreaming gender, disability, and youth considerations into policies and investments, and by partnering with regional and international organizations, FSM is reaffirming its commitment to a society where resilience to climate change is shared by all. 59 9. ANNEXURE

9.1 Annexure 1: Information necessary for clarity, transparency, and understanding of FSM’s NDC 1. Quantifiable information on the reference point (including, as appropriate, a base year) (a) Reference year(s), base The GHG emissions reduction targets in this NDC are defined for year(s), reference period(s) or the year 2030 and 2035 and measured against a Business-as-Usual other starting point(s) scenario for those respective years; projected from 2024 as-is baseline (b) Quantifiable information on Total GHG emissions in FSM in 2018 were 174 Gg CO2e, of which the reference indicators, their the values in the reference year(s), ▪ Energy sector contributed 118.5 Gg CO2e base year(s), reference ▪ Waste sector contributed 27.24 Gg CO2e period(s) or other starting ▪ AFOLU sector contributed 22.35 Gg CO2e point(s), and, as applicable, in the target year (c) Target relative to the Overall GHG emissions reduction of 31% in 2030 and 35% in reference indicator, expressed 2035 compared to BaU levels in the same years* numerically, for example in ▪ Reduced GHG emissions in the electricity sector by percentage or amount of 66% and 28% in waste sector in 2030 reduction ▪ Reduced GHG emissions in the electricity sector by 76% and in waste sector by 39% in 2035 *These GHG reduction numbers are only for the modelled measures, which are subsets of all NDC measures. Actual GHG reduction with all the measures implemented would be higher. (d) Information on sources of The government of FSM’s GHG inventory was developed as part of data used in quantifying the the Biennial Update Report (2018) reference point (e) Information on the The reference indicators for national and sectoral emissions may be circumstances under which the updated to reflect the most recent information once the next GHG Party may update the values of inventory is published. Information on any updates made will be the reference indicators reflected in FSM’s Fourth National Communication to the UNFCCC. 2. Time frames and/or periods for implementation (a) Time frame and period of Timeframe for NDC implementation is 2025 to 2035. implementation (b) Whether it is a single-year or FSM is committed to multi-year targets for the years 2030 and multi-year target, as applicable 2035, and this varies across different sectors and their measures and sub-measures 3. Scope and Coverage (a) General description of the Please refer to 1(c) above for the sectoral coverage and targets target (b) Sectors, gases, categories Sectors covered: Energy (electricity, transport, energy-others), and pools covered by the Waste, AFOLU, and IPPU nationally determined Gases covered: Targets will apply to gases: Carbon dioxide (CO2), contribution, including, as Methane (CH4) and Nitrous oxide (N2O). All targets are expressed in applicable, consistent with CO2e. Intergovernmental Panel on Geographic coverage: Countrywide Climate Change (IPCC) guidelines; (c) How the Party has taken FSM commits to extend, over time, the scope of its NDC to all into consideration paragraphs categories of anthropogenic emissions in line with paragraph 31 (c). 31 (c) and (d) of decision 60 1/CP.21: (d) Mitigation co-benefits Food: Climate-smart practices will lead to improved soil carbon resulting from Parties’ sequestration; better pest and livestock management will lead to adaptation actions and/or reduced methane/N₂O; strengthened food value-chain will lead to economic diversification plans, less reliance on imported food, cutting transport-related emissions including a description of specific projects, measures, Biodiversity: Protection and restoration of mangroves and coastal and initiatives of Parties’ vegetation will lead to long-term carbon storage and mangrove adaptation actions and/or ecosystems serve as critical carbon sinks economic diversification plans. Ocean: Healthy ocean ecosystems will enhance carbon sequestration and sustainable fisheries will reduce fuel-intensive overfishing Climate Resilient Infrastructure: Climate-proofing of key public utility systems and new infrastructure through national building codes will standardize energy efficiency standards and lower electricity use and emissions 4. Planning Processes (a) Information on the planning processes that the Party undertook to prepare its NDC and implementation plans, including: (i) Domestic institutional FSM’s NDC 3.0 has been prepared at the national level through arrangements, public extensive consultations and validation involving both national and participation, and engagement state stakeholders, in alignment with the GEDSI principles. Broad- with local communities and based consultations engaged traditional leaders, women and youth Indigenous peoples, in a groups, civil society, and the private sector. gender-responsive manner; (ii) Contextual a. National ▪ FSM is an independent sovereign nation composed of four states matters, circumstances, Yap, Chuuk, Pohnpei, and Kosrae, stretching across the western including, such as Pacific Ocean. With 607 islands spread across an EEZ of nearly 3 inter alia, as geography, million km² but only 702 km² of land, FSM is one of the world’s appropriate: climate, most geographically dispersed nations, heightening service National economy, delivery and resilience challenges. circumstances, sustainable such as development ▪ FSM experiences a tropical maritime climate with high rainfall and geography, and poverty strong influence of the El Niño–Southern Oscillation (ENSO). The climate, eradication country has faced repeated climate-related disasters, including economy, Typhoon Maysak (2015) and Typhoon Wutip (2019). Long-term sustainable trends show warming of ~0.8–0.9°C, rising sea surface development, temperatures driving coral bleaching, rapid sea-level rise of ~19 and poverty cm over the past 30 years near Pohnpei, and increasing ocean eradication acidification. ▪ Climate projections indicate rising air temperatures of 0.7°C by 2030 (and up to 1.9°C by century’s end), sea-level rise of ~20 cm by 2050 and ~74 cm by 2100, more intense rainfall extremes, and fewer but more intense cyclones. These hazards pose existential risks for low-lying atolls and coastal communities, threatening land, water, food security, livelihoods, and cultural heritage. ▪ FSM’s population in 2024 is estimated at ~113,160, with a modest urbanization rate of ~23%. Out-migration remains significant (net migration −1,104 in 2024), reflecting socio-economic and climate pressures. Gender dynamics differ by state, with both matrilineal and patrilineal systems shaping land tenure and decision-making. Women play key roles in food security and community resilience but remain under-represented in leadership, with only one 61 woman senator elected in 2023. ▪ The economy remains highly dependent on subsistence farming, fisheries, U.S. Compact funding, and remittances, with limited private sector diversification. In 2023, GDP per capita was ~USD 4,084, with services contributing ~69% of GDP, agriculture/fisheries ~23%, and industry ~5%. Fisheries generate over USD 70 million annually in revenues. In 2019, the tourism sector generated US$18 million in revenues and directly employed about 2.5% of the workforce. Visitor arrivals 18,019, with 60% to Pohnpei, 28% of visitors arrived in Chuuk, and 6% each to Kosrae, and Yap. After several years of decline (2017 and 2019), arrivals have rebounded with Yap recording 1,825 international stayover visitors between January-August 2024, nearly double the 945 visitors in 2023, a 93% increase. ▪ FSM reaffirms its commitment to the Paris Agreement and the 1.5°C survival threshold for SIDS. The National Energy Policy (2024–2050) sets the pathway to renewable energy, efficiency, and low-carbon development, while NDC 3.0 integrates mitigation, adaptation, and resilience measures, reflecting both national priorities and the outcomes of the Global Stocktake. b. Best The preparation of FSM’s NDC 3.0 has leveraged extensive practices and consultations with both national and state stakeholders, ensuring experience inclusivity and alignment with state-level SMART Plans and sectoral related to the strategies. FSM has embedded its national development preparation of frameworks into the NDC and incorporated state-level priorities and the nationally Indigenous knowledge, making this NDC both nationally owned and determined contextually grounded. At the same time, FSM recognizes the need contribution to strengthen institutional capacity and data collection systems, including GHG inventories, to further enhance transparency and compliance with IPCC guidelines. c. Other FSM recognizes the urgency of collective action to address the contextual growing impacts of climate change and, in this spirit, its NDCs aspirations outline pathways to strengthen the climate resilience of and priorities communities. acknowledged when joining the Paris Agreement; (b) Specific information Not applicable applicable to Parties, including regional economic integration organizations and their member States, that have reached an agreement to act jointly under Article 4, paragraph 2, of the Paris Agreement including the Parties that agreed to act jointly and the terms of the agreement, in accordance with Article 4, paragraphs 16–18, of the Paris Agreement; (c) How the Party’s preparation In line with Article 14 of the Paris Agreement, the outcomes of the of its nationally determined first Global Stocktake in 2023 have informed the preparation of contribution has been FSM’s NDC 3.0. The NDC responds to the GST call for increased 62 informed by the outcomes of ambition by extending targets to 2035, strengthening long-term the global stock take, in planning, and reaffirming FSM’s renewable energy and efficiency accordance with Article 4, milestones. It also incorporates the recognition of a just and paragraph 9, of the Paris equitable transition as a guiding principle, ensuring that ambition is Agreement; pursued in a fair and inclusive manner. (d) Each Party with a nationally (i) How the economic The NDC defined in the process determined contribution under and social consequences of aims to safeguard food and water Article 4 of the Paris Agreement response measures have security, protect health, and that consists of adaptation been considered in strengthen livelihoods while action and/or economic developing the nationally reducing disaster risks. Adaptation diversification plans resulting determined contribution; measures are expected to in mitigation co-benefits generate economic opportunities consistent with Article 4, through sustainable agriculture, paragraph 7, of the Paris fisheries, aquaculture, and eco- Agreement to submit tourism. In addition to these information on: benefits, the measures will deliver mitigation co-benefits, including enhanced carbon sequestration, reduced reliance on imports, and greater energy efficiency, thereby linking climate action with sustainable economic and social development. (ii) Specific projects, measures, Please refer to 1 (d) and 3 (d) and activities to be implemented to contribute to mitigation co-benefits, including information on adaptation plans that also yield mitigation co-benefits. 5. Assumptions and methodological approaches, including those for estimating and accounting for anthropogenic greenhouse gas emissions and, as appropriate, removals: (a) Assumptions and The current methodological approach and metrics used by FSM are methodological approaches in accordance with the 2006 IPCC Guidelines for National used for accounting for Greenhouse Gas Inventories. The inventory has compiled GHG anthropogenic greenhouse gas emissions at Tier 1 and has utilized national energy statistics and emissions and removals default emission factors. corresponding to the Party’s nationally determined contribution, consistent with decision 1/CP.21, paragraph 31, and accounting guidance adopted by the CMA. (b) Assumptions and FSM’s NDC GHG baseline does not include all the major emission methodological approaches sources categorized by the IPCC due to a lack of credible data in the used for accounting for the AFOLU, IPPU, aviation and maritime sub-sectors. FSM will follow the implementation of policies and 2006 IPCC Guidelines for National GHG Inventories, and the 2019 measures or strategies in the Refinement to the 2006 IPCC Guidelines for National GHG nationally determined Inventories, using the Tier 1 approach and applying default emission contribution factors. FSM will also apply this approach when reporting progress towards the targets set in its enhanced NDC. FSM’s GHG inventory does not include all the five major emission sources categorised by the IPCC as some of them are not relevant in the country’s context. 63 Energy: Electricity generation and road and domestic marine transport are the main sources of emissions estimated in the inventory. Waste: Emissions (only methane) from the country’s waste sector were calculated using the IPCC Waste Model and will also be updated in the Methane Roadmap of FSM. Industrial Processes and Product Use: There are no large-scale industrial facilities in FSM, and the solvent use and product emissions are non-material. Hence, detailed records are not kept. Short-lived climate pollutants like HFCs are included in this category however, data on their usage or import is not available, hence a GHG model was not developed for the same. Agriculture, forest and other land use: Although shifting agriculture is practiced in FSM, the usual practice of farmers is to plant amongst cleared vegetation. Similarly, the size of ruminant stock is generally low. FSM has made attempts to calculate emissions from land-use but is constrained by the lack of recent data. (c) If applicable, information on Same as 5 (a) and 5(b) how the Party will take into account existing methods and guidance under the Convention to account for anthropogenic emissions and removals, in accordance with Article 4, paragraph 14, of the Paris Agreement, as appropriate (d) IPCC methodologies and Same as 5 (a) and 5(b) metrics used for estimating anthropogenic greenhouse gas emissions and removals (e) Sector-, category- or activity- (i) Approach to addressing Not applicable specific assumptions, emissions and subsequent methodologies, and removals from Natural approaches consistent with disturbances on managed IPCC guidance, as appropriate, lands; including, as applicable: (ii) Approach used to account Not applicable for emissions and removals from harvested wood products; (iii) Approach used to address Not applicable the effects of age-class structure in forests. (f) Other assumptions and methodological approaches used for understanding the nationally determined contribution and, if applicable, estimating corresponding emissions and removals, including: 64 (i) How the reference FSM’s GHG emissions were calculated using the methodology and indicators, baseline(s), and/or criteria provided in the Revised 2019 Refinement of the 2006 IPCC reference level(s), including, Guidelines for National Greenhouse Gas Inventories. Details are where applicable, sector-, described in 1(a), 1(b), 5(a) and 5(b). category- or activity-specific reference levels, are constructed, including, for example, key parameters, assumptions, definitions, methodologies, data sources and models used (ii) For Parties with nationally FSM’s NDC 3.0 covers non-GHG components in the adaptation determined contributions that section. These were identified and prioritized through (i) a contain non-greenhouse-gas structured literature review of national circumstances, policies, and components, information on programs, (ii) reference to existing technical studies and sector assumptions and assessments, and (iii) extensive consultations with national and methodological approaches state-level stakeholders. The process drew on lessons from NDC 2.0 used in relation to those as well as established national and regional frameworks, and components, as applicable initiatives such as the Blue Prosperity Micronesia (BPM) program and the Micronesia Challenge. (iii) For climate forcers included Not applicable in nationally determined contributions not covered by IPCC guidelines, information on how the climate forcers is estimated (iv) Further technical None information, as necessary (g) The intention to use FSM is committed to contributing to international discourse on voluntary cooperation under developing voluntary markets. Based on these discussions, FSM will Article 6 of the Paris identify mechanisms to use international market mechanisms to Agreement, if applicable achieve its NDC targets. 6. How the Party considers that its nationally determined contribution is fair and ambitious in the light of its national circumstances (a) How the Party considers FSM is among the world’s most climate-vulnerable nations, with a that its nationally determined negligible contribution to global GHG emissions (well below 0.01%). contribution is fair and Despite this, FSM has committed to ambitious action in its NDC 3.0 ambitious in the light of its by expanding sectoral coverage beyond energy to include transport, national circumstances; waste, cooking, oceans, and loss and damage, while extending its targets to 2035. FSM reaffirms its energy transition target of achieving 80% renewable energy in power generation, supported by milestones on efficiency and grid modernization. The NDC also integrates ambitious adaptation measures across food, water, health, and coastal protection, recognizing the dual importance of resilience and low-carbon development for national survival. (b) Fairness considerations, FSM’s NDC is anchored in the principle of common but including reflecting on equity; differentiated responsibilities and respective capabilities (CBDR-RC). With negligible historical emissions but extreme exposure to sea- level rise, cyclones, and ocean acidification, fairness lies in the fact that FSM is committing to enhanced ambition while requiring international support for implementation. Equity is embedded through the integration of Gender Equality, Disability, and Social Inclusion (GEDSI) principles, ensuring that women, youth, persons with disabilities, and marginalized groups are full participants and beneficiaries of climate action. (c) How the Party has FSM’s NDC 3.0 represents a clear progression beyond its previous 65 addressed Article 4, paragraph NDC by broadening sectoral coverage – transport, waste, oceans, 3, of the Paris Agreement; enhancing ambition, and explicitly including loss and damage as a cross-cutting area. The extension of targets to 2035 provides a longer-term planning horizon aligned with infrastructure cycles and investment strategies. By embedding just-transition principles, FSM is demonstrating that enhanced ambition can go hand in hand with fairness and inclusivity. (d) How the Party has The ambition of FSM’s NDC can be seen in the context of its small, addressed Article 4, paragraph geographically dispersed economy, limited fiscal and technical 4, of the Paris Agreement; capacity, and high reliance on external support under the Compact of Free Association. Nevertheless, FSM has introduced sectoral mitigation measures in energy, transport, waste, AFOLU, IPPU, and cooking, alongside adaptation measures in fisheries, agriculture, water, health, infrastructure, and ecosystems, laying the groundwork for economy-wide contributions over time. (e) How the Party has As a Small Island Developing State, and consistent with Article 4, addressed Article 4, paragraph paragraph 6 of the Paris Agreement, FSM has the option to prepare 6, of the Paris Agreement. and communicate strategies, plans, and actions that reflect its special circumstances. FSM is exercising this flexibility through its state-level SMART Plans and other sectoral strategies, which provide the basis for implementing NDC measures aimed at reducing GHG emissions while strengthening resilience. These plans translate national priorities into actionable measures at the state level, ensuring that mitigation and adaptation actions are tailored to local contexts and capacities. 7. How does the nationally determined contribution contribute towards achieving the objective of the Convention as set out in Article 2 (a) How the nationally FSM’s NDC contributes to the objective of the Convention under determined contribution Article 2 by placing the country on a low-emission pathway. contributes towards achieving Compared to a Business-as-Usual projection of 222 ktCO₂e in 2030 the objective of the Convention and 231 ktCO₂e in 2035, the implementation of measures can as set out in Article 2; reduce emissions to 153 ktCO₂e in 2030 and 149 ktCO₂e in 2035, representing reductions of roughly 31% and 35% respectively, while safeguarding development priorities. (b) How the nationally Consistent with the objectives of the Paris Agreement and aim to determined contribution achieve the long-term temperature goal set out in Article 2 contributes towards Article 2, paragraph (a) and Article 4, paragraph 1 of the Paris Agreement, paragraph 2(a), and Article 4, FSM has committed to achieving an 80% share of renewable energy paragraph 1, of the Paris in power generation by 2035, supported by grid modernization and Agreement. efficiency improvements, to decarbonize the energy sector, the country’s largest source of emissions. Complementary actions in transport, waste, and cooking will further reduce fossil fuel dependence, while the protection and restoration of mangroves, wetlands, and forests will enhance long-term carbon sequestration. The updated NDC of FSM represents the small island country’s commitment to limit the increase in the global average temperature to well below 2°C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels. 66 67 68