Climate change poses a direct threat to the economy and people's livelihoods, Finance Minister Hassan Zareer said today.

Speaking at the Maldives Finance Forum at DusitD2 Feydhoo Resort, Minister Zareer said investment in renewable energy, environmental protection and water security was essential for the country's development.

He stressed the importance of protecting marine ecosystems to safeguard the islands and sustain key industries such as tourism and fisheries.

"Climate risk is an economic risk. And economic risks need to be managed," he said.

Minister Zareer said the state budget, international assistance and concessional loans remained important for developing resilient infrastructure and protecting essential services.

However, he said private sector capital and long-term investments from financial institutions were also necessary to meet these needs without increasing the debt burden on future generations.

He said the accreditation of Maldives Finance and Leasing Company (MFLC) as the country's first entity to gain direct access to the Green Climate Fund would strengthen efforts to secure international climate financing.

The government is also pursuing the National Sustainable Finance Roadmap and the National Financial Inclusion Strategy, he said.

Minister Zareer said the success of green finance should be measured by the projects delivered and their tangible outcomes.

Such investments should contribute to stronger infrastructure, reduced dependence on oil for electricity generation and greater financial security for Maldivians, he said.