A Green Fund report published on 19 April 2026 by the Ministry of Finance and Public Enterprises shows that Maldives continues to accumulate a substantial environmental financing surplus, with collections far outpacing spending despite the data reflecting December 2025 activity.
The latest figures indicate that total inflows reached MVR 218.7 million in December alone, bringing cumulative inflows for the year to over MVR 2.25 billion. In contrast, total outflows linked to project expenditure stood at MVR 275.2 million for the year, leaving the fund with a balance of MVR 3.59 billion by the end of December.
The gap between collections and spending is particularly visible at the monthly level. While December recorded inflows of MVR 218.7 million, expenditure on projects during the same period was limited to MVR 22.6 million. This pattern reflects a broader trend across the year, where only a fraction of collected funds has been deployed.
Green tax collections continue to be driven largely by the tourism sector. Resorts accounted for the majority of revenue, contributing over MVR 200 million in December, compared to relatively smaller contributions from hotels and guesthouses. This concentration highlights the sector’s central role in financing environmental initiatives, while also linking fund performance closely to tourism activity.
Geographically, Kaafu Atoll, which includes the Greater Malé region and a high concentration of resorts, generated the highest share of green tax revenue at MVR 74.8 million in December. Other major contributors included Raa, Baa, and Alifu Dhaalu atolls, reflecting established tourism zones.
On the expenditure side, funds have been directed towards a range of environmental and infrastructure projects, though at a comparatively modest scale. The largest allocations in December were linked to waste management initiatives, including the Greater Malé environmental improvement and waste management project, which accounted for MVR 12.6 million. Smaller allocations were spread across island-level waste management centres, water and sewerage systems, and coastal protection projects.
The structure of spending suggests a focus on decentralised environmental infrastructure, particularly waste management facilities across multiple islands. However, the relatively low level of disbursement compared to total collections indicates that project execution or fund utilisation may be proceeding at a slower pace than revenue accumulation.
The report also notes that expenditure figures reflect amounts recorded in the public accounting system and may be subject to reconciliation adjustments. Even with this caveat, the scale of the surplus suggests a structural imbalance between inflows and actual project deployment.
The growing balance raises broader policy considerations around the effectiveness of the Green Fund as a financing mechanism. While steady inflows demonstrate the reliability of green tax as a revenue stream, the accumulation of funds without proportional spending may point to bottlenecks in project planning, procurement, or implementation capacity.
At the same time, the continued expansion of the fund provides fiscal space for future large-scale environmental investments, particularly in areas such as coastal protection, renewable energy, and waste management, which remain critical for a small island state facing climate vulnerabilities.
