The Government of Tuvalu is leading a national transition away from conventional plastic diapers. Families switch to an affordable compostable diaper, and a local team delivers to households, collects used diapers and composts them on-island. Tuvalu has 26 square kilometres of land, so every tonne kept out of landfill counts. Pacific Island countries use an estimated 815 million disposable diapers a year, around 173,000 tonnes, which go to landfill, are burnt or are discarded in the environment. Diapers are not recycled at commercial scale anywhere in the world. The model has operated in Samoa since 2024 and began national rollout in Tuvalu in June 2026, with a Vanuatu pilot to follow in 2027. Over seven years, the programme targets 9,380 tonnes of used diaper waste diverted across the three countries. It creates paid local work for women and returns compost to thin island soils.
Project overview
Investment opportunity
Companies, philanthropies and governments are invited to pre-commit to purchasing Alternative Material Certificates (AMCs), developed by PCX Solutions with support from UNDP. Each AMC represents plastic prevented at source and verified by an independent third party. Pre-commitments anchor a seven-year outcome bond that finances delivery upfront. Bond investors carry the delivery risk, while purchasers pay only once verified certificates are issued, which is expected to occur 12 to 18 months after delivery begins. The Government of Tuvalu takes on no debt and provides no guarantee. At approximately $3,730 per tonne diverted, prevention costs around 58% less than the $8,900 per tonne reported for removing marine litter from Aldabra, Seychelles, and around 96% less than the approximately $95,000 per tonne implied by The Ocean Cleanup's estimate for the Great Pacific Garbage Patch. The structure builds on the World Bank's 2024 US$100 million Plastic Waste Reduction-Linked Bond, led by Citibank.
Investment types sought
Outcome-Based Funding (AMC Pre-Commitments); Strategic Partners Supporting Paper-Based Packaging Innovation, Women-Led Distribution Networks, Outer-Island Connectivity, Data Collection And Independent Verification
Project status
Development stage
Implementation / scaling / financial close
Current status / progress to date
Completed: Samoa operations since 2024; Vanuatu and Fiji scoping; AMC standard and methodology. Ongoing: Tuvalu national rollout since June 2026; preparation for independent validation; bond structuring; securing AMC pre-commitments. Pending: Vanuatu pilot with AFD in 2027; COP31 presentation at the Moana Blue Pacific Pavilion in November 2026.
Additional project information
- Lead agency
- Government of Tuvalu, Ministry of Climate Change, working with the Ministry of Finance. Delivery partner: The Greater Good Diaper Project.
Expected impact
Jobs created / supported
Around 150 part-time roles are expected at full operation, with approximately 30 in Tuvalu and 60 each in Samoa and Vanuatu, in household delivery, collection and composting. Roles are filled locally by women and supported by training and safe-handling procedures. Estimates will be refined through country operating plans.
Economic & development benefits
- Families Switch At Price Parity With Plastic Diapers, Removing Cost As A Barrier To Change
- Creates Around 150 Part-Time Roles For Women Across The Three Countries At Full Operation, Including Approximately 30 In Tuvalu And 60 Each In Samoa And Vanuatu
- Provides Paid Local Work In Delivery, Collection And Composting, Supported By Training And Safe-Handling Procedures
- Produces Compost For Community Gardens And Local Food Production, Including Through Taiwan's Fia Fia Garden Partnership In Funafuti
- Demonstrates A Financing Model That Pacific Governments Can Adopt Without Taking On Debt And That Can Be Replicated Across Commonwealth Small Island States
Climate & resilience benefits
- Prevents Fossil-Based Plastic At Source By Diverting 268 Tonnes Of Used Diaper Waste Per Year In Tuvalu And 1,340 Tonnes Per Year Across The Three Countries, Reaching 9,380 Tonnes Over Seven Years
- Extends The Life Of Landfills On Low-Lying Atolls Where Land For Waste Disposal Is Scarce
- Reduces Methane And Carbon Dioxide Emissions From Diapers That Would Otherwise Be Sent To Landfill Or Burnt
- Returns Organic Carbon And Nutrients To Thin Atoll Soils Through Composting
- Advances The Commonwealth Blue Charter And The Commonwealth Clean Ocean Alliance Commitment To Eliminate Avoidable Single-Use Plastic Waste
Contact
Contact team
For more information about this project, please contact the Commonwealth Investment Platform team.