The Micronesia Challenge is a commitment by the Federated States of Micronesia, the Republic of the Marshall Islands, the Republic of Palau, Guam, and the Commonwealth of the Northern Marianas Islands to preserve the natural resources that are crucial to the survival of Pacific traditions, cultures and livelihoods. Thomas Remengesau Jr, President of the Republic of Palau, talking about the Micronesia Challenge, declared that “Environment is our Economy”.
Palau has one of the largest portions of species that occurs nowhere else in the world and its ecosystems provide many important services that positively support environmental dynamics and contribute to livelihoods.
The Micronesia Challenge in Palau has a proper financing mechanism, a fee system, based on the payment of ecosystem services and the generous assistance of foreign governments and NOGs, especially the Nature Conservancy.