Taiwan is deepening ties with one of its few remaining diplomatic allies through green energy aid, a positive sign for both sides as Taipei works to hold onto formal partners in the Pacific.

• Taiwan's foreign minister Lin Chia-lung visited Palau and appeared with President Surangel Whipps Jr. at a handover of donated electric buses.
• The two also launched a hydrogen energy initiative and opened solar panels installed on a shared government office building.
• The aid is part of Taiwan's push to keep Pacific allies close as China pressures them to switch recognition to Beijing.
• Clean energy projects are an easy sell in small island states that pay high prices for imported fuel.

Outlook: Expect more Taiwanese energy and infrastructure deals in the Pacific as the competition with China for diplomatic recognition continues.