The European Union has pledged more support to help Palau improve social and economic development, increase resilience to climate change and reduce poverty.
EU's Ambassador to the Pacific, Andrew Jacobs has this week been in Palau where he had talks with the President of Palau, Tommy Remengesau and his Government.
A release out of the EU Pacific office says there were fruitful discussions on the EU-Palau cooperation, regional economic integration, sustainable management of natural resources and climate change.
Palau and the EU have a bilateral programme for funding of $US1.7 million between 2014 and 2020 under the 11th European Development Fund.
"The Republic of Palau is a valued EU partner and the EU is proud to be supporting some the key priorities identified by the Government of Palau," said Mr Jacobs.
"Sustainable energy remains the priority sector under 11th EDF," he said.
He added that the EU would also support civil society to enhance participation in policy dialogue, in monitoring of national programmes, economic reforms and public finance management.
There would be a particular emphasis on climate change and environmental conservation.