Australia is partnering with Palau to reduce its dependence on imported fossil fuels in support of low-emissions, climate resilient development.

Through the Australian Infrastructure Financing Facility for the Pacific (AIFFP), Australia provided financing to Solar Pacific Pristine Power to help construct Palau's first major solar and battery energy storage facility. When operational, it will generate over 20 per cent of the country's energy needs.

The project is an example of the AIFFP's market-leading approach to infrastructure financing, innovation, and quality. It exceeds global standards on social and environmental safeguards, including by ensuring supply chains are not exposed to modern slavery.

This project also demonstrates how Australian financing can leverage private sector investment to deliver critical infrastructure projects without imposing unsustainable debt burdens.