Australia is committed to doing its part to meet the UNFCCC goal to collectively mobilise at least $US100 billion per year in climate finance for developing countries by 2020.
In 2016 Australia co-led, with the UK, the development of a ‘Roadmap to $US100 billion’ of climate finance. The Roadmap provided increased predictability and transparency about how the goal will be reached, and sets out the range of actions donor countries will take to meet it, showing that donor countries are well placed to meet the goal, through a combination of public and mobilised private finance.
In 2018, the OECD analysed public climate finance flows from 2013-17. It found that the majority of the US$100 billion goal will be met with public finance and that developed countries and multilateral development banks are making real progress on their 2015 pledges to scale up climate finance. Country donors and multilateral institutions have also been working closely with developing countries to increase the mobilisation of private finance beyond historic levels through a range of targeted initiatives. The OECD will release an updated estimate of mobilised private sector finance in 2019.
Australia pledged in 2015 to provide at least $1 billion in climate finance over five years, which we implement through our foreign aid program. A proportion of Australia’s core contributions to the Asian Development Bank, World Bank, Global Green Growth Institute and UN agencies are providing climate change assistance to developing countries (estimated $95 million in 2016/17).
Australia has contributed to a number of Paris Conference initiatives including $5 million over four years (2016-2020) to the Climate Risk and Early Warning System (CREWS) initiative, $1.5 million to the World Resources Institute’s Nationally Determined Contributions Partnership (NDC Partnership) and $2 million to the Capacity Building Initiative for Transparency (CBIT). We have been supporting the participation of women in climate-related decision-making processes through the training of women negotiators in the region. Australia’s climate finance commitment includes targeted climate-specific investments across the aid program and mainstreaming of climate action in key sectors (e.g. clean energy, infrastructure, agriculture, water, health, governance). Australia’s climate finance is entirely grant based, balanced between mitigation and adaptation, and is prioritised to countries most vulnerable to climate change, with over two thirds of bilateral, regional and global programs to benefit Small Island Developing States (SIDS) and Least Developed Countries (LDCs).
Australia is integrating climate change action and disaster risk reduction across our entire aid program to ensure our development and humanitarian assistance supports partners to reduce emissions and address the impacts of climate change. Integrating into our development assistance will protect investments, build long-term resilience to climate and disaster impacts, and help our development partners to manage climate risks and transition to a low emissions economy.
By integrating climate considerations into our investments, we ensure development impacts are lasting. We do this through climate risk screening, by considering climate impacts on new investments and by designing programs to ensure development outcomes are attained even under changing climatic conditions. We also implement mandatory safeguards to ensure that we protect the environment when delivering the aid program overseas. For more information on these safeguards, see Environmental protection.
Australia works closely with Pacific island countries and regional organisations to take climate action. We have sustained and increased funding to sectors affected by climate change. In 2016, Australia committed to provide $300 million over four years for climate change mitigation, adaptation and disaster resilience support to the Pacific. The Australia Pacific Climate Partnership ($75 million, 2018-19 to 2021-22) brings together a suite of long running programs that connect high quality climate data with decision making, and promotes climate and disaster resilient development across the region. A particular focus is connecting this data with Australia’s multi-sectoral sectoral aid programs in the Pacific.
Australia will also mainstream climate and disaster resilience into the Australian Infrastructure Financing Facility for the Pacific (AIFFP). The $2 billion Facility will significantly boost Australia’s support for infrastructure that will help to meet the challenges posed by climate change, including in the energy, transport and water sectors.
Australia is supporting the Pacific Nationally Determined Contributions (NDC) Hub, providing $500,000 towards its operation. The Hub is assisting Pacific Island countries to put in place the institutions and policies necessary to enhance and implement their NDCs and achieve low carbon development. The Hub is providing in-country advice and technical support and is promoting regional collaboration to address common issues across the Pacific with NDC implementation.
Australia has internationally recognised technical expertise in the design and implementation of measurement, reporting and verification (MRV) systems. Australia is helping countries including Indonesia, Thailand, China and Kenya build MRV systems. Australia’s work through the Global Forest Observations Initiative
supports developing countries in the Asia-Pacific, Africa and South America to build capabilities and systems for forest carbon accounting.