In the Indo-Pacific climate change is disrupting trade, causing water and energy shortages, increasing risks of pandemics, conflict and displacement, and reversing progress in the fight against poverty. The Australian Government is committed to taking real and significant climate action domestically and demonstrating leadership internationally. We are responding to global calls and evidence of accelerating climate change by increasing the quality and scale of our climate investments, better addressing climate risks across our development cooperation programs and supporting the private sector to also respond. 

Australia's International Development Policy acknowledges climate change as the greatest shared threat to all countries and has climate action at its heart. It commits Australia to strengthening climate resilience across the development program by:

• ensuring that from 2024-25, at least half of all new country and regional investments valued over $3 million will have a climate change objective – with the goal of reaching 80 per cent in 2028–29 (see DFAT's Good Practice Note on Integrating Climate Change into Development Assistance for Implementing Partners).
• considering climate risk in our development partnership plans, and
• aligning our bilateral programs with partners' Nationally Determined Contributions and National Adaptation Plans.

Support to our region includes:

Putting more resources behind our climate work

The Australian Government is committed to taking real and significant climate action at home and establishing Australia as a climate leader internationally.

• Australia has strengthened its climate finance commitment and expects to deliver $3 billion towards global efforts, over 2020-25. This includes $1.3 billion in climate finance for the Pacific, most of which will support adaptation (see further information on counting Australia’s climate finance and delivering on our climate finance commitment).
• Australia has committed to increasing Official Development Assistance to the Indo-Pacific by $1.7 billion over five years.
• Australia will also step up its work with the private sector and explore new forms of development finance to achieve climate impact at scale in the Indo-Pacific region.

Examples of Australia’s climate change initiatives

Australian Infrastructure Financing Facility for the Pacific (AIFFP)
AIFFP is partnering with governments and the private sector in the Pacific and Timor-Leste to provide grant and loan financing for high quality, transformational energy, water, transport, telecommunications and other infrastructure.

Climate and Oceans Support Program in the Pacific (COSPPac)
COSPPac enhancing the capacity of Pacific islands to manage and mitigate the impacts of climate variability and tidal events. The team is working with stakeholders to forecast and report on climate, tides and the ocean.

Australian Climate Finance Partnership (ACFP)
ACFP is a concessional finance facility supporting climate action in Southeast Asia and the Pacific. It is managed by the Asian Development Bank and funded by the Australian Government. ACFP investments fill critical financing gaps in private climate finance in developing countries by de-risking projects for private investors through concessional finance. The Asian Development Bank manages ACFP, leveraging its ability to use advanced private sector capabilities to engage in a wide range of projects.

Climate Resilient by Nature
Australia’s Climate Resilient by Nature program works with local communities to conserve and rehabilitate ecosystems to address climate change in the Pacific.

Climate Resilient Communities (CRC)
CRC is a $208.5 million facility designed to help meet the Australian Government’s climate change commitments under the International Development Policy. CRC drives increased climate investments and effective mainstreaming via technical assistance; co-funding for climate change programs (particularly in the water, agriculture, food, nature-based solutions and energy sectors); dissemination of knowledge and learning to inform programming and build capacity; and climate diplomacy support.

Pacific Climate Infrastructure Financing Partnership
A $350 million partnership to deliver climate resilient infrastructure across the Pacific through:

• major climate-specific infrastructure projects such as large-scale hydropower and flood alleviation works
• climate improvements to the AIFFP portfolio, such as coastal protection for roads or solar energy for cable landing stations
• a suite of off-grid renewable energy projects in remote and rural communities in the Pacific and Timor-Leste.

Weather Ready Pacific
Weather Ready Pacific seeks to reduce the human and economic costs of severe weather, water and ocean events across Pacific island communities. It aims for all Pacific island countries to have access to localised, accurate and timely forecast and warning products to help communities plan for and respond to weather conditions, including disasters. Forecast and warning products will incorporate Traditional Knowledges from Pacific communities to ensure the information is localised and relevant.

Australia-Indonesia Climate and Infrastructure Partnership
Also known as KINETIK, this partnership will build a long-term platform for cooperation on energy transition. It will use innovative finance mechanisms to increase investment in climate-positive businesses and build the pipeline of climate resilient infrastructure projects

Australian Development Investments
Australian Development Investments (ADI) is Australia’s $250 million international impact investment fund. ADI greatly expands the Australian Government’s capacity to mobilise private sector investment into small and medium enterprises (SMEs) in the Indo-Pacific, to drive positive climate and gender outcomes. ADI uses loans, equity and guarantees to attract private investment into projects that matter to our region. Funds recovered will be reinvested, ensuring the fund grows over time, and supports a pipeline of climate projects into the future.