1 week Ago By Marion Rae
A new climate program will combine private capital and Australian aid to spur climate action in some of the world's most vulnerable regions. Login or signup to continue reading Foreign Minister Penny Wong said the package announced at the COP29 climate conference on Friday would boost the efforts of businesses across the Pacific, Southeast Asia and South Asia. The $126 million top-up to existing aid will offer cheap finance for climate projects, and comes as Australia gets set to co-chair negotiations where other rich nations are being asked to put more money on the table.
"The Climate Catalyst Window will unlock the potential of climate-focused businesses to help drive the climate action our region has been asking for," Senator Wong said. "We're also ensuring we are getting maximum value for Australia's development assistance in projects that matter to Australians and our region," she said. Offering loans, equity and guarantees, it aims to attract private investment into projects important to the region.
Funds recovered will be reinvested, ensuring the fund grows over time and supports a pipeline of projects, according to a statement. The targeted investment to support climate-focused small and medium enterprises in the Indo-Pacific would contribute to global net-zero goals, Minister for International Development and the Pacific Pat Conroy said. Along with financial support, the initiative will provide technical assistance for impact assessments and promote gender equality.
The federal government also guarantees up to $US200 million ($A310 million) of Asian Development Bank climate change lending for neighbours in the Pacific and Southeast Asia, with no up-front cash impact on the budget. Known as the Innovative Finance Facility and revealed on Wednesday, it will support the bank to roll out up to $US11 billion ($A17 billion) in climate-related loans and potentially unlock private capital. But the announcements come as developing economies, including Australia's cash-strapped Pacific neighbours, call for an end to climate support being tied to taking on more debt.
Developing countries will require $US1.3 trillion ($A2 trillion) annually by the 2030s to meet climate needs, according to a report released at the summit by climate finance experts. Nations are yet to thrash out a new collective climate finance goal, with Climate Change Minister Chris Bowen set to co-chair the negotiations in the final week of the two-week event.
"Australia and our neighbours have the most to gain from strong action on climate change, and the most to lose from denial and delay," Mr Bowen said before travelling to Baku in Azerbaijan. Jubilee Australia climate campaigner James Sherley said Prime Minister Anthony Albanese vowed to get Australia "out of the naughty corner" on climate negotiations when he took over from the coalition, but seems much less eager to deliver on these promises. "This is particularly concerning given it's Chris Bowen's job to chart a course for better outcomes at this COP," he said.
Clarity on finance could mean developing countries lodge ambitious national climate plans in 2025, or dial back. Details of Australia's national contribution are also due, with Mr Albanese thus far not promising to release them before a federal election. While both major parties support net zero by 2050, the opposition - leading in opinion polls for an election that must be held in the next six months - intends to dump Labor's 2030 climate commitments.
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