COP28: Australia commits A$100 mil climate finance for Pacific, joins Green Climate Fund

Australia has committed A$100 million (about $66 million) to the Pacific Resilience Facility and A$50 million to the Green Climate Fund, its climate change and energy minister Chris Bowen said Dec. 8 at the UN Climate Change Conference in Dubai, in a bid to strengthen the country's pro-climate stance.

At the COP28, Australia rejoined the Green Climate Fund and said it would advocate for the fund to benefit Pacific needs, Bowen said, reversing the country's withdrawal from the GCF in 2018.

The government "is responding to Pacific needs by delivering new climate finance directly to the region to deal with the climate crisis and protect people, housing and infrastructure," Bowen said.

"I look forward to continuing to work closely with my Pacific colleagues to call for stronger global action to reduce emissions and ensure decisions on climate finance deliver practical outcomes and maximum impact for the Pacific, and other countries."

The GCF, the world's largest global climate fund of $13.5 billion, was set up in 2015 as part of the landmark Paris Agreement on climate change and has approved projects across 129 countries, its website shows.

Meanwhile, the PRF is the first Pacific-led, owned and managed community resilience financing facility to support locally led, small-scale projects across the Pacific region.

The PRF includes grants for climate adaptation, disaster preparedness, nature-based solutions and projects responding to loss and damage.

The PRF builds on Australia's contributions to climate and energy infrastructure for the region, including A$75 million for a program for off-grid and community-scale renewable energy in remote and rural parts of the Pacific, Bowen said.

Agreements

Australia would advocate more funding for Pacific Island nations that are at the forefront of climate change, according to Bowen.

"Australia welcomes the decision taken at COP28 to operationalize the Climate Impact Response Fund for supporting particularly vulnerable developing countries respond to climate impacts, including loss and damage," Bowen said.

"We look forward to the new fund being set up quickly and delivering for the Pacific."

Australia joined 39 countries and institutions, including the US, the UK, Canada and Fiji, to sign up for the Statement on International Public Support for the Clean Energy Transition Partnership (CETP) at COP28 on Dec. 5.

The CETP is an initiative co-funded by the EU that brings together public and private stakeholders for research and innovation from European and non-European countries and regions.

Australia also supported the UAE's signature initiative to triple global renewable energy generation capacity and double global average annual energy efficiency improvements by 2030 on Dec. 3 at COP28.

Platts, part of S&P Global Commodity Insights, assessed the Generic ACCU price at A$31.90/mtCO2e ($21.10/mtCO2e) Dec. 7.