The Australian Government has guaranteed $125 million to the Asian Development Bank (ADB) to support climate action in Asia and the Pacific.
The commitment was announced at COP29 in Baku, Azerbaijan, by the Assistant Minister for Climate Change and Energy Josh Wilson.
Related article: The COP29 climate talks are about to kick off in Azerbaijan. Here’s what to expect
With South-East Asian and Pacific countries among the most vulnerable to climate change, Australia is joining an initial group of partners including the United States, United Kingdom and Japan, to provide funding support.
The support is provided to a new financing facility, the Innovative Finance Facility for Climate in Asia and Pacific (IF-CAP). Collective contributions will support the ADB to deliver up to US$11 billion in climate-related loans, and boost private sector capital mobilisation.
Australia’s guarantee is expected to enable the ADB to make over US$900 million in additional loans to assist Pacific and Asian countries. The loans will fund climate change mitigation and adaption projects.
Australian Minister for Climate Change and Energy Chris Bowen said, “Climate change is no longer an abstract concern, it’s a reality and an existential threat for Pacific nations.
Related article: Global CO₂ emissions from fossil fuels reach record high
“Australia is working with our Pacific neighbours to strengthen their energy security and accelerate the renewable energy transformation across our region.
“Each step we take to fight climate change is a step back from the brink, and Australia is dedicated to working with our Pacific neighbours to make sure our next steps are the right ones.”
