Australia to re-join UN's green climate fund after Morrison government withdrawal
Australia will once again tip money into the United Nations-led Green Climate Fund, reversing the former Morrison government's decision to pull out of it in 2018.
Key points:
Australia will rejoin the United Nation's climate fund for green projects in developing nations
Former prime minister Scott Morrison withdrew Australia over governance concerns with the fund
The foreign minister says despite previous concerns, Pacific nations want Australia in the fund
Foreign Minister Penny Wong confirmed Australia will make a "modest" contribution to the fund this year.
The climate fund takes donations from developed countries and uses the money to finance climate mitigation and adaptation projects in developing countries.
It has raised more than $20 billion in two funding rounds since it was launched in 2015, and while Australia contributed to the first round, it and the United States were notable absences in the second.
Funding includes both grants and concessional loans, and is distributed by a board made up of both developed and developing countries.
Projects funded in recent years include a $10m solar project in Fiji and a $47m project to help Tonga shift away from a reliance on diesel-generated power.
But it has been criticised in the past for a perceived lack of clear direction and strategy, as well as the politicisation of decisions by board members.
Some Pacific officials have also complained it can be difficult to secure access to funding from the scheme.
However it remains the fifth-largest source of climate finance in the region – and a recent report from the Lowy Institute found that for every dollar Australia contributed to the fund it unlocked up to $1.60 in additional global climate finance.
The Morrison government cited governance issues with the fund when making its decision to withdraw, arguing it would simply work directly with developing countries to help them develop climate resilience.
A spokesperson for Ms Wong said Australia intends to work within the fund to drive change.
"Australia will be re-joining the Green Climate Fund, with a modest contribution to be announced before the end of the year," the spokesperson said.
"We have taken on board feedback from our partners in the Pacific on the best ways to direct our climate finance efforts and ensure all elements deliver for Pacific priorities.
"We recognise that the GCF is the most prominent global climate finance fund, and we will work with partners to improve the GCF's effectiveness."
But they said they will also continue working directly with nations on various projects too.
"At the same time, Australia is supporting the Pacific's transition to renewable energy and is helping countries build climate resilience," they said.
"We will continue to boost financing to the Pacific directly, building on our increased development assistance for the region."
Experts welcome Australian presence 'back in the room'
Some foreign policy experts have been calling on Australia to re-engage with the Green Climate Fund, arguing it's still a critical mechanism to help developing nations fight climate change.
https://www.abc.net.au/news/2023-10-05/australia-rejoins-united-nations-climate-fund/102938288