Joint media release: Australia commits to support climate action for APAC neighbours

The Hon Dr Jim Chalmers MP, Treasurer

The Hon Chris Bowen MP, Minister for Climate Change and Energy

The Hon Josh Wilson MP, Assistant Minister for Climate Change and Energy

The Australian Government is supporting action on climate change in our region through guaranteeing up to US$200 million (approximately A$300 million) worth of Asian Development Bank (ADB) climate change lending for our neighbours in the Pacific and South-East Asia.

It is expected to enable the ADB to make over US$900 million in additional loans, to help accelerate climate change mitigation and adaptation projects.

Australia joins an initial group of countries including the United States, United Kingdom and Japan in supporting this innovative approach to leveraging climate finance for our region.

The finance facility, known as the Innovative Finance Facility for Climate in Asia and Pacific, will ultimately support the ADB to deliver up to US$11 billion in climate-related loans, and boost private sector capital mobilization.

This program is an effective and efficient way to support Pacific and countries in Australia’s near region, such as Indonesia.

This guarantee commitment comes with no upfront underlying cash impact on the budget.

Quotes attributable to Treasurer, The Hon Dr Jim Chalmers:

“By supporting our partners in the Pacific, we’re making our region more stable and prosperous into the future as we take action on climate change.

"This is an innovative way for Australia to help our Pacific and other regional partners to deliver more climate projects at a lower cost.”

Quotes attributable to Minister for Climate Change and Energy Chris Bowen MP:

“Australia and our neighbours have the most to gain from strong action on climate change, and the most to lose from denial and delay.

“This contribution will unlock private finance to accelerate investment across our region, opening up new trade and export opportunities for Australian businesses, while helping our partners adapt to worsening weather events.”

Quotes attributable to Assistant Minister for Climate Change and Energy Josh Wilson MP:

“Climate change presents the single greatest threat to the livelihoods and wellbeing of people everywhere. Our region faces acute challenges, especially the low-lying Pacific atoll states and Asia’s great delta and coastal cities.

“There is a strong imperative for Australia to help bridge the climate financing gap through collective initiatives like the IF-CAP so we can protect lives and livelihoods, adapt to worsening threats like sea-level rise, and build regional security.”