Australia pledges $50m to global climate change compensation fund

Australia is making a major commitment to help poorer countries weather the effects of climate change.

Australia is committing $50m to a global compensation fund for poorer countries weathering the effects of climate change.

The Fund for Responding to Loss and Damage aims to help developing countries recover from natural disasters.

Climate Change and Energy Minister Chris Bowen made the pledge while delivering Australia’s national statement to the COP29 summit in Azerbaijan’s capital Baku.

Climate Change and Energy Minister Chris Bowen has committed Australia to paying $50m to a global fund to compensate poorer countries weathering the effects of climate change. (Photo by Sean Gallup/Getty Images)

“Today, I announced that we’d be making further contributions to respond to loss and damage,” Mr Bowen said.

“Australia will become the sixth largest contributor to the Fund for Responding to Loss and Damage with a $50m contribution.

“This builds on our foundational $100m contribution to the Pacific Resilience Facility, a Pacific-owned facility that will support locally-led, small-scale projects across the Blue Pacific Continent that respond to loss and damage.”

New 🇦🇺 and 🇬🇧 agreement on renewables signed at COP, working to grow cheaper cleaner energy and jobs in both countries 💪 pic.twitter.com/9oJRmWkpDh

— Chris Bowen (@Bowenchris) November 19, 2024

Hotter summers, extreme weather events and rising sea levels are being felt everywhere.

But developing countries are far more vulnerable to natural disasters caused by a changing climate, a problem they have only fractionally contributed when compared to their industrialised counterparts.

The fund, administered by the World Bank, is set to begin financing projects in 2025.

Mr Bowen also praised the COP, which brings countries together to co-ordinate global action on climate change, and reiterated Australia’s “bid to host COP31 in genuine partnership with the Pacific.”

“We are ready to step up and do our bit in helping shepherd this critical global forum,” he told the conference.

Australia is under pressure to take action on climate change from its smaller Pacific neighbours, many of whom are facing existential threats due to rising sea levels and ocean warming.