Anthony Albanese to rejoin climate fund to bolster Pacific reset

The Albanese government will go to next week’s COP27 climate talks prepared to reinvest in supporting developing nations’ climate costs as it seeks to reset relations with the Pacific.

Prime Minister Anthony Albanese. Picture: NewsWire/Sarah Marshall

The Albanese government will go to next week’s COP27 climate talks prepared to reinvest in supporting developing nations’ climate costs as it seeks to reset relations with the Pacific and bolster the nation’s green credentials on the world stage.

The Australian can reveal the government is actively considering rejoining the UN’s Green Climate Fund, or pouring money into a new climate insurance trust, after US President Joe Biden called for wealthier nations to renew their commitment to helping poor nations cope with the effects of climate change.

Australia is set to preference funds that help developing nations in the Pacific cut emissions and adapt to the effects of climate change in a bid to deepen ties with Australia’s regional partners.

Scott Morrison ended Australia’s contribution to the global climate fund in 2019 after the former prime minister declared he would not “tip money into that big climate fund”.

Australia contributed $200m between 2015 and 2018, with funding going towards emissions reductions activities and climate adaptation responses such as improving agriculture, protecting coastlines and building capacity within developing countries.

The Albanese government has stepped up its global climate change commitments in recent weeks amid growing pressure from the Biden administration and South Pacific nations for Australia to embrace stronger climate change action.

Australia last month officially signed up to Mr Biden’s global pledge to reduce methane emissions by 30 per cent over the decade, which was rejected by the Morrison government at last year’s summit in Glasgow.

The Albanese government is also expected to join a global push to end deforestation by 2030. The pledge was rejected by the Morrison government at COP26 in Glasgow.

Labor’s recent budget also pledged to increase official development assistance to the Pacific by $375m, on top of an already promised $525m, lifting the government’s aid boost to the region to $900m.

Leading climate expert Professor Mark Howden said Australia would face “continued pressure for climate finance” given the commitment made at the Copenhagen summit in 2009 for developed nations to provide $US100bn a year to developing nations.

Professor Howden, the director of the Australian National University’s institute for climate, energy and disaster solutions said there would be a push for Australia to “show its money”.

However, Professor Howden said one of the key sticking points was certain to be the dispute between a “bloc of developing countries and developed countries” and expected Australia to come under pressure from the Pacific Islands to explain its position effectively.

Professor Mark Howden is director of the Climate Change Institute at the Australian National University.

A spokeswoman for the Department of Foreign Affairs and Trade said Australia remained engaged in discussions with the GCF and was considering all climate financing options.

“Australia is considering all aspects of its climate finance, with the aim of ensuring that it meets the needs of our region, including of our Pacific family,” the spokeswoman said. “This includes consideration of the Green Climate Fund as one option. Australia will remain engaged in discussions on the GCF and its value globally and to our region.”

Mr Albanese is facing pressure to attend the upcoming summit in Egypt, with a number of teal MPs urging him to “step on to the global stage” and demonstrate Australia’s commitment to global emissions reduction.