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Thursday, October 5, 2023

Australia rejoining Green Climate Fund after 4 year absence

Green Climate Fund at COP22

This morning the Foreign Affairs Minister Senator Penny Wong announced that Australia would be rejoining the Green Climate Fund and make a modest contribution.

The Green Climate Fund is the main vehicle for global climate finance and a key part of the Paris Agreement.

Australia is the only developed country not part of and contributing to this multilateral climate finance fund.

The Fund is presently going through a second round replenishment process with a high level pledging conference taking place in Bonn on 5 October.


According to the Green Climate Fund pledges already made include:

Six countries recently announced their contributions to the Fund at the UN Climate Ambition Summit in New York. Pledges were received from France (EUR1.61 billion); Iceland (USD 3.2 million); Luxembourg (EUR 50 million); Slovakia (EUR 2.2 million); Slovenia (EUR 1.5 million); Spain (EUR 225 million).

These pledges follow earlier commitments made by Austria (EUR 160 million), Canada (CAD 450 million), Czechia (USD 4 million), Denmark (USD 232 million), Germany (EUR 2 billion), Monaco (EUR 3.3 million), the Republic of Korea (USD 300 million) and the United Kingdom (USD 2 billion).

Australia to rejoin GCF, commits to a 'modest' contribution

With the election of the Albanese Labor Government in May 2022 there have been many calls for the government to rejoin the Green Climate Fund to get Australian climate diplomacy back on track. 

The early visits by Foreign Minister Wong to Pacific Island Nations and an election promise to host a future UN climate talks with support of Pacific Natons were a positive start to turning around Australian Foreign affairs and climate diplomacy. Rejoining the Green Climate Fund is clearly another important step and statement to the world of Australia's multilateral commitment to climate finance.

Australian joined the Fund after its establishment at COP21 in 2015 with a $200 million commitment. In the initial years Australia co-chaired the board and was important in setting up good governance processes on accountability and transparency. 

In 2018 Prime Minister Morrison unilaterally decided to withdraw Australia from the Green Climate Fund while being interviewed on radio by conservative Radio announcer Alan Jones. Australia made its final contribution to the fund in 2019.

Australia is seeking to host the UN Climate Talks, COP31, in 2026, and is seeking the support of Pacific Nations in doing this. 

Foreign Minister, Senator Penny Wong outlined the change in comments to the Sydney Morning Herald.

“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,” Wong said.

“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.

“At the same time, Australia is supporting the Pacific’s transition to renewable energy and is helping countries build climate resilience.”

Now wer need to wait to see how much is Australia's 'modest' funding commitment will be. 

Rejoining GCF is Strategic and a commitment to multilateralism

A report by the Lowy Institute published 6 September 2023 reviewed the operation of the Green Climate Fund and recommended that Australia should rejoin to meet its strategic climate objectives. The key  report key findings were:

  • The Green Climate Fund (GCF) is a lynchpin for global climate solidarity and plays an important role in supporting climate action in developing countries. The Fund should, however, increase its focus on serving the most climate vulnerable countries, including in the Pacific Islands region, particularly through grant-based adaptation financing.
  • Reforms are required to ensure that GCF support is targeted to where it is needed most and to boost countries’ direct access to funding. This includes adoption of country allocations following a prescribed formula to guarantee that support is well targeted and depoliticised.
  • Major donors should continue to invest resources and diplomatic effort in the GCF through its upcoming replenishment, while scaling up their financial support over time in line with these reforms.
  • Australia should rejoin the Fund to further its own strategic climate objectives. Canberra has a crucial role to play in making the GCF work for Pacific Island countries and in unlocking greater global climate funding for the region.

Background:

John Englart, Climate Citizen, NOVEMBER 8, 2022, Australia a laggard on climate finance. Will it promise more at COP27, support a Loss and damage facility? https://takvera.blogspot.com/2022/11/australia-laggard-on-climate-finance.html

John Englart, Climate Citizen, SEPTEMBER 13, 2021, Australian climate finance falling far short of our fair share, getting worse https://takvera.blogspot.com/2021/09/australian-climate-finance-falling-far.html

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