The Australian Government has announced a commitment to combat climate change in the APAC region, pledging to guarantee up to $300 million in Asian Development Bank (ADB) climate lending initiatives.
The guarantee, which requires no upfront cash impact on the budget, is expected to catalyse over US$900 million in additional loans for climate change mitigation and adaptation projects throughout the Pacific and South-East Asian regions.
Federal Treasurer Dr Jim Chalmers said by supporting partners in the Pacific, Australia is making the 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,” he said.
Australia joins other major powers including the United States, United Kingdom, and Japan in supporting this innovative financing approach. The initiative, formally known as the Innovative Finance Facility for Climate in Asia and Pacific (IF-CAP), aims to ultimately facilitate up to US$11 billion in climate-related loans and strengthen private sector capital mobilisation.
Minister for Climate Change and Energy Chris Bowen MP said Australia and 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,” he said.
The Federal Government has promised this commitment comes with no upfront underlying cash impact on the budget.
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