Prime minister had previously disparaged the international fund designed to help poor countries adapt to climate change, and said Australia would not contribute

This article is more than 5 years old

This article is more than 5 years old

The federal government has pledged $200m over four years from its existing aid budget to the international Green Climate Fund, which Tony Abbott previously disparaged as a “Bob Brown bank on an international scale”.



The announcement represents another reversal by the government. At the time of the G20 meeting last month the prime minister resisted mounting global pressure to commit to the fund, designed to help poor countries adapt to climate change.

He argued Australia was already spending $2.5bn on its domestic Direct Action fund and providing $10bn in capital to a so-called “green bank” – which he is trying to abolish.

The change of position was announced on Tuesday, as foreign minister Julie Bishop prepared to address the United Nations conference on climate change in Lima – a meeting the prime minister’s office initially refused to allow her to attend.

Abbott and Bishop made the announcement in a joint statement.

“The pledge to the Green Climate Fund will facilitate private sector-led economic growth in the Indo-Pacific region with a particular focus on investment in infrastructure, energy, forestry ... and emissions reduction programmes.”

The pledge brought an immediate burst of applause at the UN conference.

“We have a strong track record in delivering climate finance,” Julie Bishop told the room.

Speaking to reporters in Melbourne, Abbott admitted he had “made various comments some time ago” about the fund but said “as we’ve seen things develop over the last few months” it was now appropriate for Australia to make “a modest, prudent and proportional commitment” in the interests of being a “good international citizen”.

“That money will be strictly invested in practical projects in our region,” he said.

Asked about the fund before last year’s UN climate meeting in Warsaw, the prime minister said: “We’re not going to be making any contributions to that.”

It was reported that at one of its first cabinet meetings the Abbott government decided it would make no contributions to the fund.

At the time the prime minister compared it to a domestic fund championed by the former Greens leader Bob Brown, the Clean Energy Finance Corporation, which Abbott wants to abolish.

He told the Australian: “One thing the current government will never do is say one thing at home and a different thing abroad. We are committed to dismantling the Bob Brown bank at home so it would be impossible for us to support a Bob Brown bank on an international scale.”

The government also pointedly dissented from support for the fund in a communique from last November’s Commonwealth Heads of Government meeting – a stance backed by Canada. Canada also recently announced it would now be contribute to the fund.

The announcement also revealed that the prime minister’s department would take over the development of any post-2020 emissions reduction targets that Australia might make before next year’s United Nations climate talks in Paris.

It said the review would take into consideration action by the world’s developed economies and Australia’s major trading partners.

“Any new post-2020 target would be announced in mid-2015 after the taskforce has completed its work,” it said.

Campaign groups broadly welcomed the shift in position - but still said that Australia could afford to do more.

“This can only be called a first step and falls short of its fair share,” said Kelly Dent, a campaigner for Oxfam Australia. Still, she said: “Australia’s pledge, just days after reports that they would not contribute to the fund, is an important message of support and a recognition of the country’s responsibility to act.”

The Climate Institute think tank welcomed the Australian contribution as “the first step towards fair and proper financial support for poor and vulnerable countries responding to the climate challenge”.

It said the amount fell short of the $350m a year the institute believed was a fair contribution from Australia.

“However, the government has an opportunity to demonstrate its total climate finance contribution when it submits its plan to scale up climate finance to the international community early next year.



“As part of this process, the government should outline how this contribution is in addition to the existing activities it is taking through the aid program and other bilateral activities.”

The Australian Conservation Foundation said the contribution was welcome, but the money should be in addition to the existing aid budget.

The G20 communique urged countries to make contributions to the fund – although the language was initially resisted by Australia.