Today, the Australian Council for International Development (ACFID), the peak body for Australian international development agencies welcomes the Australian Government’s contribution of $50 million to the global Loss and Damage Fund.  

This investment builds on an initial $100 million commitment to the Pacific Resilience Facility and a $50 million contribution to the Green Climate Fund announced at COP28.  

“ACFID welcomes the announcement from Minister Bowen of $50 million for the Loss and Damage Fund,” said Dr Alex Edney-Browne, ACFID’s Policy & Government Relations Lead.  

“The sector has been asking for the Australian Government to contribute $100m to the fund, so this is a positive start, Australia must advocate now, at COP29, for the inclusion of loss and damage in the New Collective Quantified Goal on Climate Finance (NCQG) to ensure addressing loss and damage is a global priority.  

This announcement comes at a critical time for the Pacific whose fragile development gains are increasingly undermined by massive economic damage caused by more frequent and severe weather events. Pacific Island nations and civil society have long called for the establishment of a Loss and Damage fund and this commitment from Australia demonstrates a willingness to listen and engage with Pacific voices. 

“ACFID continues to reiterate the importance of the Australian Government delivering grant-based climate finance to reach the most vulnerable communities” 

“ACFID urges Australia to meet its fair share of global climate finance and calls upon Minister Bowen to use his political power to achieve a fair, ambitious and equitable NCQG in his capacity as Ministerial Pair,” said Dr Edney-Browne.  

For more information or to arrange an interview, please contact ACFID Media at 0401 721 064 or at [email protected]    

Background   

The New Collective Quantified Goal (NCQG) is a key element of the Paris Agreement, aimed at establishing a new financial target to support developing countries in their climate actions post-2025. The NCQG seeks to address persistent gaps in climate finance, building on the previous USD 100 billion target set by the United Nations Framework Convention on Climate Change in 2009.  

In 2022-23, Australia’s climate finance contributions amounted to around 15% of its fair share of the global annual goal of USD 100 billion. Australian civil society continues to urge the government to take proactive steps to reach its fair share, which currently stands at AUD 4.4 billion per year in new and additional funding beyond existing Official Development Assistance (ODA).  

The Fund for Loss and Damage was agreed at COP28. Since COP28 twenty-three countries and regions have made pledges to the Fund for Loss and Damage.  

At COP28 Australia did not pledge to the Loss and Damage Fund, but did make a pledge to the Pacific Resilience Facility (PRF).  

The Intergovernmental Panel on Climate Change (IPCC) has warned that even with effective measures to limit warming to 1.5°C, losses and damages from climate change are already occurring and are projected to worsen. Developed economies must therefore increase their provision of loss and damage finance.