Policy Updates

On June 17, 2024, the second edition of the Australian Lowy Institute's 'aid map' documents showed overall ODA flows to Southeast Asia from all sources declined to US$26 billion in 2022, following a reduction in COVID-19 related support.

Some traditional donors, including Australia, showed a small decline in ODA transfers. Substantial reductions appeared in flows from China and the ADB.

Southeast Asia also saw a significant decline in climate-oriented development finance. Lowy indicated that climate finance had declined by 15% over the previous year.

The map covered financial flows by 107 development partners to 120,000 projects.

On May 20, 2024, Australia's DFAT reported that Australia provided a total of AUD619 million (US$400 million) as climate finance in FY2022/23, with nearly half provided to the Pacific Islands region and bilateral programs, including Papua New Guinea, about a quarter provided to Southeast and East Asia, and most remaining funding provided through global program contributions and as core funding for multilateral organizations.

62% of the funding was provided for adaptation, with only 22% for mitigation.

In 2023, Australia contributed AUD100 million (US$65 million) to set up a Pacific Resilience Facility and a further $50 million (US$32 million) was committed to the GCF.

The Australian Institute of International Affairs suggested that Australia should now support efforts in the G20 to have the Pacific Islands Forum added to the G20 guest list of permanent invitees. This would add a strong voice on climate issues affecting the Pacific island states, and would also strengthen calls for easier access to green global funds for the most vulnerable countries.

On May 14, 2024, Australian Treasurer Jim Chalmers delivered the annual Australian budget, which showed the ODA budget rising slightly to AUD5 billion (US$3.2 billion) for FY2024/25.

0.19% ODA/GNI was expected in 2024. Notably, Australia included the grant element of concessional infrastructure loans in the overall ODA figures for the first time.

Within the ODA program, expenditure on the Pacific was expected to rise to almost 40% of the total ODA budget.

AUD144 million (US$93 million) was estimated to be spent on climate and the environment. A new Climate Resilient Communities Fund in the Pacific is slated to receive AUD100 million (US$65 million) over 3 years. Environment spending included AUD200 million (US$129 million) for a Pacific Resilience Facility over 4 years. An Indonesia Environment Partnership will receive AUD200 million (US$129 million) over 4 years.

The gender equality, inclusion, and disability sectors are estimated to receive AUD102 million (US$66 million), including for implementation of expected new strategies for gender equality, LGBTQI+ rights, and disabilities. This also included funds for an Indo-Pacific Gender Equality Fund and a Southeast Asia-based GBV prevention program.

On May 9, 2024, Australian Foreign Minister Penny Wong announced that Australia would provide AUD19 million (US$12 million) to extend the Tuvalu Coastal Adaptation Project, bringing the total Australian contribution to the project to AUD38 million (US$24 million).

The coastal adaptation project is one aspect of the Falapeli Union. Under this union, Tuvalu and Australia have agreed to an annual pathway for Tuvalu citizens to study, live, and work in Australia in response to climate change. Tuvalu faces climate challenges, with sea level rises likely to affect the whole nation. Increasing cyclonic events and rising sea levels threaten the nine inhabited islands of Tuvalu, which have an average elevation of only 1.83 meters.

In addition to the Australian funding, the project is receiving assistance through the GCF. It was the first project in the Pacific to be awarded assistance through the GCF.

Investments through the project will include improving the national ability to manage coastal protection responses as well as implement physical measures, including seawalls and rock and concrete revetments.

On May 3, 2024, Australian Minister for International Development and the Pacific Pat Conroy announced a pledge of AUD492 million (US$317 million) to the Asian Development Funds’ 14^th pledging round, covering the period of 2025–2028.

The low-interest financing arm of the ADB focuses on grants to lower-income countries. Conroy emphasized the value of these grants to regional needs such as climate resilient hospitals and education facilities, as well is improving the systems that run them.

Conroy indicated Australia had worked with representatives from Kiribati and the Cook Islands to ensure that more funding would be received by the Pacific. An increase of over AUD500 million (US$323 million) was expected for the Pacific, compared to the previous replenishment.

Australia has also pursued arrangements to ensure access to finance for people in Afghanistan, Myanmar, and the Rohingya refugee population in Bangladesh, particularly women and girls. Australia urged the ADB and the World Bank to improve their procurement processes by avoiding approving artificially low-priced, poor-quality projects where higher prices were later demanded during implementation. Conroy encouraged tender processes to focus more strongly on quality and value for money and expressed concerned that low bid prices were discouraging a broader range of bidders from seeking work, particularly in the Pacific countries.

Australia is the second-largest contributor to the fund, behind Japan.

On April 13, 2024, Australia has announced it will invest a further AUD17 million(US$11 million) to extend the BPP through 2028.

Through the BPP, Australia funded a partnership with organization Gold Standard and the International Rice Research Institute to assist sustainable rice project developers. The hub assisted scaling carbon market access within Vietnam and in global markets. It aims to significantly reduce methane emissions and also to provide possibilities for more income for smallholder farmers.

The BPP promotes development by partnering with academia, not-for-profit organizations and businesses to create jobs and increase incomes. It also aims to empower women.

The four countries covered by the program are Vietnam, Samoa, Sri Lanka, and Fiji.

On March 26, 2024, according to Australian Minister for International Development and the Pacific Pat Conroy, Tuvalu’s new government has confirmed it would proceed with the Falepili Union treaty.

This treaty enables 280 people to migrate to Australia from Tuvalu every year. It also protects Tuvalu’s statehood and respects its sovereignty. In turn, the agreement would obligate Australia to provide for Tuvalu’s national security and potentially allow an Australian a veto over other security arrangements.

Tuvalu has a population of about 11,000 people, located on 9 islands in the Pacific. Increasing flooding has been reported by Australian Broadcasting Corporation due to rising water levels.

On March 25, 2024, the forthcoming World Health Summit in Melbourne released its final detailed program.

The forum is slated to be hosted by Monash University and will focus on health issues across the Pacific and Southeast Asia. The summit will run from April 22 to 24, 2024, at the Melbourne Convention and Exhibition Centre.

A range of international and Australian speakers are listed for the three parallel sessions being held each day at the forum. Topics include drug policy, future proofing the health workforce and strengthening health care financing in the Asia-Pacific.

Speakers include Jed Carney, Australia’s Assistant Minister for Health and Aged Care, and Helen Clark, formerly Prime Minister of New Zealand and head of the UNDP.

On March 8, 2024, Australia and Laos committed to work in partnership regarding human development, economics and trade, energy, environment and climate, and law enforcement.

Australia committed to provide AUD3 million (US$2 million) in the FY2023/34 to support research to eliminate dengue fever via the World Mosquito Program conducted by Monash University.

The university’s program of breeding mosquitoes with Wolbachia bacteria has been active in the ASEAN region as well as other countries. A rigorous evaluation in 2021 in Jogjakarta demonstrated the technique led to a reduction of 77% in dengue incidents, and an 86% reduction in hospitalizations due to dengue.

The World Mosquito Program focuses on mosquito borne diseases including yellow fever, Zika, chikungunya and dengue.

On March, 6, 2024, IFAD President Dr. Alvao Lario visited Australia to seek funding for IFAD.

Australia withdrew from the organization in 2003, citing a lack of focus on the Asia-Pacific.

Speaking at the Australian National University, Lario emphasized the benefits of IFAD’s work in Austrlia, particularly as it relates to climate adaptation in the Pacific. He also spoke at a major Global Citizen NOW event in Melbourne.

Lario stressed that IFAD focuses on low-income, rural communities and mitigating the impact of climate change on them. He also visited the Solomon Islands and held discussions with Prime Minister Manasseh Sogavare before arriving in Australia.