Policy Updates

On December 18, 2024, Australian Foreign Affairs Minister Penny Wong pledged AUD10 million (US$7 million) of support to the Ukraine energy fund to provide electricity and heat for Ukrainians during her visit to Kyiv.

She also announced that AUD66 million (US$43 million) would be provided to the EBRD, to help Ukraine in its reconstruction and recovery efforts.

Australia additionally planned to reopen its embassy in Kyiv which has been closed since 2022.

On December 17, 2024, the global campaign for assistance and development transparency, Publish What You Fund, released the report Commitments Without Accountability, which compares leading donors' commitments to locally led development, enabling effictive tracking and reporting on implementation.

The study focused on the extent to which donors had increased direct funding to local organizations. Of the five donors, including the Australian Department of Foreign Affairs and Trade, USAID, GAC, the Netherlands' Ministry of Foreign Affairs, and the UK’s FCDO, only USAID had the strategies, policies, comprehensive targets, and measurable public data to track its direct funding target.

The analysis created a Local Funding Matrix which looked at definitions, measurement, strategy, and policy to compare these 5 OECD DAC donors. Only USAID fulfilled all of the criteria; Australia has progressed in developing strategies, policies, and establishing a definition of local.

This work builds on Publish What You Fund's Metrics Matter series which tracked USAID 's progress towards its own 25% target by 2025, of which USAID is currently off track to meet. A third Metrics Matter report will be released in the spring of 2025, which will include all 5 donors.

On December 9, 2024, Australia announced a AUD140 million (US$89 million) agreement with Nauru, granting Australia veto power over Nauru's security, banking, and telecommunications deals with third countries, including China.

Under the deal, Australia will provide the funding over five years, including AUD40 million (US$26 million) for policing and security.

Nauru has a population of about 10,800 and is located in the Pacific. Australia’s Commonwealth Bank will establish a branch in Nauru in 2025.

On December 23, 2024, the Australian government launched a new searchable development data portal, the AusDevPortal, which covers over 900 Australian development projects and AUD4.8 billion (US$3 billion) in ODA across 122 countries during FY2022/23.

Details in the portal include total ODA value and project description, as well as geographic location and key documents about the activity.

The Australian government expressed its hope that the portal will improve confidence in and visibility of its ODA program by providing comprehensive data about development activities.

On November 28, 2024, Australian Foreign Minister Penny Wong released a new International Disability Equity and Rights Strategy to improve the lives of people with disabilities throughout Australia’s humanitarian and overseas development programs.

Wong announced a further AUD12 million (US$8 million) to assist access to technologies such as prostheses and wheelchairs in the Indo-Pacific. The policy will focus on five areas including eliminating discrimination, partnering with people with disability, seeking equity in climate, and humanitarian action.

The strategy was released ahead of the UN International Day of People with Disability, held on December 3, 2024.

On November 27, 2024, Australian Department of Foreign Affairs and Trade announced an allocation of US$57 million to the Towards Universal SRHR in the Indo-Pacific Program.

Program partners UNICEF, the UNFPA, Marie Stopes International, and the International Planned Parenthood Federation would work to improve information, education and the quality of services on reproductive and sexual health.

This program aims to advance the rights of women and girls in Southeast Asia, and work to eliminate violence against girls and women.

On November 21, 2024, the Lowy Institute published the annual Pacific Aid Map which confirmed Australia remains the largest donor to the Pacific region.

The 2024 Pacific Aid Map provided complete data from 2008-2022, the second major donor in the Pacific region is China, which overtook the US. Other Western donors reduced their ODA to the Pacific region largely due to overarching budget constraints and redirected funding to Ukraine.

In 2022, Australia provided AUD2.2 billion (US$1.5 billion) whilst China provided US$256 million. The publication indicated that China has continued to revise its approach, including shifting towards grants and away from lending programs.

In general, loans to the Pacific region have increased from 12% in 2009 to 40% in 2022, driven largely by an increased focus on infrastructure in the region.

On November 19, 2024, Australian Minister for Climate Change and Energy Chris Bowen announced a contribution of AUD50 million (US$33 million) to the Fund for Responding to Loss and Damage for countries affected by climate change.

Bowen noted that support for Pacific Island countries was a priority given the existential threat the countries face from climate change. Other donors contributing to the fund included Germany, Canada, the US, the UK, and the UAE.

The announcement was made alongside the Austrailian Minister for Foreign Affairs Penny Wong.

On November 16, 2024, the Australian government announced a partnership with Pacific nations to scale up energy grid transition, and improve energy security with a AUD125 million (US$82 million) investment in renewable energy at COP29..

Australia announced an AUD75 million (US$50 million) investment through the REnew Pacific program to help deliver community scale renewable energy and off-grid power to rural and remote areas in the Pacific.

A further AUD50 million (US$32 million) was pledged through the APPET in order to provide technical assistance which included feasibility studies, energy modeling, and grid studies.

Funding for APPET was being made available by repurposing funds previously allocated to the IPCOS by the former Australian Government.

On November 15, 2024, Australian Minister for International Development and the Pacific Pat Conroy announced that Australia would fund a new climate program to combine ODA with private capital to accelerate climate action at COP29.

Conroy noted that this would boost climate-focused efforts by businesses in South Asia, Southeast Asia, and the Pacific.

The AUD126 million (US$83 million) package would assist de-risking climate solutions to attract investors from the private sector.

Equity, loans, and guarantees would be used, and funds recovered will be reinvested. The package would also provide technical assistance in project analysis and impact measurement.