10/11/2021 - 09:39

Australia supports Southeast Asian countries in climate change response 

A forest in Indonesia (Photo: factsofindonesia.com)
Australian Foreign Minister Marise Payne has announced 500 million AUD (350 million USD) to support Southeast Asian countries to adapt to climate change through better management of forests, land and agriculture.

The announcement was given while the Australian FM is touring four Southeast Asian countries Malaysia, Vietnam, Cambodia and Indonesia.

In statement released on November 8, the Australian FM clarified that "these investments form part of the Morrison Government's recent decision to increase its climate finance to 2 billion AUD through to 2025 to support mitigation and adaptation efforts in the our region."

The investments leverage the Australian Government's development assistance to mobilise much larger levels of private sector investment into the region.

The Australian Climate Finance Partnership will make its initial investment of around 13 million AUD in a Southeast Asia sustainable forestry fund – the Tropical Asia Forest Fund 2. This contribution will target climate, biodiversity, and livelihood outcomes associated with the fund's forestry activities and help to mobilise a total fund size of 300 million AUD. Investments will be made in Malaysia and Indonesia, and potentially other countries in the region.

Payne said that the Australian Government is also providing separate design assistance through the partnership with Convergence Blended Finance for a new Asia Climate-Smart Landscape Fund in Indonesia. This fund aims to mobilise 200 million AUD and will support long-term loans to small and medium enterprises to achieve sustainable agriculture, land regeneration, and forest protection outcomes.

By bringing the resources and expertise of the public and private sectors together, the Australian Government is amplifying the impact of the climate finance. This not only increases the pool of climate finance available in partner countries, but also encourages solutions that support sustainability and resilience.

These new investments highlight the Australian Government's commitment to deepening its climate cooperation with partners across Southeast Asia in ways that focus on the region's priorities, according to Payne./.