Minister Hurd, Director General Upton, distinguished guests, Ministers, ladies and gentlemen,
Australia, with the United Kingdom, was pleased to lead developed countries to deliver the Climate Finance Roadmap to the US$100 billion goal.
I express our special thanks to Nick Hurd for his role in bringing yet another Australian-UK partnership to a successful result.
We delivered the Roadmap in advance of COP22 to fulfill our mandate from the Paris conference and to provide confidence ahead of this conference. We trust the Roadmap has done this.
I’m confident that with four years to go until 2020, the Roadmap tells a positive story.
It most certainly reaffirms that developed countries are committed to achieving the US$100 billion goal, and it shows that we are on track.
Providing certainty about future climate finance at the global level is not a simple exercise.
Many countries can’t give information about future budgets; there are significant unknowns including demand from developing countries, project pipelines, and macro-economic factors. Methodologies are still being developed.
To help manage these uncertainties, we engaged the OECD to provide expert analytical support.
Based on that analysis, the Roadmap suggests that publicclimate finance in 2020 will amount to US$67 billion – that’s an increase of US$24 billion on 2013-14 levels.
This increase is a result of the substantial pledges many developed countries and multi-lateral development banks made over the course of 2015.
It is a significant sum, and suggests the majority of the US$100 billion will be met with public funds. We know that adaptation is a priority for many countries, and the Roadmap demonstrates the commitment of developed countries to providing finance for improving adaption and resilience to climate change impacts.
The OECD estimates that public finance for adaptation in developing countries will at least double between 2013-14 and 2020. The Roadmap also shows the significant efforts developed countries are making to mobilise more private sector finance.
This is critical for the US$100 billion and for the broader transition to a low-emissions, climate resilient global economy, in keeping with the Paris Agreement.
The Roadmap underlines that developed countries will continue to work with developing countries to improve mobilisation of private finance as part of the US$100 billion goal. For Australia, mobilisation of private finance is a priority.
The low-carbon economy is worth $6 trillion and growing. There are now more opportunities than risks.
I am certainly encouraged by the response of Australian businesses. They are looking to seize opportunities and I know many other countries and private sector initiatives in other countries are doing the same.
We’re also investing in a range of initiatives to help attract private sector investment in projects in developing countries.
We are, if you like, de-risking energy infrastructure projects through our $32 million investment in the Private Infrastructure Development Group. Through this we have supported hydropower in some of the poorest areas of Vietnam, and wind power in Pakistan. These are two examples.
We are providing $3 million to the Private Financing Advisory Network which identifies and mentors promising clean energy entrepreneurs in the Indo-Pacific to access equity and debt financing.
And through our role as Co-Chair, Australia is helping the Green Climate Fund use its substantial capital to leverage even greater levels of private finance.
So progress this year has been promising.
The GCF’s Private Sector Facility has approved six funding proposals totaling over US$607.5 million. This will leverage an estimated US$9.4 billion.
Our Clean Energy Finance Corporation committed a record $837 million in 2015-16, a 73 per cent increase on the year before, bringing total commitments to $2.3 billion.
Now it is early days in our collective efforts to spur private investment and sharing the lessons we learn along the way, and that’s going to be critical to maximising our return on investment, in terms of emissions reductions.
We are sharing the Clean Energy Finance Corporation’s significant expertise with international partners through the International Green Bank Network.
So as the Roadmap demonstrates, we are well underway.
Developed countries are committed to financing action to minimise the extent and impact of climate change.
And ladies and gentlemen, this is critical to our success. So I’m delighted to be here with Nick Hurd. Thank you very much for your attendance.
- Minister's office: (02) 6277 7500
- DFAT Media Liaison: (02) 6261 1555