The Australian Government has expanded investment in climate infrastructure, doubled the AIFFP’s grant funding, and strengthened the AIFFP’s capability through the October 2022-23 Budget.
Recognising that climate change is the single greatest threat to the livelihoods and well-being of our Pacific family, the Australian Government has expanded its investment in climate infrastructure through the Pacific Climate Infrastructure Financing Partnership to be implemented by the AIFFP.
The Partnership will build on the existing portfolio of climate-focused investments to prioritise projects that assist countries to respond, and adapt, to climate change risks and impacts.
Under the Pacific Climate Infrastructure Financing Partnership, the AIFFP will:
- increase support for medium and large-scale, climate-related infrastructure projects that mitigate, adapt, and build resilience to the impacts of climate change
- green existing or future AIFFP investments by integrating climate-smart enhancements.
The AIFFP will continue to offer grants and concessional financing packages for investments that are sustainable, transparent and meet international standards. This reflects Australia’s commitment as a major lender in the region, to ensure unsustainable debt burdens are not imposed on our Pacific family, especially amidst global economic headwinds and rising interest rates.
The Government has grown the AIFFP to a $4 billion facility by doubling the grant funding available under the AIFFP ($1 billion in grants and $3 billion in loans, drawn from the existing ODA allocation). Additional funds have also been provided to strengthen the AIFFP’s project management and risk capability reflecting that construction and procurement has started across nine countries.
Joint media release: Making Australia stronger and more influential in a contested world | Australian Minister for Foreign Affairs and Minister for Women, and Australian Minister for International Development and the Pacific, and Minister for Defence Industry
Australian Official Development Assistance October Budget Summary 2022-23