Australia’s climate finance
The Australian Government is taking strong action on climate change at home and internationally. Australia delivered $3.9 billion in climate finance from 2020 to 2025.
We have listened to the Pacific's call for urgent climate action, and are working closely together to address the climate emergency. We met our commitment to provide $1.3 billion in climate finance to the Pacific, the majority for adaptation.
Through the International Development Policy, Australia has placed climate change at the centre of its approach to international development, recognising that climate change has an impact on all development outcomes.
Key highlights
Strengthening climate resilience
Australia’s International Development Policy commits to incorporating a climate objective in at least 50 per cent of all new bilateral and regional investments & valued over $3 million in 2024–25, rising to 80 per cent by 2028–29.
In 2024–25, we reached 48 per cent (31 out of 65 investments), helping our partners to tackle climate change, for example through building resilience to climate impacts and disasters, and adopting clean energy and low emissions technologies.
An additional 28 per cent of investments (18 out of 65) took a mainstreaming approach to climate change. While mainstreaming does not fall in scope for the target, 75 per cent of programs actively considered climate change in their investment designs.
Climate risk integration
We are incorporating climate risk into our development partnership plans, ensuring our investments are climate-resilient and sustainable.
Alignment with partner plans
Our bilateral programs are aligned with our partners’ Nationally Determined Contributions and National Adaptation Plans, making sure we are supporting their long-term climate plans.
These actions demonstrate Australia’s recognition that effective and sustainable development outcomes require climate resilience across all regions, countries and sectors.
Delivering clean energy to remote communities
Around eight million people across the Pacific and Timor-Leste lack access to reliable, affordable energy. Through the REnew Pacific program, Australia is helping deploy off-grid renewable energy systems to remote communities. In Vanuatu, the program equipped remote health facilities with reliable solar power, improving medical care for more than 80,000 people.
Transparency in climate financing reporting
Australia is committed to transparency in climate finance. We report our contributions through several channels to ensure accountability:
- OECD development finance reporting
Using the Rio markers for climate - UNFCCC climate finance reporting
This includes Biennial Transparency Reports and Biennial Communications - DFAT's annual official development assistance (ODA) statistical report
Providing data on ODA climate finance in our annual statistical table - DFAT website climate pages
Featuring comprehensive information on Australia’s climate finance commitments, including the total climate finance provided and mobilised - Nature-based solutions evaluation