Page 13 - IB January 2024

Diplomacy Diplomacy

The aid program has seen significant changes over the last bit of funding for leveraging private sector investment in the
decade, after AusAID ceased to exist as a separate entity region, which I think is really important. The government
in November 2013, under the conservative Liberal/National has shown again through the money its putting into buying
party Coalition. The integration of AusAID into DFAT was down risk for the private sector, we do want private sector
difficult, with many people in the development community investment, and we do want philanthropic investment in the
using words like “take-over” rather than “merger.” In 2014, region.”
the Coalition government slashed nearly 20% of the aid budget In contrast, the Australian government is yet to commit
in its first budget, speeding up the privatisation of aid and funding to the new Loss and Damage Fund, initiated at the
increasing the role of corporate consultants in aid delivery. opening ceremony of COP28.
“When the transition or integration happened, we did lose “In terms of loss and damage, we will be funding some
a lot of development capability at that point, but we also projects out of the Pacific Resilience Fund,” McDonald said.
maintained some of our very good people as well,” he said. “To be honest, I think that what we want to do is to have a
“A lot of the people involved in contracting now are those look at the Loss and Damage Fund as it develops, so that we
that have previously worked with AusAID. The most important are assured that operationally it’s going to come out into the
thing for me is that we are measuring the performance of region. In the future, if we see that occur, we’ll give it some
what we’re outsourcing, getting the value for money that we consideration.”
expect.”
Security trade offs
Climate finance At a time of US-China strategic competition, McDonald told
Members of the Alliance of Small Island States (AOSIS) are Islands Business that “the geostrategic challenge highlights
calling for industrialised nations to urgently ramp up climate some of the areas that are important around policing
funding for adaptation, mitigation and addressing loss and and defence for the sovereignty of the region, and we’re
damage. responding to what the region is asking of us.”
Current climate finance from Australia is mostly drawn He highlighted the new Falepili union between Australia
from the ODA budget, but Australia’s ranking among donors and Tuvalu, signed by Prime Ministers Albanese and Natano
has fallen from ninth highest (1995) to 13th (2013) and then at November’s Forum in Rarotonga. He noted the treaty has
to 27th (2022), the fourth lowest amongst Organisation for been “released into the public domain”, a not-so-subtle
Economic Cooperation and Development (OECD) nations. The contrast to the China-Solomon Islands security treaty.
2023-24 budget papers suggest ODA funding will stabilise—but The ratification of the Falepili Union by Tuvalu will be
not increase—over the next decade. In 2025, however, OECD contingent on the make-up of Tuvalu’s next Parliament,
countries are supposed to ramp up their target for climate as people vote in national elections on 24 January. Tuvalu
finance, having already failed to meet the 2020 target. Opposition leader, Enele Sopoaga, has been sharply critical:
Last month, Climate Minister Chris Bowen announced that “The initiative was never consulted with the people of Tuvalu,
Australia would provide A$50 million to the Green Climate nor was it ever raised in Parliament. It is not a climate change
Fund (GCF), the first contribution since 2014. response. It is ceding Tuvalu sovereignty to Australia. It
In its early days, Ewen McDonald served as co-Chair of the reverses Tuvalu’s political status to that of 45 years ago.”
GCF Board for three years. During that period, he says; “We McDonald disagrees with these criticisms, noting: “Tuvalu
worked hard to leverage funds for the Pacific, but it was very came to us requesting an elevation of our relationship. Part
hard to get the funding out and there are some examples of that is up to 280 visas to seek residency in Australia each
where it took many years. People have said we should rejoin, year. Another important aspect was around the security
so we’ve done so in a modest way until we can see whether guarantee, when the country needs support around a disaster
the GCF can be simplified in terms of simplification of access, or something that concerns them around their sovereignty
but also that the Pacific is getting the focus it deserves.” that we could have people come and support them.”
At COP28, Australia also announced a $100 million Whether it’s bidding to host COP31 while maintaining fossil
contribution to the proposed Pacific Resilience Fund (PRF), a fuel exports, or spending A$368 billion on nuclear submarines
regional structure designed for easier access to funding for as atoll nations desperately seek climate finance, there will
adaptation, resilience and loss and damage. be ongoing tensions around Australia’s regional priorities.
“The difference between the GCF and the Pacific Resilience Facing these challenges, Special Envoy McDonald has quite a
Fund is that we know the PRF funding is going to the Pacific,” workload as Australia expands its role in the region.
he added. “It will be grant funding in a simplified mechanism
that enables funding to come out for small projects. In nicmaclellan@optusnet.com.au
addition, we are putting in place eight Climate Access
Advisors across the region to help them access these funds.
“In the new development policy, there is quite a substantial

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