Australia pledges $125 million to support Pacific’s renewable energy shift

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The Australian government announced at the UN Climate Change Conference in Azerbaijan that it is partnering with Pacific nations to support their clean energy transition and improve energy security with a $125 million (USD 80.76 million) investment in renewables.

Australian Foreign Minister Penny Wong said the investment aims to equip nation partners in the Pacific region with the tools needed to progress their energy transition and ensure policy and regulations are in place to help scale up grid-based renewable energy assets and infrastructure.

“Supporting Pacific nations’ transition to renewable energy and away from imported fossil fuels will enhance economic resilience, improve energy security and help them meet their climate goals,” she said.

The funding, which comprises a $75 million investment through the REnew Pacific program and $50 million through the Australia-Pacific Partnership for Energy Transition (APPET), was announced at the COP29 talks taking place in Azerbaijan.

Australia’s Department of Climate Change, Energy, the Environment and Water (DCCEEW) said the new funding will support a range of projects and collaborations, including with governments, energy operators, universities and companies.

“The investment responds to Pacific priorities to capture more of the benefits of renewable energy investments,” the federal government said.

“This may include energy transition modelling, grid studies, renewable energy project feasibility studies, university collaborations and other activities to support energy transition progress.”

“It will support the skills and training needed to grow the Pacific’s renewable energy workforce and provide practical, Pacific-led support to Pacific governments and energy operators.”

The DCCEW said it will continue to work with Australian and Pacific stakeholders to design the partnership with further details, including governance arrangements for the partnership and areas for collaboration, to be shared in early 2025.

Federal Energy Minister Chris Bowen, who is to co-chair negotiations at the COP29 talks that will determine a new collective climate finance package, said the new Pacific funding package will be key for the region’s energy transition.

“Climate change is no longer an abstract concern, it’s a reality and an existential threat for Pacific nations,” he said.

“Australia is working with our Pacific neighbours to strengthen their energy security and accelerate the renewable energy transformation across our region.”

“Each step we take to fight climate change is a step back from the brink, and Australia is dedicated to working with our Pacific neighbours to make sure our next steps are the right ones.”

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