Remarks at Climate Finance Roadmap event - UK Pavilion, COP22
Minister Hurd, Director GeneralUpton, distinguished guests, Ministers, ladies and gentlemen,
Australia, with the United Kingdom, was pleasedto lead developed countries to deliver the Climate Finance Roadmap to theUS$100 billion goal.
I express our special thanks to Nick Hurd forhis role in bringing yet another Australian-UK partnership to a successfulresult.
We delivered the Roadmap in advance of COP22 tofulfill our mandate from the Paris conference and to provide confidence aheadof this conference. We trust the Roadmap has done this.
I'm confident that with four years to go until2020, the Roadmap tells a positive story.
It most certainly reaffirms that developedcountries are committed to achieving the US$100 billion goal, and itshows that we are on track.
Providing certainty about future climatefinance at the global level is not a simple exercise.
Many countries can't give information aboutfuture budgets; there are significant unknowns including demand from developingcountries, project pipelines, and macro-economic factors. Methodologies arestill being developed.
To help manage these uncertainties, we engagedthe OECD to provide expert analytical support.
Based on that analysis, the Roadmap suggeststhat 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 substantialpledges many developed countries and multi-lateral development banks made overthe course of 2015.
It is a significant sum, and suggests themajority of the US$100 billion will be met with public funds. We know thatadaptation is a priority for many countries, and the Roadmap demonstrates thecommitment of developed countries to providing finance for improving adaptionand resilience to climate change impacts.
The OECD estimates that public finance foradaptation in developing countries will at least double between 2013-14 and2020. The Roadmap also shows the significant efforts developed countries aremaking to mobilise more private sector finance.
This is critical for the US$100 billion and forthe broader transition to a low-emissions, climate resilient global economy, inkeeping with the Paris Agreement.
The Roadmap underlines that developed countrieswill continue to work with developing countries to improve mobilisation ofprivate finance as part of the US$100 billion goal. For Australia, mobilisationof private finance is a priority.
The low-carbon economy is worth $6 trillion andgrowing. There are now more opportunities than risks.
I am certainly encouraged by the response ofAustralian businesses. They are looking to seize opportunities and I know manyother countries and private sector initiatives in other countries are doing thesame.
We're also investing in a range of initiativesto help attract private sector investment in projects in developing countries.
We are, if you like, de-risking energyinfrastructure projects through our $32 million investment in the PrivateInfrastructure Development Group. Through this we have supported hydropower insome of the poorest areas of Vietnam, and wind power in Pakistan. These are twoexamples.
We are providing $3 million to the PrivateFinancing Advisory Network which identifies and mentors promising clean energyentrepreneurs in the Indo-Pacific to access equity and debt financing.
And through our role as Co-Chair, Australia ishelping the Green Climate Fund use its substantial capital to leverage evengreater levels of private finance.
So progress this year has been promising.
The GCF's Private Sector Facility has approvedsix funding proposals totaling over US$607.5 million. This will leverage anestimated US$9.4 billion.
Our Clean Energy Finance Corporation committeda 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 effortsto spur private investment and sharing the lessons we learn along the way, andthat's going to be critical to maximising our return on investment, in terms ofemissions reductions.
We are sharing the Clean Energy FinanceCorporation's significant expertise with international partners through theInternational Green Bank Network.
So as the Roadmap demonstrates, we are wellunderway.
Developed countries are committed to financingaction to minimise the extent and impact of climate change.
And ladies and gentlemen, this is critical toour success. So I'm delighted to be here with Nick Hurd. Thank you very muchfor your attendance.