The Albanese Government has committed to building a global net-zero economy at COP28 in Dubai, signing up to the statement on International Public Support for the Clean Energy Transition Partnership (CETP).
Australia is joined by at least 40 countries including the US, the UK, Canada, Germany and Fiji in aligning international investment strategies with decarbonisation priorities.
The Statement, more commonly referred to as the ‘Glasgow Statement’ or ‘CETP’ was launched by the UK at COP26 in 2021. It calls on signatories to commit to ending the investment of public money in overseas fossil fuel investments and channelling it into renewable energy projects instead,
The International Institute for Sustainable Development in 2022 estimated that if all signatories met their commitments, almost $28 billion in investment per year would shift from fossil fuels to renewable energy.
Smarter, more targeted investment
“Climate Change represents the greatest threat to the livelihoods, security and wellbeing of the peoples of the Pacific,” Minister for Foreign Affairs Senator Penny Wong said.
“Dealing with this threat means making smarter, more targeted investments across our region.
“That’s why we’re already contributing at least $350 million in climate infrastructure for the region, including $75 million for a program for off-grid and community-scale renewable energy in remote and rural parts of the Pacific.
“Joining the CETP further aligns our international public support with Pacific priorities.”
The move is an important step for Australia in its net-zero ambitions, as research by Jubilee Australia Research Centre has shown Australia’s export credit agency has financed overseas fossil fuel projects to the tune of more than $1.5 billion between 2009 and 2020.
“In joining the CETP, the Albanese Government is taking the long-overdue step of acknowledging that foreign aid and federal export finance should not be squandered on fossil fuel expansion – which is bad for people, for planet and our economies,” Jubilee Australia Research Centre climate justice campaigner James Sherley said.
“In Australia and across the Pacific, people are living day-to-day with the harsh realities of the climate crisis and they have made it explicitly clear that the need to end support for coal and gas is urgent.
“To deliver on its promise will require strong implementation which we will be watching closely.
“We hope that signing the CETP signals a broader, genuine effort of Australia to restore its reputation on the international stage.”
Taking the lead in the Indo-Pacific
Australia ranks as the 14th highest carbon emitter per capita in the world and the second highest (trailing only Indonesia) in the Indo-Pacific.
Given we’re also the third or fourth richest country per capita globally (depending on which metrics you use), the Australian Government believes we have a responsibility to invest that wealth in both our country’s and the region’s future.
“The Albanese Government is demonstrating its commitment to driving down emissions and driving up reliable clean energy by signing the CETP,” Assistant Minister for Climate Change and Energy Senator Jenny McAllister said.
“Australia is investing in the technology that will mean cheaper, cleaner and more reliable energy for Australia, the Pacific and the broader Indo-Pacific.
“Our renewable energy transformation is not just important for our country; it is important for our region.”