Canberra pulled out from the initiative in 2018 citing governance issues
Australia on Thursday rejoined the UN-led Green Climate Fund (GCF) after five years, reversing the decision by Scott Morrison’s government in 2018.
The GCF was set up as part of the 2015 Paris Agreement on Climate Change. It takes donations from developed countries and uses the money to finance climate mitigation and adaptation projects in developing countries, and has raised more than $20 billion in two funding rounds.
“Australia will be re-joining the Green Climate Fund, with a modest contribution to be announced before the end of the year,” spokesperson for Foreign Minister Penny Wong said in a statement.
“We recognise that the GCF is the most prominent global climate finance fund, and we will work with partners to improve the GCF’s effectiveness.”
The press release, however, added that Australia is helping the Pacific’s transition into renewable energy, and will continue to boost financing to the region “directly” as well.
The Morrison government had cited governance issues with the fund when making its decision to withdraw, arguing it would work directly with developing countries to help them develop climate resilience.
Canberra provided 200 million Australian dollars ($127.4 million) to the fund between 2015 and 2018.
The decision comes ahead of a GCF donor conference in the German city of Bonn later on Thursday.