Climate change mitigation

Assisting countries with policies and programs that support sustainable development, particularly through initiatives that reduce the carbon footprint associated with the growth of their economies, is an increasingly important area of work for AusAID.

International Forest Carbon Initiative

Australia's International Forest Carbon Initiative (IFCI) [external website]—jointly implemented by AusAID and the Department of Climate Change and Energy Efficiency (DCCEE)—aims to demonstrate that Reducing Emissions from Deforestation and Forest Degradation in Developing Countries, or REDD+, can be part of an effective international response to climate change. Total funding allocated for the initiative to date is $273 million.

Under this Initiative, Indonesia and Australia are working collaboratively through the Indonesia-Australia Forest Carbon Partnership. This partnership supports activities designed to demonstrate how investment in REDD+ can achieve emission reductions, while promoting livelihood options for forest-dependent communities. The partnership is operating in three key areas:

supporting national policy frameworks for REDD+
increasing Indonesia’s capacity to measure greenhouse gas emissions related to forests
implementing incentive-based REDD+ demonstration activities.

It has also helped establish a forest fire monitoring system to assist Indonesia to effectively monitor, manage and prevent large scale fires.

Through the PNG–Australia Forest Carbon Partnership [external website], Australia has committed up to $3 million in initial funding which includes technical, scientific and analytical support for whole of government policy development on REDD+.

Australia's contribution to the Forest Carbon Partnership Facility [external website] will assist developing countries to establish credible estimates of their national forest carbon stocks, identify sources of forest-related emissions, determine the opportunity costs of avoided deforestation interventions and design appropriate response strategies.

International Forest Carbon Initiative Concept Development Grants

Under the International Forest Carbon Initiative, up to $1.5 million has been made available to support international non–government organisations (NGOs) to develop concepts for REDD+ demonstration activities.
International NGOs have practical, on the ground experience, particularly in providing alternative livelihoods to local communities and in developing and implementing programs that provide payments for environmental services. The International Forest Carbon Initiative aims to draw upon this knowledge by supporting relevant NGOs to develop concepts for incentive–based REDD+ demonstration activities in Indonesia and Papua New Guinea.

The three key objectives of the grants are to:

Demonstrate, through the activity concepts, that REDD+ can be part of an equitable and effective future global outcome on climate change.
Promote creativity, transparency and methodological rigour by supporting the development of a range of ideas to identify how investment in REDD+ can achieve emission reductions while promoting sustainable livelihood options for forest-dependent communities.
Strengthen linkages between local initiatives and national governments in order to inform those governments’ thinking on how to shape national REDD+ strategies and launch demonstration activities in selected areas/landscape types.

The grant funding supports the development of initial demonstration activity concepts, which are then provided to the host country’s national governments for their consideration.

Other climate change mitigation activities

Australia also provides assistance to improve energy sector policies, finance high priority energy projects and support clean energy initiatives. This includes activities that address issues such as energy efficiency and renewable energy in the Mekong and Pacific regions. Australia's partnerships with the multilateral development banks and other donors include the following:

A two year, $7 million program of support to the Clean Energy Financing Partnership Facility, managed by the Asian Development Bank. The facility provides financial resources and technical support to improve energy security in developing countries and reduce carbon emissions through increased use of clean energy.
$3 million over two years to a global technical assistance program managed by the World Bank. The Energy Sector Management Assistance Program helps build consensus and provides policy advice on sustainable energy development. It also contributes to the transfer of technology and knowledge in energy sector management and the delivery of modern energy services to the poor.

Last reviewed: 4 April, 2012