Climate Change and the Environment

The Challenge

While rapid economic growth in the developing world is essential in providing the necessary resources for poverty reduction, some economic growth can also place pressure on natural systems. The health of these systems is particularly important to the rural poor as their wellbeing and livelihoods are heavily dependent on productive soil, forests, oceans and fresh water. Without protecting natural systems, there is a risk that livelihood gains made through economic growth and development will not be sustainable over the long term.

The pressures on natural systems are also predicted to intensify with climate change. The associated risks should be considered a development challenge as well as an environmental issue. Climate change will potentially impact on all major development sectors, through potential for increased vulnerability of communities to disasters, increased spread of disease, lowered agricultural productivity and increased cost of infrastructure provision. Moreover, the countries most vulnerable to climate change are often the least able to manage the challenge of adapting.

Some Asian developing countries are, or will become, substantial sources of greenhouse gas emissions through energy generation, transport, industrial activity and, importantly, deforestation.

Deforestation, particularly in tropical developing countries, is estimated by the UN to cause up to 20 per cent of global greenhouse gas emissions. Reducing deforestation and forest degradation is potentially a highly cost-effective way of reducing greenhouse gas emissions. The United Nations Climate Change Conference in Bali in December 2007 indicated support for demonstration activities to reduce emissions from deforestation and degradation (REDD) in developing countries, with a view to possible incorporation of REDD into a future international climate change agreement.

Australia's international development assistance program can play a significant role in helping countries sustain and build upon the economic development gains already achieved by ensuring that decision-makers are supported in their efforts to mitigate the national and global environmental, social and economic impacts of their development choices, and to adapt to environmental changes that cannot be avoided.

Australia's response

Addressing environmental and climate change challenges is central to the poverty reduction efforts of the development assistance program. Australia has committed significant resources to combat the effect of climate change globally and in our region. The Government's ratification of the Kyoto Protocol demonstrated its commitment to participating fully in international efforts to address the issue of global warming. Australia will work closely with other donors, international organisations and developing countries to identify needs and effective responses in the areas of adaptation, technology cooperation and deforestation.

Donors are increasingly making significant pledges on climate change mitigation and adaptation measures which will result in extensive pilot activity within the next year or so to inform negotiations under the United Nations Framework Convention on Climate Change (UNFCCC). Australia is collaborating with other donors, including the UK, Germany, Norway, and the Clinton Foundation on developing and implementing climate change initiatives.

Environmental Management Guidelines

Environmental safeguards are built into the development assistance program. The Australian Government's administration of development assistance must comply with the legislative and regulatory requirements of the Environment Protection and Biodiversity Conservation Act 1999 and related regulations by applying appropriate levels of assessment and management to all aid activities.

The Environmental Management Guide for Australia's Aid Program provides for the assessment, management and mitigation of potential environmental impacts to be incorporated into Australia's aid activities. The guidelines also require that partners in delivery of the aid program implement the assessments and measures needed to manage the environment.

See also on this website:

Aid Stories and People

Examples of Australia's international development assistance program in action:

Further information

For further information on climate change and environment in the aid program contact Infoausaid@ausaid.gov.au.

Related Websites (external)

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July 2008