New analysis of Australia's foreign aid spending recommends a more direct way to help our Pacific neighbours, following the failure to win the right to host next year’s COP climate talks.
Fri 21 Nov 2025 10.30
Photo: AAP Image/Supplied by Smart Energy Council
New analysis of Australia’s foreign aid spending recommends a more direct way to help our Pacific neighbours, following the failure to win the right to host next year’s COP climate talks.
The analysis, compiled by The Australia Institute, recommends giving the money which would have been spent on COP – around $1 billion – directly to the Pacific Island nations already devastated by climate change.
Prime Minister Anthony Albanese and Climate Change Minister Chris Bowen had always claimed the bid to hold COP31 in Adelaide was to highlight the plight of Pacific nations whose very future is under threat from rising seas and extreme weather events, like surging tides.
In conceding COP hosting rights to Türkiye, the Prime Minister insisted his top priority was to help what he often refers to as Australia’s “Pacific family”.
“What we would seek to do is to ensure that the Pacific benefited from that through measures, potentially like a leaders’ meeting to be held in the Pacific,” Mr Albanese said.
“We will prioritise making sure that the Pacific’s interests are looked after, but this is a difficult situation because of the rules and the way that they operate.”
Yesterday, however, Australia Institute co-CEO Dr Richard Denniss, said there was a simpler, more direct way to help nations like Tuvalu and Kiribati.
“Giving the money Australia saved by not hosting the COP straight to the Pacific to help them adapt to the climate crisis – which Australia’s fossil fuel exports cause – is by far the easiest way to deliver on the Prime Minister’s desire to help,” Dr Denniss said.
“The Pacific could use the money to kick-start the 100% renewable Pacific plan, launched by the Australian Government and several Pacific leaders last week.”
“It would be a way to keep climate action in the Pacific even though the climate talks are heading back to the northern hemisphere.”
Dr Denniss co-authored a report with Senior Economist Matt Saunders which underlines the urgent need for direct climate assistance.
It highlighted Australia’s generational failure to live up to foreign aid commitments and a string of questionable claims about providing climate finance to developing countries.
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The report, titled Foreign aid and climate finance, Australia’s dismal track record, revealed that the Albanese Government’s foreign aid spending is lower than the Abbott, Rudd and Gillard Governments.
“Under the United Nations Framework Convention on Climate Change (UNFCCC) a key principle is that climate finance should be in addition to [Official Development Assistance (ODA)], not a substitution for ODA and not double counted,” the report states.
“When this principle of additionality is applied it is clear that the Australian Government’s climate finance contribution in the five years to 2025 is zero dollars.”
Dr Denniss said the analysis exposes huge gaps between the Albanese Government’s rhetoric and action on climate change, and support for Australia’s Pacific neighbours.
“Australia’s aid spending is at a 50-year low and if the Government isn’t spending a billion dollars hosting COP, sending that money straight to the Pacific is the easiest way to turn the rhetoric of climate leadership into reality,” he said.
“Australia’s dismal track record on aid spending means the billion dollars saved from missing out on the UN climate conference provides Australia with a unique opportunity to resuscitate its reputation, regain trust with Pacific nations, and show genuine climate leadership.”
He pointed out that Australia is “at the back of the pack when it comes to aid. Not only do we rank 28th in the OECD, the Albanese Government’s spending on aid is lower than that of the Abbott Government.”
As part of the deal to concede COP31 hosting rights to Türkiye, Minister Bowen said pre-COP31 talks would be held in a Pacific Island nation.
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