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Nauru’s president Baron Waqa with prime minister Tony Abbott at this month’s CHOGM meeting in Colombo.
Robert Schmidt/ AFP
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Source:
Inside Story
STANDING on the podium in Warsaw this week, president
Baron Waqa of Nauru wasn’t mincing his words. “Many of the countries
most responsible for climate change are retreating from their moral
responsibility and obligation to act,” he said. “Consequently, we are
lacking the urgent ambition required to lower emissions in the short
time we have to avert catastrophe.”
This year’s global climate negotiations haven’t gone well. The
Alliance of Small Island States, or AOSIS, is angry that many developed
nations are abandoning pledges to provide financial support for the most
vulnerable islands affected by global warming. Speaking on behalf of
this forty-three-member bloc, Waqa
stressed the
vital role of climate finance in responding to the climate emergency.
“We are missing the all-embracing idea of human solidarity that
underpins the concept of ‘loss and damage,’” he said, referring to the
devastation to land, water supply, agriculture and infrastructure caused
by delays in reducing greenhouse gas emissions and the failure to fund
the necessary adaptation.
Leading the retreat at Warsaw is the Australian government. In
December last year, the Coalition’s shadow climate minister, Greg Hunt,
said that an Abbott government would not give a “blank cheque” to cover
loss and damage. Now, as federal environment minister (“climate” having
been removed from the title), Hunt has refused to attend the Warsaw
negotiations and is making good on his pledge to stop the cheques.
At this month’s Commonwealth Heads of Government Meeting in Sri
Lanka, the Abbott government ditched Australia’s pledge to contribute to
the Green Climate Fund, an innovative new funding mechanism for dealing
with the effects of climate change.
In their
final communique,
the CHOGM leaders “recognised the importance attached to both the
operationalisation and the capitalisation of the Green Climate Fund.”
But a footnote recorded that “Australia and Canada had reservations
about the language of paragraphs 18, 19, 20 and 21 and indicated that
they could not support a Green Capital [
sic] Fund at this time.”
Hunt made clear in December last year that the Coalition wouldn’t
support this multilateral body. “This is not a fund which we support. We
have no control over where the money goes, no control over how it’s
used, no control over how much we pay and this is something which we
clearly, simply, categorically reject.” At the time, international
observers were astounded by the chutzpah of this statement. Australia
had played a central role in the creation of the fund, with AusAID’s
deputy director-general, Ewen McDonald, appointed co-chair of the Fund’s
board for its first year of operation. Australian officials have played
a crucial role in determining the Fund’s mandate, operations and
policies.
In Warsaw, Australian negotiators also disrupted talks on the “loss
and damage” agenda, leading to a walkout by the “G77 plus China”
delegates, the 132-member bloc currently chaired by Fiji. As noted
climate researcher Saleemul Huq
told the
Guardian,
“Discussions were going well in a spirit of cooperation, but at the end
of the session on loss and damage Australia put everything agreed into
brackets, so the whole debate went to waste.”
At a time of
diplomatic turmoil with Indonesia, these attacks on
climate finance, coupled with recent cuts in the aid program, will have
long-term strategic implications for Australia’s relationship with
Pacific island neighbours. Although Australia remains the major provider
of aid, trade and military cooperation in the Pacific islands region,
the days when it could use aid to call the shots are long gone. The old
relationship is no longer the only game in town: in the same month that
Canberra overturned Australia’s policy on climate finance, China
announced US$1 billion in concessional loans for the Pacific islands.
Alongside China’s increasing diplomatic influence in the Pacific, a
range of other players – from Cuba, Russia and Indonesia to unexpected
actors like the United Arab Emirates – are complicating policy in the
islands for the ANZUS allies. With larger countries like Papua New
Guinea and Fiji taking more assertive regional and international roles,
many Australians underestimate the rapidity of change in our region. The
latest cuts in aid and climate finance can only accelerate that
process.
SINCE Copenhagen in 2009, OECD nations have pledged
funds for adaptation and mitigation initiatives in the developing world.
Thirty billion dollars was committed for fast-start financing in
2010–13, and the agreed target for 2020 is an annual US$100 billion of
public and private funds.
But many obstacles already stand between these funds and the most
vulnerable communities, including the inadequacy of funding pledges, the
balance between money allocated for adaptation or mitigation, a lack of
donor coordination, the complexity of funding mechanisms and the
special vulnerability of small island developing states and
least-developed countries – countries that barely contribute to global
greenhouse emissions.
“Approved [climate] finance for projects in the region’s most
vulnerable countries, particularly the small Pacific island states, has
been modest,”
reports the
Overseas Development Institute. “Fiji, Kiribati, Marshall Islands,
Samoa, Tonga, Tuvalu, Vanuatu cumulatively receive only 4 per cent (USD
$83 million) of the total amount approved in the Asia-Pacific region,
mostly for adaptation activities.” Funding cuts will just make the
shortfall more serious for countries like these.
The cuts can’t be justified by arguing that small island states have a
limited capacity to manage aid flows. Australian officials and
non-government organisations have been working with the Pacific Islands
Forum to establish systems to manage resources effectively and avoid
corruption and mismanagement. The Forum secretariat has completed a
major
study on climate funds in Nauru and published reports on better practice in the region, and last year Oxfam published a
report (on which I was the lead researcher) examining regional efforts to strengthen governance of climate adaptation finance.
Beyond this, many of the problems in accessing climate finance lie
with the practices of key donors and multilateral organisations.
Acknowledging this problem, a June 2012 World Bank
report pointed
out that “the institutional rigidity of donor organisations makes
cooperation and partnership more difficult… Joint programming of climate
change adaptation and disaster risk reduction activities by donors and
implementing agencies is not widespread.”
Nic Maclellan
"
Alongside China’s increasing diplomatic influence in the Pacific, a range of other players – from Cuba, Russia and Indonesia to unexpected actors like the United Arab Emirates – are complicating policy in the islands for the ANZUS allies. With larger countries like Papua New Guinea and Fiji taking more assertive regional and international roles, many Australians underestimate the rapidity of change in our region.
"
Since 2010, Australia’s fast-start funding for climate adaptation and
mitigation has been drawn from the aid budget. With the aid program
expanding in those years, and a bipartisan commitment to increase
official development assistance to 0.5 per cent of gross national income
by 2015, Pacific governments have been reluctant to criticise
Australian policy. (Island officials believe, for example, that climate
financing was supposed to be “new and additional” to resources allocated
for addressing poverty, health, education and women’s empowerment, but
they haven’t chosen to make an issue of the fact.)
The decision to abandon the 2015 aid target began under the Gillard
government. Labor foreign minister Bob Carr diverted $375 million of aid
funds in 2012–13 – funds for humanitarian and emergency responses,
women’s programs, agriculture and rural development – to pay for asylum
seeker processing. But the Abbott government is going further and
faster. Since coming to office, the Coalition has made three key changes
to the aid program: cutting $4.5 billion over four years by reversing
planned increases in the aid budget; abolishing the aid agency AusAID as
a statutory agency and merging its functions into the Department of
Foreign Affairs and Trade; and proposing cuts in the number of
experienced staff charged with making sure taxpayer funds are well
spent.
Under Kevin Rudd and Julia Gillard, Labor met its target of A$599 million of
fast-start climate finance
in 2010–13. But our fair share of the global target of US$100 billion
by 2020 is estimated at $2.4 billion a year, an amount that would
require a dramatic shift of attitude within the Coalition.
RECENT announcements about aid and climate finance
come at a time when Pacific regionalism is being transformed.
Australia’s long-held influence in the Pacific Islands Forum is being
eroded by new trends in aid, trade and investment. Pacific governments
are diversifying their political and economic links beyond the regional
groupings that dominated islands politics throughout the cold war years.
Today, Forum countries are showing growing interest in South–South
cooperation and engagement with new partners. Fiji’s coup leader Voreqe
Bainimarama has been a key player in this regional realignment.
Bainimarama has argued that Pacific nations need an independent grouping
outside the Pacific Islands Forum. “We must insist that our voice be
heard and heeded,” he has said. “We will dine at the table; we will not
be content to pick at the crumbs that remain on the table cloth after
the decisions are made and dinner is over.”
With Fiji suspended from Forum and Commonwealth activities since
2009, Bainimarama initiated the “Engaging with the Pacific” meetings in
2010 as a counterpoint to the Forum. In August 2013, these meetings
morphed into the Pacific Islands Development Forum, a new regional
summit which provides both a mechanism for debate about sustainable
development and an alternative meeting place for governments, business
and civil society. Over time, the new grouping may evolve into a venue
for inter-island dialogue without Forum members Australia and New
Zealand in the room.
These trends are also evident globally, reflecting the growing links
between the Forum’s island countries and Asian powers. As relations with
Canberra and Wellington have soured since the 2006 coup, Fiji has
joined the Non-Aligned Movement, established diplomatic relations with a
range of key developing nations, and opened new embassies in Brazil,
South Africa, Korea and Abu Dhabi.
In 2011, the Asia Group within the United Nations formally changed
its name to the Group of Asia and the Pacific Small Islands Developing
States. (With Tony Abbott stressing Australia’s links with Anglosphere
partners in Washington, Wellington and Ottawa, it’s worth remembering
that Australia is part of the UN Western European and Others Group,
rather than the Asia-Pacific group.)
The Bainimarama regime’s repression of trade unions, limits on
political parties and delays in constitutional and electoral reform have
not hampered Fiji’s regional and international influence. This year,
Fiji has served as chair of the G77 plus China grouping in the United
Nations, an unprecedented role for an islands nation. As Fiji’s
permanent representative to the United Nations, Peter Thomson, said in
May, “The G77 is the most appropriate international grouping for
countries such as Fiji, Kiribati and other PSIDS” – Pacific Small Island
Developing States – “to advance the development of their economic
agendas in the global context.”
Papua New Guinea is also playing a more independent role in regional
politics, reflecting its size as a dynamic, populous nation near the
borders of Asia. It is the only Pacific island nation in the
Asia-Pacific Economic Cooperation grouping, or APEC, and is seeking full
membership of the Association of Southeast Asian Nations. With major
reserves of timber, fisheries and minerals and new projects to export
oil and liquefied natural gas, Papua New Guinea has the potential to
influence neighbouring atoll nations.
Attending the Pacific Islands Forum in Majuro last September, PNG prime minister Peter O’Neill
said his
country will embark on a program of regional assistance with various
countries in the Pacific. From next year, the PNG government will
introduce a special budget allocation to fund a regional development
assistance program. In Majuro, O’Neill increased climate funds to the
Marshall Islands, Tuvalu and Kiribati, and pledged funds for Fiji’s 2014
elections.
Seizing the moment, China is using loans and investment to expand its
diplomatic influence in the region, erode longstanding island ties to
Taiwan and blunt US regional influence. According to China’s foreign
ministry, “developing friendly cooperation with the Pacific island
countries is part of the long-term strategy guideline of China’s
diplomacy” and “a role model for South–South cooperation.”
Meeting Pacific leaders in Guangzhou on 8 November, the Chinese
government announced a range of loans, grants and scholarships for
island nations. Vice-premier Wang Yang
announced that
China will provide US$1 billion in concessional loans for Pacific
island nations to support construction projects. (A loans facility will
especially benefit Papua New Guinea and Fiji, where major oil, gas and
seabed mining projects are proposed.) A further $1 billion in
non-concessional financing would be made available by the China
Development Bank.
At a time when Australia is abandoning increases in overseas
development aid, the Chinese government is stressing its diplomatic
commitment to the region: “China is a reliable and sincere friend and a
dependable cooperative partner of the Pacific island countries.” It will
build medical facilities and send medical teams to island nations, as
well as investing in green energy projects. Beijing will also provide
2000 scholarships over four years to add to the 3600 Pacific officials
and technicians who have already received training in China in recent
years.
Canberra’s fixation on the carbon tax and domestic climate policies,
meanwhile, is overshadowing these regional and international
developments. Although Australia remains the largest aid donor in the
islands region, the Coalition government is fundamentally transforming
our capacity to deliver development assistance in ways that address core
regional concerns over poverty, infrastructure, water and food
security. And as we move towards a global climate treaty and a summit to
replace the Millennium Development Goals in 2015, there are plenty of
other players who are stepping up to engage with our island neighbours. •
Nic Maclellan works as a journalist and researcher in the Pacific islands, and is a correspondent for Islands Business magazine.