Policy Updates

On May 14, 2024, Australian Treasurer Jim Chalmers delivered the annual Australian budget, which showed the ODA budget rising slightly to AUD5 billion (US$3.2 billion) for FY2024/25.

0.19% ODA/GNI was expected in 2024. Notably, Australia included the grant element of concessional infrastructure loans in the overall ODA figures for the first time.

Within the ODA program, expenditure on the Pacific was expected to rise to almost 40% of the total ODA budget.

AUD144 million (US$93 million) was estimated to be spent on climate and the environment. A new Climate Resilient Communities Fund in the Pacific is slated to receive AUD100 million (US$65 million) over 3 years. Environment spending included AUD200 million (US$129 million) for a Pacific Resilience Facility over 4 years. An Indonesia Environment Partnership will receive AUD200 million (US$129 million) over 4 years.

The gender equality, inclusion, and disability sectors are estimated to receive AUD102 million (US$66 million), including for implementation of expected new strategies for gender equality, LGBTQI+ rights, and disabilities. This also included funds for an Indo-Pacific Gender Equality Fund and a Southeast Asia-based GBV prevention program.

On May 9, 2024, Australian Foreign Minister Penny Wong announced that Australia would provide AUD19 million (US$12 million) to extend the Tuvalu Coastal Adaptation Project, bringing the total Australian contribution to the project to AUD38 million (US$24 million).

The coastal adaptation project is one aspect of the Falapeli Union. Under this union, Tuvalu and Australia have agreed to an annual pathway for Tuvalu citizens to study, live, and work in Australia in response to climate change. Tuvalu faces climate challenges, with sea level rises likely to affect the whole nation. Increasing cyclonic events and rising sea levels threaten the nine inhabited islands of Tuvalu, which have an average elevation of only 1.83 meters.

In addition to the Australian funding, the project is receiving assistance through the GCF. It was the first project in the Pacific to be awarded assistance through the GCF.

Investments through the project will include improving the national ability to manage coastal protection responses as well as implement physical measures, including seawalls and rock and concrete revetments.

On May 3, 2024, Australian Minister for International Development and the Pacific Pat Conroy announced a pledge of AUD492 million (US$317 million) to the Asian Development Funds’ 14^th pledging round, covering the period of 2025–2028.

The low-interest financing arm of the ADB focuses on grants to lower-income countries. Conroy emphasized the value of these grants to regional needs such as climate resilient hospitals and education facilities, as well is improving the systems that run them.

Conroy indicated Australia had worked with representatives from Kiribati and the Cook Islands to ensure that more funding would be received by the Pacific. An increase of over AUD500 million (US$323 million) was expected for the Pacific, compared to the previous replenishment.

Australia has also pursued arrangements to ensure access to finance for people in Afghanistan, Myanmar, and the Rohingya refugee population in Bangladesh, particularly women and girls. Australia urged the ADB and the World Bank to improve their procurement processes by avoiding approving artificially low-priced, poor-quality projects where higher prices were later demanded during implementation. Conroy encouraged tender processes to focus more strongly on quality and value for money and expressed concerned that low bid prices were discouraging a broader range of bidders from seeking work, particularly in the Pacific countries.

Australia is the second-largest contributor to the fund, behind Japan.

On April 25, 2024, World Malaria Day, Australian Minister of Foreign Affairs Penny Wong announced the new range of assistance to support communities and governments in the Southeast Asia-Pacific region to reduce malaria.

A new partnership with PATH is slated to receive AUD8 million (US$5 million). Australia’s Walter and Eliza Hall Institute of Medical Research and the Burnett Institute will work with PATH to develop new diagnostics for malaria.

In addition, Australia will provide AUD17 million (US$11 million) to continue its partnership with the Medicines for Malaria Venture. The funds will go to the development of new treatments and medicines for malaria suitable for children and for use in pregnancy.

Funding will also be provided to James Cook University in tropical North Queensland to assist Pacific countries to strengthen their control and surveillance of mosquito borne diseases including Zika, dengue and malaria.

On April 13, 2024, Australia has announced it will invest a further AUD17 million(US$11 million) to extend the BPP through 2028.

Through the BPP, Australia funded a partnership with organization Gold Standard and the International Rice Research Institute to assist sustainable rice project developers. The hub assisted scaling carbon market access within Vietnam and in global markets. It aims to significantly reduce methane emissions and also to provide possibilities for more income for smallholder farmers.

The BPP promotes development by partnering with academia, not-for-profit organizations and businesses to create jobs and increase incomes. It also aims to empower women.

The four countries covered by the program are Vietnam, Samoa, Sri Lanka, and Fiji.

On April 8, 2024, it was announced that the World Mosquito Program by Monash University in Victoria, Australia, to defeat dengue fever was successfully extended to Kiribati, Fiji, and Vanuatu following successful trials in Jogjakarta, Indonesia and in Medellín, Colombia.

The World Mosquito Program was funded in part by the Australian government, the Bill and Melinda Gates Foundation, and other donors. It involves introducing the Wolbachia bacteria to a local mosquito population. The bacteria inhibit the transfer of dengue virus from infected humans to a new host and is believed to provide more resistance to the Zika and Chikungunya viruses. The bacteria will then spread generationally to infect most mosquitoes.

In Southeast Asia, dengue fever particularly affects children and young adults.

Australia also announced that it would provide AUD3 million (US$2 million) in assistance to combat the spread of dengue in Laos.

On April 7, 2024, Foreign Affairs Minister Penny Wong announced AUD45.5 million (US30 million ) for the improvement of health workforce skills and improve disease response and surveillance.

In total, six initiatives were announced to improve health systems in Southeast Asia and the Pacific, with a focus on disease surveillance and response, including AMR. The initiatives also included a focus on supporting individuals with disabilities.

Providers of the new programs included a range of universities and expert organizations in Australia and abroad. The funding for the initiative was part of the Australian Government’s Partnerships for a Healthy Region initiative.

On March 26, 2024, DFAT listed guidance on good practice in assessing the gender equality outcome of activities, including the guideline that all Australian development assistance investments over AUD3 million (US$2 million) have to include a statement of gender equality outcome.

The guidelines use the OECD’s Development Assistance Committee's gender equality policy marker to determine if the investment targets gender equality as a significant or primary objective. Guidance also covered gender mainstreaming, climate change, and disability implications.

The guidelines also included recommendations for drafting and designing for better outcomes from projects in gender equality.

On March 26, 2024, according to Australian Minister for International Development and the Pacific Pat Conroy, Tuvalu’s new government has confirmed it would proceed with the Falepili Union treaty.

This treaty enables 280 people to migrate to Australia from Tuvalu every year. It also protects Tuvalu’s statehood and respects its sovereignty. In turn, the agreement would obligate Australia to provide for Tuvalu’s national security and potentially allow an Australian a veto over other security arrangements.

Tuvalu has a population of about 11,000 people, located on 9 islands in the Pacific. Increasing flooding has been reported by Australian Broadcasting Corporation due to rising water levels.

On March 25, 2024, the forthcoming World Health Summit in Melbourne released its final detailed program.

The forum is slated to be hosted by Monash University and will focus on health issues across the Pacific and Southeast Asia. The summit will run from April 22 to 24, 2024, at the Melbourne Convention and Exhibition Centre.

A range of international and Australian speakers are listed for the three parallel sessions being held each day at the forum. Topics include drug policy, future proofing the health workforce and strengthening health care financing in the Asia-Pacific.

Speakers include Jed Carney, Australia’s Assistant Minister for Health and Aged Care, and Helen Clark, formerly Prime Minister of New Zealand and head of the UNDP.