Turbocharging Climate Action: new program to drive Indo-Pacific’s Net Zero Push

The Australian Government is launching an innovative new climate program to harness the power of private capital and our development assistance to turbocharge climate action in our region.

The Climate Catalyst Window, announced at COP29, will boost the efforts of climate-focused businesses across Southeast Asia, South Asia and the Pacific – one of the world’s most climate-vulnerable regions.

Backed by the proven success of Australian Development Investments (ADI), this $126 million initiative leverages concessional finance to de-risk transactions making climate solutions attractive to private investors.

ADI will use loans, equity and guarantees to attract private investment into projects that matter to our region. Funds recovered through the Window will be reinvested, ensuring the fund grows over time, and supports a pipeline of projects into the future.

Along with financial support, the initiative will provide projects with technical assistance to ensure rigorous impact measurement, promote gender equality, and enhance project bankability.

This initiative is another example of Australia’s commitment to accelerating the net-zero transition and showcases the impact of sustainable finance in mobilising private capital to address climate challenges across the Indo-Pacific.

For more information on Australia’s blended finance efforts, visit Australian Development Funds.

Quotes attributable to the Minister for Foreign Affairs, Penny Wong

“The Climate Catalyst Window will unlock the potential of climate-focused businesses to help drive the climate action our region has been asking for.

“We’re also ensuring we are getting maximum value for Australia’s development assistance in projects that matter to Australians and our region.

“A peaceful, stable, prosperous, and climate-resilient region makes us all safer.”

Quotes attributable to the Minister for International Development and the Pacific, Pat Conroy

“The Climate Catalyst Window is a targeted investment to support climate-focused small and medium enterprises in the Indo-Pacific, empowering them to innovate, grow, and contribute to the global net-zero transformation.”

“Through blended finance, ADI will mobilise greater private investment to address climate mitigation and adaptation needs across Southeast Asia, South Asia, and the Pacific.”