Climate fund top-up for Australia's Pacific neighbours

Ben McKay Published January 27, 2026 at 7.35am (AWST)

The federal government has announced a top-up of its primary Pacific climate and infrastructure fund, committing another $550 million.

The Australian Infrastructure Financing Facility for the Pacific (AIFFP) supports projects as varied as undersea cables, renewable energy in remote regions, and fresh water provision.

It aims to partner with businesses and other governments or other funds to provide grant and loan funding to the underdeveloped region.

Foreign Minister Penny Wong said the fund backs Pacific-led climate solutions.

"At a time of major global uncertainty, Australia's additional $550 million investment will deliver further critical infrastructure projects, with a particular focus on digital infrastructure development," she said.

The funding was announced alongside a meeting of the Pacific Islands Forum political leadership group, the PIF troika, in Brisbane.

The troika consists of the previous, current and future PIF chairs: Solomon Islands Prime Minister Jeremiah Manele, Tonga Prime Minister Lord Fatafehi Fakafanua and Palau President Surangel Whipps Jr.

They met in the Queensland capital alongside Senator Wong and Climate Change Minister Chris Bowen, and PIF secretary general Baron Waqa, of Nauru.

On Lord Fakafanua's first visit to Australia since his election in December, the federal government also plans to sign a renewable energy and climate agreement with Tonga.

The Pacific Islands Forum leaders' summit in Honiara in September controversially excluded bigger powers outside the region.

Mr Whipps Jr has announced his intention to invite delegates from China, the US, Japan and elsewhere when his Micronesian nation hosts leaders later in 2026.

Australian Associated Press

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