Prime Minister Jacinda Ardern has announced a new fund which will build greater climate resilience, and promote sustainable economic recovery for the Asia-Pacific region.

The announcement was made as part of the APEC Economic Leaders’ meeting today in Bangkok.

“New Zealand recognises the destabilising effect of climate change on our region and the need to work together to strengthen our collective response to the challenge,” Jacinda Ardern said.

“This new fund will specifically focus on building economic capability across the region to reduce emissions and improve adaptation, all while promoting economic growth.

“The impact of climate change is acutely felt in our Asia-Pacific region, and we know we need to work collectively, both at home and in our neighbourhood, to stop peoples’ livelihoods being further damaged.

“Studies show that, if the Asia-Pacific region does not mitigate carbon emissions, we will see an 18% loss in GDP within the century. It is critical that we move quickly to push forward with sustainable growth,” Jacinda Ardern said.

New Zealand’s $5.75 million contribution will be made across three years beginning in 2023 and is drawn from the increased climate finance commitment of $1.3 billion announced in October 2021.

“This new investment will help governments undertake economic reforms that support reduction of greenhouse gas emissions, incentivise businesses and consumers to promote environmentally friendly and sustainable behaviours, and build adaptation and climate resilience,” Jacinda Ardern said.

Administered by APEC, the fund will be accessible to APEC’s twenty-one members and is designed to help developing economies in particular. Other APEC members are also able to contribute funding.

The fund will be invested in capacity-building projects focused on climate change. For example, the fund could support Papua New Guinea to develop an emissions trading scheme; it could assist Indonesia in developing regulations to encourage greater private sector investment in renewable energy capacity; or it could help Viet Nam to green its public procurement system.

“New Zealand knows how complex these policy choices can be and will continue to advocate and support APEC economies to take climate action in the same way we did as Chair of APEC last year,” Jacinda Ardern said.

The APEC announcement comes a week after New Zealand announced dedicated funding of $20m for loss and damage at the COP27 meeting in Egypt.

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