Man standing outside clearing land

The environment and climate change

Achieving environmental sustainability is a key theme of the Australian aid program, as well as one of the Millennium Development Goals (MDGs). Australia recognises that the poorest people are often the most vulnerable to the impacts of environmental degradation, and that climate change now threatens to worsen these problems and set back progress towards the Millennium Development Goals.

The challenge

While rapid economic growth in the developing world is essential in providing the necessary resources for poverty reduction, economic growth can also place pressure on natural systems. The health of these systems is particularly important to the rural poor as their wellbeing and livelihoods are heavily dependent on productive soil, forests, oceans and fresh water. Without protecting natural systems, there is a risk that livelihood gains made through economic growth and development will not be sustainable over the long term.

The pressures on natural systems are also predicted to intensify with climate change. The associated risks should be considered a development challenge as well as an environmental issue. Climate change will potentially impact on all major development sectors, through potential for increased vulnerability of communities to disasters, increased spread of disease, lowered agricultural productivity and increased cost of infrastructure provision. Moreover, the countries most vulnerable to climate change are often the least able to manage the challenge of adapting.

Some Asian developing countries are, or will become, substantial sources of greenhouse gas emissions through energy generation, transport, industrial activity and, importantly, deforestation.

Deforestation, particularly in tropical developing countries, is estimated to cause 20 per cent of global greenhouse gas emissions. Therefore, reducing deforestation and forest degradation is potentially a highly cost–effective way of reducing greenhouse gas emissions. The United Nations Climate Change Conference in Bali in December 2007 indicated support for demonstration activities to Reduce Emissions from Deforestation and Forest Degradation in Developing Countries (REDD+), with a view to possible incorporation of REDD+ into a future international climate change agreement.

Australia's international development assistance program can play a significant role in helping countries sustain and build upon the economic development gains already achieved. This can be done by ensuring that decision–makers are supported in their efforts to mitigate the environmental, social and economic impacts of their development choices, and to adapt to environmental changes.

Further information

For further information on climate change and environment in the aid program contact infoausaid@ausaid.gov.au.

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Last reviewed: 15 December, 2011