Aid agencies want to see boost for Pacific support in Budget

By CathNews New Zealand

March 25th, 2025

Save the Children

Two dozen New Zealand NGOs have urged the Government to increase aid spending in the Pacific region at a time of large aid cutbacks by other nations.

An open letter from the Council for International Development (CID), co-signed by 22 agencies including Caritas Aotearoa New Zealand, has been sent to three ministries imploring them to increase spending on climate finance and foreign aid in the upcoming Budget.

The letter is addressed to Foreign Minister Winston Peters, Finance Minister Nicola Willis and Climate Change Minister Simon Watts. It calls for an increase in New Zealand’s funding to Pacific nations to help them adapt and prepare for climate change, as well as to pay for the damage caused by extreme weather. It also advocates for a general increase in the foreign aid budget to address the escalating challenges facing the Pacific.

The letter warns that, without sustained investment, Pacific nations will bear an unfair burden of the climate crisis they did not create.

Increased funding would support resilience, sustainable livelihoods and disaster preparedness. It would also help Pacific nations to avoid the burden of climate change debt, which is becoming an increasing issue across the region, with Samoa, Tonga and Fiji now spending more on climate-related debt than they do on health and education.

Currently, New Zealand invests an annual NZ$325 million on climate finance for Pacific countries. The letter requests that the Government increases this to at least NZ$558 million for 2025, and to NZ$1.7 billion by 2035.

The New Zealand Budget is due to be released on May 22.

The CID also urged that Aotearoa maintains its current strategy of delivering climate aid as grants, rather than loans.

“New Zealand has a proud history of standing with our Pacific neighbours. But as climate impacts intensify, our Government must step up its commitments to ensure Pacific communities have the resources they need to adapt and thrive,” said CID executive director Peter Rudd.

“We welcome the Government’s commitment to grant-based climate finance, which has set a world-leading example. Now, we urge ministers to strengthen this approach and ensure our contributions keep pace with the growing need.”

The call for increased investment in the aid sector comes as other major donor nations have begun to step back on aid commitments.

FULL STORY

CID Open Letter on Pacific Aid and Climate Finance (Council for International Development)