Anthony Albanese will cap his attendance at the Pacific Islands Forum in Palau by announcing a significant green energy investment for the host nation, even as he faces pointed questions about the limited number of world leaders set to attend next month's taxpayer-funded pre-COP climate summit in Fiji and Tuvalu.

Palau's Renewable Energy Upgrade

The Prime Minister is joining Palau's President, Surangel Whipps Junior, on Thursday to mark a milestone in the island nation's clean energy transition — the delivery of additional battery storage at Palau's solar farm, located at Ngatpang on Babeldaob.

The facility was originally financed through a $31.4 million package via the Australian Infrastructure Financing Facility for the Pacific. The latest upgrade represents a further $16.4 million investment aimed at modernising Palau's electricity grid as it moves away from fossil fuels.

The battery expansion will double the site's energy storage capacity, lift renewable energy to 25 per cent of Palau's total electricity generation, and eliminate the need for more than one million litres of diesel each year.

"Palau has shown strong leadership on climate action and sustainable development, and Australia is proud to support those efforts," Albanese said, adding that the investment reflects Australia's broader commitment to partnering with Pacific nations ahead of the Pre-COP Leaders' event.

Scrutiny Over Pre-COP 31 Conference Spending

The announcement comes as Albanese defends the federal government's decision to spend more than $20 million in public funds on next month's pre-COP climate preparatory meeting, which will be co-hosted by Fiji and Tuvalu. Taxpayer money is being directed towards broadcasting, accommodation and event management for the conference.

Confirmation that only five nations outside the Pacific are sending heads of government has fuelled criticism of the expenditure. Those confirmed are Antigua and Barbuda, Cape Verde, Thailand, the Maldives and East Timor. Germany, South Korea and Mexico will be represented at ministerial level rather than by their leaders.

At a press conference on the sidelines of the Pacific Islands Forum, the Prime Minister was pressed directly on whether the spending was justified given the low global turnout. He pushed back firmly, arguing that the framing was disrespectful to Pacific leaders.

"With respect, you are being so disrespectful to the Pacific Leaders who are here," Albanese said when the question was first put to him. When challenged further on the value to taxpayers, he argued Australia's engagement in the region carries a strategic dimension that goes well beyond event costs.

Albanese: Pacific Engagement Is a National Security Investment

"The entry fee for credibility in the Pacific, including on national security issues," Albanese said, pointing to the far greater financial and strategic costs that could arise if Australia were to disengage from the region. He noted that responding to threats or instability in the Pacific would dwarf the outlay on the pre-COP event.

The Prime Minister also stressed that global agencies — not just national leaders — would be present at the pre-COP gathering, and that not one Pacific leader at the forum had criticised Australia's support for bringing the event to the region. "In fact, it is the opposite," he said.

Australia's stepped-up Pacific diplomacy has been a consistent theme of the Albanese government, with the region seen as central to the country's broader foreign policy and security posture. For more on Australia's strategic moves in the Pacific, see our earlier coverage of Albanese's Pacific security push and the Fiji deal amid regional competition.

The Pre-COP 31 climate preparatory meeting is scheduled to take place in Fiji and Tuvalu next month, ahead of the main COP 31 summit later in the year.