Anthony Albanese is under pressure at this week's Pacific Islands Forum, where he will come face-to-face with leaders from some of the countries most vulnerable to climate change.
Australia is one of the world's largest producers and exporters of gas and coal, two key fossil fuels that are blamed for global heating.
Australia has vowed to cut carbon emissions by 43 percent before 2030, but the Pacific Islands have called for a halt to new fossil fuel projects.
Vanuatu's Environment Minister Ralph Regenvanu said ahead of the meeting that Australia was the "main concern" for those wanting tougher climate action, and "the partner that will hold us back".
Albanese went on the defensive as leaders gathered Thursday, saying his country had made "substantial" commitments and was "well-positioned to make a difference for the world".
"There's a recognition that my government is committed to climate action and that we're playing a positive role... in the region and, indeed, around the globe," he told reporters outside the forum in Rarotonga, Cook Islands.
Palau President Surangel Whipps said Australia's climate policies had "vastly shifted", telling ABC Radio: "We need to encourage Australia to continue in that direction and not go backwards".
"With all the money that is gained by fossil fuels, Australia needs to take a leadership role in helping people decarbonise and promoting technologies that decarbonise," he added.
Canberra is looking for regional support to host a Pacific-focused COP climate change conference in 2026.
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