Davey said from an international climate conference in Poland the funds would help more than 860,000 people adapt to the impact of climate change.
"Our climate change challenge is both to help prevent further damaging climate change, but also to help [protect] the poorest people from the effects of climate change that is already happening," he said in a statement. "This funding [is meant to] help people adapt to our harsher climate conditions."
Davey said the funding for more than 25 projects in the world's least developed countries would help communities improve irrigation, flood management and weather forecasting systems.
On coal, Davey said his government would join the United States to ensure financial support for coal-fired power plants in the world's poorest countries is available only in circumstances when no other feasible alternative exists.
The International Energy Agency said global coal demand needs to fall by 45 percent from its 2009 levels by 2050 to keep climate change in check.
British advocacy group Friends of Earth said Tuesday the international community needs to "take urgent action" to usher in a low-carbon future.