Policy Updates

Each week, Donor Tracker's team of country-based experts bring you the most important policy and funding news across issue areas in the form of Policy Updates.

EIB and European Commission sign new agrreement to guarantee US$28.8 billion for Global Gateway investments

May 10, 2022 | EUI, Climate, Education, Global Health | Share this update

The European Investment Bank (EIB) and the European Commission signed a new guarantee agreement to support €26.7 billion (US$28.8 billion) in EIB lending for Global Gateway investments over the next seven years.

The guarantee will support investments in the green and digital transitions, health, and education in EU partner countries as a part of the EU’s Global Gateway initiative. More than two-thirds of the guarantee cover will be targeted at investments in enlargement and neighborhood countries, including financing for Ukraine's post-war reconstruction. The rest will be targeted toward partner countries in sub-Saharan Africa, Asia, the Pacific, Latin America, and the Caribbean.

The guarantee agreement is housed within the framework of the new European Fund for Sustainable Development Plus ("EFSD+"), a part of the EU’s development instrument for 2021-2027, the Neighborhood, Development, and International Cooperation Instrument – Global Europe (NDICI – Global Europe).

The EFSD+ will provide guarantee cover of €40 billion (US$43.2 billion) total, including the €26.7 billion (US$28.8 billion) reserved for the EIB. The rest of the €13 billion (US$14 billion) in guarantee cover will be available to eligible international financial institutions (including the EIB) under the EFSD+ open architecture.

Press release - European Commission

Press release - EIB

Press release - European CommissionPress release - EIB

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USAID releases new disability policy

October 31, 2024 | US | Share this update

On October 31, 2024, USAID released a new disability policy] 2024 Nothing Without Us: USAID Disability Policy that represents a comprehensive rewrite of the 1997 USAID disability policy.

USAID Administrator Samantha Power noted how the framing of disability issues has changed since the original policy was released, moving from one of dependence and charity to one in which society should allow full inclusion of everyone. There are more than 1.3 billion people globally living with disabilities, and they are frequently affected disproportionately by issues such as hunger, climate change, disease, and conflict.

The new USAID policy will address disabilities in all of its work. The disability framework will be updated to remove societal barriers that bar inclusion. It will promote inclusion in its programming and activities. People with disabilities will also be included in all phases of the programming cycle and innovative, promising approaches will be elevated throughout USAID's programs.

Press release - USAID

Bond responds to UK budget

October 31, 2024 | UK, Climate | Share this update

On October 31, 2024, Bond, the UK network for organizations working in international development, outlined their disappointment with the Chancellor's budget announcement.

The Bond blog post outlines that the government has introduced new cuts to the UK assistance program and pushed off returning the UK ODA budget to 0.7% of GNI indefinitely.

Bond's analysis notes that UK ODA will drop sharply from GBP15.3billion (US$19.8 billion) or 0.58% of GNI in 2023, to GBP3.7 billion (US$4.8 billion), 0.5% of GNI in 2024, with a slight increase to GBP14.3 billion (US$18.5 billion) in 2025 for a total of 0.5% of the GNI.

Bond noted that there was a commitment to bring asylum costs down, including by ending expensive hotel accommodation, but no tangible commitment to reforming the current approach of using UK ODA to cover the costs.

Bond also note that there are already pressures on the UK aid budget with multilateral pledge commitments and climate commitments that need to be made including for the IDA and for the UK's ICF.

Press release - More cuts to the UK aid budget under the new government’s first Autumn Budget

US development experts provide recommendations for next administration

October 31, 2024 | US, Global Health, Climate, Agriculture | Share this update

On October 31, 2024, a joint event by the CGD and the MFAN saw US development experts recommend priorities and policies for the next US administration. The discussion was framed by a set of detailed recommendations released by MFAN.

The document, Building on a Legacy of Progress: Opportunities to Reform U.S. Foreign Assistance, covers a range of issues, including improved coordination with other national and global partners, creating a stronger path for country partners to transition to self-reliance, catalyzing innovation and strategic risk taking, and elevating transparency and evidence for better accountability.

The event included remarks by two former USAID Administrators, Mark Green and Gayle Smith, followed by a panel of senior former US government officials who reflected on their own experience, the need for a stronger US development experts to recommend priorities and policies for development approaches that meet the times, and their priorities for the future.

Report - MFANPress release - MFANSpeech - Center for Global Development

KfW study finds that German ODA supports German exports

October 30, 2024 | | Share this update

On October 30, 2024, a new study by KfW found that German development funding increases German wealth and jobs by supporting exports in a study published following severe cuts to the German development funding and repeated criticism levelled at ODA by several politicians and media outlets.

The study finds that every Euro invested in development cooperation increases German exports by EUR0.36 (US$0.39). It has led to an annual export surplus of EUR7.8 billion (US$8.4 billion) between 2013 and 2023 and created 139,000 German jobs. The effect is explained by two main mechanisms. First, development fundings increases income in recipient countries, expanding their demand and importants. Second, development cooperation leads to network effects, whereby 'made in Germany' goods are increasingly demanded by partner countries.

The study was published against the background of German ODA cut by more EUR900 million (US$1 billion) in the 2025 budget, and a public debate that is increasingly critical of development funding.

News article - KfW Studie (in German)

Canada announces US$45 million for global biodiversity, Indigenous-led action

October 29, 2024 | Canada, Gender Equality, Climate | Share this update

On October 29, 2024, Canada’s Minister of International Development Ahmed Hussen attended COP16 where he announced CA$62 million (nearly CA$45 million) for global biodiversity and Indigenous empowerment, with a particular focus on Latin America.

The funding includes:

  • CAD20 million (US$14 million) to Conservation International for the Critical Ecosystem Partnership Fund to advance gender equality by strengthening leadership skills among women conservationists and enhance locally driven conservation in key biodiversity areas in the Cerrado in Brazil, countries in the Indo-Burma region, and countries in the Tropical Andes;
  • Nearly CAD13 million (US$9 million) to the UNDP Biodiversity Ecosystem Restoration for the Community Resilience in the Chittagong Hill Tracts in Bangladesh project;
  • Nearly CAD10 million (US$7 million) to the WFP's Enhancing Indigenous Peoples’ Resilience to Climate Change in Colombia project;
  • CAD7 million (US$5 million) to the IUCN - Podong Indigenous Peoples Initiative to help Indigenous people build their capacity to implement gender-responsive biodiversity conservation actions in Guatemala, Nepal, Panama, and Tanzania;
  • CAD5 million (nearly US$4 million) to Fisheries and Oceans Canada for the Supporting the Protection of Marine Biodiversity Within the Eastern Tropical Pacific Ocean project, focused in Colombia, Costa Rica, Ecuador, Panama, and Peru;
  • CA$5 million (nearly US$4 million) for WildAid’s Strengthening Marine Law Enforcement in the Eastern Tropical Pacific Ocean project, to help improve the protection and sustainable use of marine ecosystems in Colombia, Costa Rica, Ecuador, Mexico, Panama, and Peru; and
  • CA$3 million (nearly US$2 million) to the UN Environment Program’s Accelerating Systemic Change for Gender Equality and Biodiversity Conservation Through the National Biodiversity Strategies and Actions Plans Accelerator Partnership, which will support action in Antigua and Barbuda, Comoros, Costa Rica, Eswatini, Tajikistan, Thailand, and Togo.
Press release - Global Affairs CanadaPress release - Global Affairs Canada

Norway commits US$14 million to the Global Biodiversity Framework Fund at COP 16

October 29, 2024 | Norway, Climate | Share this update

On October 29, 2024, Norway announced a contribution of approximately NOK150 million (US$14 million) to the GBFF, an international fund aimed at supporting countries in protecting vulnerable ecosystems.

These funds were confirmed by Norway’s Minister of Climate and Environment, Tore Sandvik, during the COP 16 in Cali, Colombia.

The GBFF was initially proposed during the UN biodiversity summit in Montreal two years ago, largely to address concerns raised by low-income countries. A key aim is to secure substantial funding for the preservation of global biodiversity, an effort to which Norway has been a significant contributor.

Norway’s Minister of International Development Anne Beathe Tvinnereim emphasized that small island states and other vulnerable nations often lack resources to effectively manage environmental challenges. The fund’s inclusive structure aims to mobilize public, private, and philanthropic capital, making it well-positioned to support these countries.

Press release - Norwegian Ministry of Foreign Affairs (in Norwegian)

Australian Foreign Minister condemns ban on UNWRA

October 29, 2024 | Australia, Security policy | Share this update

On October 29, 2024, Australia’s Foreign Affairs Minister Penny Wong has joined other countries in condemning Israel’s banning of the UNRWA.

The planned legislation seeks to ban the organization from conducting any form of activity or providing any service inside Israel, as well as deeming the UNRWA a terror organization. Wong emphasized the life saving work of UNWRA.

News article - 9 News

Netherlands temporarily postpones GDP and ODA link

October 29, 2024 | Netherlands | Share this update

On October 29, 2024, Dutch Foreign Trade and Development Assistance Minister Reinette Klever and Finance Minister Eelco Heinen, issued a letter to clarify the seeming suspension of the link between Dutch ODA and the GNI for the 2025 development budget.

The ministers state that, as outlined in the budget documents published on Budget Day on September 17, 2024, the current Dutch cabinet has opted to not adjust the ODA 2025 budget based on recent economic forecasts from the Dutch Economic Policy Agency. Adhering to these forecasts would have resulted in a cumulative increase of EUR2 billion (US$2.2 billion) in the ODA budget from 2024 to 2029.

This decision marks a departure from the previous practice of updating the ODA budget biannually in response to economic forecasts. However, the current cabinet does not formally abandon the linkage policy established in 1975; instead, it chooses not to apply it at this time, and leaves open the possibility of future adjustments.

The letter concludes with a commitment to review the budget in spring 2025.

Government document - Letter by Ministers for Finance and Foreign Trade and Development Assistance (in Dutch)

Japan grants US$5 million for women’s health, GBV response in Philippines

October 29, 2024 | Japan, Gender Equality | Share this update

On October 29, 2024, Japan and the Philippines signed an agreement in Manila to provide up to JPY724 million (US$5 million) for a new project addressing women’s health and GBV in the Bangsamoro Autonomous Region in Muslim Mindanao.

The project will establish facilities to protect women from GBV and create an obstetrics and gynecology clinic dedicated to violence response. Additionally, the project will provide vocational training and support women’s advocacy in the region.

Japan’s support aims to promote peace, stability, and development in Mindanao by improving access to medical care, preventing violence, and empowering women.

Press release - Ministry of Foreign Affairs of Japan

UK Foreign Secretary David Lammy gives statement on the Middle East

October 28, 2024 | UK, Nutritious Food Systems | Share this update

On October 28, 2024, UK Foreign Secretary David Lammy gave a statement to the House of Commons on the Middle East, outlining the current situation in Israel, Gaza, Iran, and Lebanon.

On Israel, Gaza, and Iran, he urged for de-escalation and for restrictions on humanitarian assistance to be lifted. Lammy said that the UK will be matching donations to the Disaster Emergency Committee’s Middle East Humanitarian Appeal, as well as restoring funding to UNRWA and urging Israel to ensure UNRWA's work continues.

Lammy reminded the House of Commons that at the start of October 2024, he announced GBP10 million (US$13 million) for the humanitarian crisis in Lebanon. The previous week, UK Minister for Development Anneliese Dodds announced further funding for the most vulnerable fleeing Lebanon and Syria.

Speech - Oral statement to Parliament Middle East: Foreign Secretary's statement, 28 October 2024

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US$ amounts are cited directly from sources; in the absence of an official conversion, they are calculated using the previous week's average of the US Federal Reserve's daily exchange rates.

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