Policy Updates

On November 11, 2024, the CDG, examined the GBP1.5 billion (US$1.9 billion) UK ODA cuts within the context of the new government’s commitments, and explored what might be expected in the coming period.

In the new budget, total UK ODA, including the IDRCs, will drop from GBP15.3 billion (US$19.8 billion) in 2023, to GBP13.9 billion (US$18 billion) in 2024, and then rise to GBP14.3 billion (US$18.5 billion) in 2025.

The CDG noted that the UK needs to meet its ICF target which forms the UK’s commitment to international finance under the Paris Agreement. Given so much of UK ODA is made up of IDRCs, a significant proportion of what remains needs to be redistributed into climate finance, impacting emerging UK development policy priorities.

The UK is conducting reviews of their development policy led by Nemat (Minouche) Shafik, formerly Permanent Secretary at DFID, who has also held senior roles at the Bank of England, World Bank and IMF, London School of Economics, and Columbia University.

On November 11, 2024, the JICA announced a new climate strategy for agricultural and rural development cooperation to address the pressing need for climate resilience and sustainable practices, particularly in developing nations facing heightened climate risks.

Emphasizing human security, this strategy aligns with Japan’s commitments under the Paris Agreement and integrates both adaptation and mitigation measures across JICA’s agricultural and rural projects to enhance food security, bolster livelihoods, and strengthen resilience against climate impacts.

The strategy identifies six core actions:

• Developing climate impact assessment tools;
• Proposing customized adaptation approaches;
• Reviewing current projects for climate impacts;
• Incorporating resilience in new projects;
• Promoting mitigation techniques; and
• Advancing knowledge-sharing efforts.

Key focal areas include:

• Enhancing water resource efficiency;
• Promoting sustainable farming; and
• Supporting innovations to reduce greenhouse gas emissions, especially in regions heavily affected by climate change.

Through this framework, JICA aims to create more sustainable agriculture systems by 2030. The strategy fosters cross-sector collaboration, data-informed assessments, and practical climate solutions to build resilient rural economies. Japan is also committed to sharing insights and findings internationally, thus contributing to global efforts toward climate-smart agriculture and rural development.

On November 8, 2024, Minister for Foreign Affairs Penny Wong has announced AUD10 million (US$7 million) in financing for an Innovative Indo-Pacific NGO Accelerator.

The funds would be provided to assist NGOs in increasing the scale of their initiatives to promote climate resilience and gender equality. It would have a particular focus on the Pacific.

Wong noted that NGOs have been leaders in areas such as micro-finance, impact investment, and impact bonds. Wong said the Accelerator would assist NGOs in expanding their impact by overcoming structural barriers.

Australia has taken an increasing role in assisting blended finance activities in the past two years.

On November 7, 2024, Norwegian Minister of International Development Anne Beathe Tvinnereim prepared to attend the 2024 climate summit, where climate finance and food security will be key topics.

She emphasized the importance of the summit as an opportunity to reinforce global climate efforts, noting that Norway’s work on climate and food security is closely linked. Tvinnereim believes that strengthening international climate cooperation is essential to ensuring future food supplies.

Tvinnereim plans to participate in events focused on food security and climate adaptation, including a meeting of the Alliance of Champions for transforming food systems, which Norway co-chairs with Brazil and Sierra Leone. Norway’s goal is to combat climate change without endangering food production and to boost climate financing for sustainable food systems through both adaptation and emissions reduction efforts.

On November 7, 2024, Canada announced a total of CAD231 million (US$166 million) to support a series of flagship initiatives for peace and security in Africa, as well as building stronger and mutually beneficial partnerships by supporting economic empowerment, climate change action, and gender equality.

The funding was announced by Canada’s Minister of Foreign Affairs, Minister of International Development, and Minister of International Trade and Economic Development on the margins of the Canada-African Union Commission High-Level Dialogue in Toronto, Ontario.

Canada’s Minister of International Development Ahmed Hussen announced nearly CAD177 million (US$127 million) in funding to advance women’s and youth’s economic and social empowerment, support climate-change adaptation, and skills enhancement through the following projects:

• Supporting the UPSNJP - CAD75 million (US$54 million);
• Leading on funding the Renewed Women's Voice and Leadership in Crisis- and Conflict-affected Contexts - CAD25 million (US$18 million);
• Advancing women and youth’s economic and social empowerment in Senegal - CAD20 million (US$14 million);
• Backing the Climate Resilience through Empowering Women project - CAD15 million (US$11 million);
• Providing resources to AWBG - CAD14 million (US$10 million);
• Contributing to the United Nations Multi-Donor Trust Fund for Kenya - CAD10 million (US$7 million);
• Contributing to FIRST - CAD10 million (US$7 million);
• Strengthening the South Africa Skills Enhancement Program - CAD5 million (US$4 million); and
• Supporting Morocco's WESE - CAD2 million (US$1 million).

Hussen also announced initiatives to strengthening partnership to reduce poverty, provide humanitarian assistance, support economic development, and empowering youth by:

• Creating a new Africa trade and development program at GAC which will support development initiatives that contribute to food security, job creation, gender equality, and environmental sustainability; and
• Enhancing and expanding education and skills training programming to harness economic empowerment.

Additionally, Canada’s Minister of Foreign Affairs Mélanie Joly announced CAD54 million (US$39 million) in funding for flagship initiatives and projects in the following key focus areas: peace and security, good governance, strengthened people-to-people ties, and enhancing Canada’s diplomatic footprint. This includes by:

• Supporting youth and women in peace processes;
• Supporting community-led conflict-prevention in Darfur and civilian-led political process throughout Sudan;
• Investing in counterterrorism capacity and threat resilience;
• Working to prevent violent extremism and support SGBV;
• Naming a Special Envoy for Africa and for the Sahel; and
• Formalizing Canada’s relationship with the AU Commission through a new memorandum of understanding.

On November 6, 2024, following extensive public consultation, the advisory board to the MRFF, and Australian government fund that has dispersed over AUD650 million (US$438 million) annually on health research funding, published its medical research and innovation priorities for 2024-2026.

The MRFF's priorities have mostly focused upon domestic health research, however, one of the announced new priority areas are global health and health security. Overall, there were 12 priority areas.

The global health priority included a focus on zoonotic diseases, pandemics and AMR. The fund should align with international capabilities and efforts. Its aim would be to improve health system resilience in the face of emerging threats to health security. MRFF investments would allow Australia to provide leadership and expertise in the face of public health events that threatened health across borders between countries.

Areas of interest would include preparedness, surveillance and countermeasures focused on both emerging and already identified health threats. The strategy indicated this would be best supported through collaborative multidisciplinary research, including on the impact of AMR on human health.

On November 6, 2024, Federica Diamanti was appointed as the new Associate Vice President for External Relations at the IFAD, the world’s fund for transforming agriculture, rural economies, and food systems.

Diamanti is responsible for the fund’s public and political advocacy, including global policy engagement, partnerships, and strategic communications. She also oversees the IFAD replenishment process, whereby Members agree on priorities and targets for each three-year replenishment period.

Diamanti is an international finance and multilateral diplomacy expert with extensive experience in important forums such as the G7, the G20, and MDBs, and subsidized funds. Before joining IFAD, she was Director of Multilateral Banks and Funds at the Italian Ministry of Economy and Finance.

In the past, Diamanti held the position of Executive Director for Italy, the UK, and the Netherlands at the AfDB. She distinguished herself by leading the design and implementation of the capital reform of multilateral banks within the G20, which made significant additional financial resources available for developing countries.

On November 6, 2024, Canada’s Minister of International Development Ahmed Hussen announced CAD10 million (US$7 million) to support industry-relevant skills training for young people in Egypt’s agribusiness sector.

The funding will support CICan to work with local partners and the Egyptian Ministry of Education and Technical Education to support over 20,000 students with technical training, internships, and career counselling. The project will set up an innovative learning hub to help youth gain climate-smart skills and join the agribusiness industry.

On November 6, 2024, the results of the 2024 US Presidential Election were announced with former US President Donald Trump (Republican) as the winner, leaving many development experts to speculate on how the upcoming Trump administration will impact US development policies and funding.

From his previous term in 2016-2020, Trump was not supportive of the multilateral system, including the UN. Many of his previous decisions were reversed by the Biden administration, such as budget cuts to USAID, and will likely be reinstated upon his return to office.

Trump's presidency could impact Global Health in particular by once again withdrawing from the WHO, reinstating the Global Gag, and cutting funding for UNFPA. Climate funding, an already a contentious issue on Capitol Hill, faces an uncertain future.

Localization is one of the areas where there may be bipartisan agreement. Faith-based organizations and private sector partners working with the DFC are also groups that may find favor in the next administration.

On November 6, 2024, Germany's 'traffic light' coalition, consisting of SPD, Greens, and FPD, fell apart after German Chancellor Olaf Scholz fired Finance Minister Christian Lindner and announced an impending parliamentary vote of confidence.

The coalition broke down following prolonged conflicts about economic policies and the budget, with the Lindner's pro-business FPD proposing drastically different approaches from those supported by Scholz's SPD and the Greens. Scholz announced a vote of confidence for the coming months, followed by an early election between January-March 2025. Until then, a minority government consisting of SPD and Greens will remain in place.

The budget for 2025, originally scheduled for confirmation on November 14, 2024, will likely not be passed until a new government is in place. A probable outcome is that of prolonged provisional budgeting. While the government will be able to finance its legal obligations, administrative costs, and continue certain necessary expenditures, it will not be able to finance new projects. This will likely impact funding for development and humanitarian assistance.

Passing of any measures will depend on the cooperation of the opposition party CDU/CSU (or less likely the FPD). They might agree to certain measures yet are unlikely to support the budget for 2025. They are also currently not expected to support a reform of the constitutional debt brake, which will also drastically reduce the fiscal leeway of the next government.