Policy Updates

The Donor Tracker team regularly brings you the most important policy and funding news across issue areas in the form of Policy Updates.

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Swedish government evaluation committee proposes methods for optimizing ODA

October 1, 2020 | Sweden | Share this update

In a recent op-ed, two representatives of Expert Group for Aid Studies (EBA), a Swedish government committee tasked with independently evaluating Sweden's official development assistance (ODA), argued for making Swedish ODA more effective by implementing financial reforms in three separate areas.

Jan Pettersson and Númi Östlund from EBA argue that Swedish ODA is currently exposed to various financial risks that reduce its effectiveness. As per the instructions from the Swedish Central Bank, it is important to ensure that every ODA penny makes the maximum contribution to poverty reduction and "create the conditions for better living conditions for people living in poverty and oppression". Moreover, in order to strengthen public support for ODA, Sweden must be able to demonstrate the impact of ODA in its partner countries.

The two authors warned, "ODA is an activity with high risks. It is challenging to finance operations in environments where corruption is commonplace and there is a lack of basic infrastructure and functioning institutions. ODA is largely about contributing money and knowledge where other actors cannot operate. It is crucial that ODA do not fund things that can be financed in any other way, that ODA is."

Pettersson and Östlund argue that it is important to distinguish between risks: those associated with difficult working environments and those related to decision-making or donor systems. Financial risks fall in the latter category, and could, according to the authors, be addressed through three separate measures:

  • Abolishing the 1% of GNI target for ODA: This would reduce the volatility of Swedish ODA related to the uncertainty and volatility of GNI forecasts. It would also reduce the impact on ODA volatility related to other components of ODA such as costs related to asylum seekers. This effect was also noted by the National Audit Office in a recent review of Swedish ODA. In the 2020 Fall Amending Budget, presented in September, SEK 750 million (US$86 million) was reallocated to the traditional ODA budget from cost reductions related to asylum seekers, to be spent before the end of 2020. To increase the predictability of the ODA budget, the authors argue that “the government should agree on and communicate clear principles for how to deal with major changes in the budget. This applies in particular to changes within the financial year.”
  • Reducing currency risks for Swedish ODA: Swedish ODA is denominated in the Swedish Krona and the exchange rate against major currencies is often susceptible to large fluctuations, the effects of which currently have to be borne by implementing partners. Utilizing available financial instruments to hedge against the currency risks would reduce this burden on them. Again, this issue has been pointed out by the National Audit Office, but very few concrete actions have been taken yet by the Swedish government to address the problem. Pettersson and Östlund argue that the Swedish government should utilize both the expertise of the Swedish National Debt Office as well as public financial guarantees developed by the Swedish International Development Cooperation Agency (Sida) to effectively reduce the currency risks associated with Swedish ODA.
  • Reducing the role of the Swedish banking system: Following recent scandals of money laundering, Swedish banks have become increasingly restrictive when it comes to international financial transactions. These measures have also affected ODA transfers authorized by the Swedish government, both in terms of delivery as well as increasing costs related to bank charges and foreign exchange transactions. The authors argue that Sida should support Swedish banks with the relevant information required for the banks to enable these transactions in high-risk countries at lower costs.

Jan Pettersson is the Managing Director of the EBA Secretariat and Númi Östlund is a Program Manager at the EBA Secretariat.

Op-ed – Svenska Dagbladet (in Swedish)

Svenska Dagbladet (in Swedish) (in Swedish)

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Canada launches matching fund to support humanitarian response in Venezuela

June 30, 2026 | Canada | Share this update

On June 30, 2026, Canada launched a donation-matching fund for Venezuela earthquake relief, matching individual donations to the Canadian Red Cross and the Humanitarian Coalition, bringing Canada's total humanitarian funding in response to the disaster to CAD9 million (US$6.3 million.)


At an event in Ottawa, Randeep Sarai, Canadian Secretary of State for International Development, announced that Canada will match donations made by individuals to the Canadian Red Cross and the Humanitarian Coalition during the June 25–July 14 window, capped at CAD4 million (US$2.8 million.) Funds will support emergency health care, shelter, water, sanitation and hygiene, and other essential services for affected communities.


The matching fund builds on CAD5 million (US$3.5 million) in humanitarian assistance announced on June 25, 2026, by Secretary of State Sarai and Minister Anand, allocated as follows: CAD2 million (US$1.4 million) to WFP; CAD2 million (US$1.4 million) to PAHO; and CAD1 million (US$700,000) to IRC.


Working with the Canadian Red Cross, Canada has supported the delivery of more than 5,700 emergency relief items, including blankets, mosquito nets, kitchen sets, tarpaulins, and jerry cans, and is supporting deployment of emergency health services and medical supplies. Canada stated it will continue to coordinate with partners on the ground to assess evolving needs following the earthquakes in Venezuela.


Press release - Government of Canada

UK announces US$30 million for UNRWA

June 30, 2026 | UK | Share this update

On June 30, 2026, The UK announced GBP23 million (US$30 million) for UNRWA at a UN pledging conference in New York to support up to 5.9 million Palestine refugees and scale humanitarian assistance in Gaza and across the region.


British Foreign Secretary Yvette Cooper said the contribution would help maintain essential services for up to 5.9 million Palestine refugees and assist civilians in Gaza facing displacement, food insecurity, and limited access to basic services. The funding will support primary healthcare, basic education, social services, emergency food, and shelter, as UNRWA continues to experience severe restrictions and disruption to its operations.

Press release - UK Government

Norway increases support for Venezuela by US$2 million following earthquake

June 30, 2026 | Norway | Share this update

On June 30, 2026, Norway increased emergency assistance for Venezuela’s earthquake response by NOK20 million (US$2.0 million), split equally between UNHCR and IFRC to provide protection, shelter, health care, and other vital services.


The Ministry of Foreign Affairs said the allocation will support immediate relief following the June 24 earthquakes that struck northern Venezuela, where authorities declared a state of emergency and rescue operations continue.


Funding to the IFRC will prioritize clean water, health care, and other life-saving efforts. Support to UNHCR will establish centers offering assistance, information, psychosocial support, and basic household items for affected people.


Press release - Government of Norway (in Norwegian)

Germany launches South-North Commission on Development

June 30, 2026 | Germany | Share this update

On June 30, 2026, Germany launched a South‑North Commission on Development during the Hamburg Sustainability Conference, co‑chaired by former German Chancellor Olaf Scholz and former Costa Rican President Laura Chinchilla, to convene about twenty high‑level members and inform international reforms, with first interim outcomes in 2027 and a final report in 2028.


Co‑Chairs Olaf Scholz and Laura Chinchilla will convene a balanced group of around twenty representatives from politics, the private sector, academia, international organizations, and civil society to co‑develop solutions and reduce polarization, with agenda‑setting and decisions shared equally between South and North.


The mandate emphasizes strengthening multilateralism and new partnerships, contributing to a post‑2030 development agenda aligned to the UN 2030 Agenda, and informing future directions for Germany’s development policy. Regular meetings will be complemented by regional consultations in Africa, Europe, Latin America, and Asia.


The Commission will start work in mid‑2026, participate in major events including the Hamburg Sustainability Conference and the UN SDG Summit, present interim outcomes in 2027 in the context of the SDG Summit and the 50th anniversary of the first North‑South Commission, and deliver a detailed final report by end‑2028.

News article - The NationalNews article - Federal Ministry for Economic Cooperation and Development

Japan issues emergency US$15 million grant for Iran, Lebanon, and Palestine

June 26, 2026 | Japan | Share this update

On June 26, 2026, Japan announced an Emergency Grant of US$15 million for Iran, Lebanon, and Palestine (West Bank) to address deteriorating humanitarian conditions, alongside approximately JPY96 million (US$640,000) delivered via Japan Platform to Lebanon.


The Government of Japan said the US$15 million package will be implemented through international organizations, the ICRC, and the IFRC to support health, medical care, food, shelter/site management, and WASH.


Allocations include for Iran: UNHCR non-food items, WASH, and health (US$4 million); IFRC health and medical care (US$2.5 million); WFP food (US$2 million); and ICRC health and medical care (US$1.5 million). For Lebanon: ICRC health and medical care (US$1.5 million); WFP food (US$1 million); IOM site management, shelter, and non-food items (US$1 million); and UNICEF WASH (US$0.5 million). For Palestine (West Bank): UNICEF WASH (US$1 million).


Japan also noted that JPF has implemented about JPY96 million (US$640,000) in Lebanon through member NGOs—Association for Aid and Relief, Japan, PARCIC, and Campaign for Palestinian Children—providing food and daily necessities to internally displaced persons since March.


Press release - Ministry of Foreign Affairs Japan

Sweden increases contribution to the Global Fund's Eighth Replenishment by US$7 million

June 26, 2026 | Sweden, Global Health | Share this update

On June 26, 2026, Sweden increased its 2026 contribution to the Global Fund by SEK70 million (US$7 million), raising its total 2026 contribution from SEK683 million (US$68 million) to SEK753 million (US$75 million), an increase of more than 10%.


The Global Fund welcomed Sweden’s additional contribution toward the Eighth Replenishment, indicating the investment would expand access to prevention, treatment, and care for HIV, TB, and malaria with a focus on equity and reaching vulnerable populations, while strengthening health and community systems.


The Global Fund noted Sweden’s contribution will also bolster frontline health capacities in countries facing overlapping threats, including support for outbreak responses such as Ebola in the Democratic Republic of the Congo and Uganda, and sustain essential services where HIV, TB, and malaria remain leading causes of illness and death. the Global Fund also underscored that these investments strengthen global health security and pandemic preparedness as partner countries leverage Global Fund–supported systems

Press release - The Global Fund to Fight AIDS, Tuberculosis and Malaria

Sweden announces US$150 million to strengthen Ukraine's energy supply

June 25, 2026 | Sweden | Share this update

On June 25, 2026, Sweden announced SEK1.5 billion (US$150 million) to strengthen Ukraine’s energy supply ahead of winter, allocating funds to the Ukraine Energy Support Fund, the Swedish Civil Defence and Resilience Agency, and the IAEA for 2026.


The package comprises of SEK1.37 billion (US$137 million) for the Ukraine Energy Support Fund, channeled through Sida for urgent repairs and new energy production; SEK100 million (US$10 million) for the Swedish Civil Defence and Resilience Agency to provide staff, transport, procurement, and material such as generators and batteries; and SEK20 million (US$2 million) for the IAEA to enhance nuclear safety and security at Ukraine’s nuclear power plants. Sweden stated the support responded to extensive Russian attacks on Ukraine’s grid and power plants during the prior winter.

Press release - Government Offices of Sweden

European Commission distributes first tranche of US$102.6 billion Ukraine Support Loan for 2026-27

June 25, 2026 | EUI | Share this update

On June 25, 2026, the European Commission disbursed €3.2 billion (US$3.6 billion) in macro-financial assistance to Ukraine as the first tranche of the €90 billion (US$102.6 billion) Ukraine Support Loan for 2026–27, and said the first funds from a €6 billion (US$6.8 billion) defense package for drones would follow in the coming days.


At the Ukraine Recovery Conference in Brussels, European Commission President Ursula von der Leyen announced the first instalment of macro-financial assistance under the Ukraine Support Loan, which is designed to provide predictable and flexible budget support and defense-related financing through 2026–27. Since the start of Russia’s full-scale invasion, the EU and member states have provided more than €200 billion (US$228.0 billion) in combined support.


The €3.2 billion (US$3.6 billion) payment is the first of three MFA tranches foreseen in 2026, totaling €8.35 billion (US$9.5 billion), under a May 2026 Memorandum of Understanding that sets reform preconditions. Disbursements are tied to satisfactory progress on measures that mobilize domestic revenue, improve the sustainability and quality of public expenditure, and strengthen public financial management.


For this instalment, Ukraine fulfilled seven policy conditions, including extending the military levy; submitting draft legislation to tax income earned via digital platforms; removing VAT exemptions for low-value imported parcels; advancing public investment management reforms; aligning customs legislation more closely with the EU acquis; strengthening customs governance; and reinforcing the medium-term public financial management reform plan.


The EU stated that the MFA supports Ukraine’s macro-financial stability, essential state functions, and priority spending needs, including recovery and reconstruction, while Russia’s war continues to impose high economic and fiscal costs.


Press release - European Commission

Switzerland announces shifts to international cooperation strategy, strengthens humanitarian focus

June 24, 2026 | Switzerland | Share this update

On June 24, 2026, Switzerland’s Federal Council set parameters for the 2029–32 international cooperation strategy, keeping the budget near CHF2.4 billion (US$3.0 billion) per year while targeting savings of about CHF20 million (US$25 million) annually from 2027 and increasing humanitarian aid’s share from ~26% to ~40%.


At its meeting on June 24, 2026, the Federal Council directed the FDFA and EAER to draft a consultation document for the International Cooperation Strategy 2029–32 and adopted a clearer division of labor between the SDC and SECO.


Responsibilities will follow a “one country, one department” principle with tighter geographic and thematic focus: SDC will concentrate on low-income countries, primarily in Africa and parts of Asia, focusing on health, rule of law, climate, and migration, while SECO will work with middle-income countries, the EU, the Western Balkans, and selected Asian countries on private sector development, inclusive growth, sustainable value chains, and diversification.


Meanwhile, humanitarian aid will prioritize acute crises and emergency response, with targeted measures for protracted contexts. Support to multilaterals will follow criteria tied to strategy alignment, Switzerland’s influence, and host-country policy coherence.


Between 2027 and 2030, total savings of about CHF113 million (US$139 million) are expected, alongside a workforce reduction of roughly 100 posts. Operational responsibility for Switzerland’s cohesion contribution to selected EU member states will shift to EAER from 2028, with FDFA retaining foreign policy roles.


In response, a number of Swiss foundations including Fondation Botnar, the Jacobs Foundation, the Swiss Re Foundation, the Z Zurich Foundation, LGT Venture Philanthropy, and many others endorsed a joint statement expressing concern that a significant shift toward short-term crisis response and humanitarian aid may come at the expense of long-term development cooperation.


Notably, the statement underscored that humanitarian aid is indispensable but argued that sustained public investment in education, health, climate action, economic opportunity, and effective institutions is critical to reduce poverty and fragility and cannot be replaced by philanthropy. Finally, it has called on the Federal Council and Parliament to preserve Switzerland’s strengths in international cooperation and continue investing in approaches that promote peace, resilience, and sustainable development.


Press release - The Federal CouncilFondation Botnar

US announces more than US$1 billion for UNICEF and WFP

June 16, 2026 | US | Share this update

On June 16, 2026, the US announced more than US$1 billion in humanitarian and disaster response assistance to UNICEF and WFP, with more than US$218 million for UNICEF and more than US$800 million for WFP, through new global macro awards supporting assistance in more than 40 countries.


The US Department of State said the awards built on the December 2025 Humanitarian Reset memorandum of understanding with OCHA. The awards are the second and third in a new series of global State Department awards to vetted implementing organizations.


According to the State Department, UNICEF and WFP will use the funding to provide support across food, nutrition, health, child protection, logistics, and water and sanitation in countries with significant humanitarian needs, including Ethiopia, Myanmar, and Ukraine. The Department said the funding would also strengthen rapid disaster response by allowing implementers to pre-position resources, maintain staffing, and respond more quickly to sudden-onset crises and worsening needs in ongoing emergencies.


For more insights on donor commitments to multilaterals, explore our Multilateral Funding Tracker

Press release - US Department of State

Disclaimer

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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