Policy Updates

The European Commission announced EUR171 million (US$203 million) in support for infrastructure development and private sector growth across the Western Balkans on January 27, 2026, including projects in Albania, Bosnia and Herzegovina, Montenegro, and North Macedonia.

The support package includes contributions from the Instrument for Pre-accession Assistance, the Western Balkans Investment Framework bilateral donors, and the Reform and Growth Facility.

The package will allocate nearly EUR95 million (US$113 million) for infrastructure investments and technical assistance. The funding is expected to mobilize EUR263 million (US$313 million) in total investments across seven projects in digital, clean energy, human capital, transport, and environment sectors. Infrastructure projects include broadband infrastructure rollout in Albania, improvement of the electricity transmission system in North Macedonia, construction and energy-efficient renovation of education facilities in North Macedonia and Montenegro, electrification of the Durres-Tirana Railway line in Albania, and drinking water and wastewater treatment improvements in Bosnia and Herzegovina. Furthermore, technical assistance projects in Albania and Bosnia and Herzegovina are aimed at supporting future investments in energy, water, innovation, and research.

For the private sector, the package includes EUR76 million (US$91 million) for initiatives including the Western Balkans Forward Program, SME Go Green Program, the Western Balkans Opportunities by Non-traditional Debt pilot program, and strengthening public-private partnership capacities and governance in Bosnia and Herzegovina.

On January 23, 2026, Australia announced an additional AUD10 million (US$7 million) to the Ukraine Energy Support Fund to help restore electricity supply and maintain critical infrastructure.

The additional funding brought Australia's total contribution to the fund to AUD40 million (US$28 million). The fund has enabled Ukraine's energy sector to undertake urgent repairs and replace damaged equipment.

International Development Minister Anne Aly noted that the additional support would provide power for Ukrainian families during the harshest winter since the invasion began. Australia has provided more than AUD1.7 billion (US$1.2 billion) in military, humanitarian, economic, and energy assistance to Ukraine since February 2022.

The AECID presented the FEDES on January 23, 2026, a new instrument of Spanish financial cooperation aimed at mobilizing financing for sustainable development with Secretary of State for International Cooperation Eva Granados and AECID Director Antón Leis García emphasizing public-private partnerships and strategic alliances.

The AECID held a strategic dialogue session to raise the profile of the FEDES as a tool for mobilizing financing, strengthening coordination between public and private actors in sustainable financing, and generating collaboration opportunities between administrations, cooperation actors, private investors, civil society, and multilateral organizations. The event highlighted the FEDES' role in expanding geographical and sectoral reach to respond to global challenges including ecological transition, social inclusion, gender equality, and sustainable economic development.

Granados emphasized that the fund responds to a complex international context marked by growing financing needs and global challenges, representing Spain's commitment to modernizing its cooperation instruments. Leis García identified priorities for deploying the fund and building alliances with ICO, COFIDES, partner countries, multilateral organizations, the private sector, and civil society. The FEDES built on the FONPRODE's experience in mobilizing private capital for impact investment projects, making Spanish cooperation a benchmark within the EU, and established partnerships with multilateral development banks including the World Bank, the Inter-American Development Bank, and the IFAD.

On January 21, 2026,the European Commission announced its initial EUR1.9 billion (US$2.3 billion) humanitarian aid budget for 2026.

The initial EUR1.9 billion (US$2.3 billion) allocation includes:

• EUR557 million (US$663 million) to West and Central Africa, the Sahel, the Lake Chad basin, North-West Nigeria, Central Africa, Southern Africa, the Great Lakes region, and the Greater Horn of Africa;
• EUR448 million (US$533 million) to the Middle East, particularly Gaza, as well as Iraq, Yemen, Syria, and Lebanon;
• EUR145 million (US$173 million) to humanitarian needs in Ukraine and an additional EUR8 million (US$10 million) for humanitarian projects in Moldova;
• EUR126 million (US$150 million) to address humanitarian needs in Afghanistan, Pakistan, and Iran;
• EUR95 million (US$113 million) to Central and South America and the Caribbean;
• EUR73 million (US$87 million) to support Southeast Asia and the Pacific, particularly for the Myanmar crisis and its impact in Bangladesh;
• EUR15 million (US$17 million) to North Africa.

Additionally, more than EUR415 million (US$494 million) is reserved for responding to sudden-onset emergencies worldwide and maintaining a strategic supply chain.

On January 20, 2026 during a visit to Ukraine, Dutch State Secretary Aukje De Vries announced EUR23 million (US$27 million) in additional funding to support Ukraininan energy infrastructure.

The funding will support purchasing gas abroad, urgent repairs to power plants, and the supply of energy equipment from Dutch companies, including generators and cables. The allocation brought the total Dutch contribution to energy in Ukraine for 2026 to EUR133 million (US$156 million).

Following large-scale attacks on Ukraine's energy infrastructure, Ukrainian President Volodymyr Zelenskyy declared a state of emergency for the sector and residents of Kiev were urged to evacuate the city.

On January 16, 2026, German Development Minister Reem Alabali Radovan launched the School Meals Accelerator alongside WFP, the Rockefeller Foundation, and the Novo Nordisk Foundation. The partnership aims to provide 100 million children worldwide with access to healthy school meals and education by 2030.

The partnership will support school meal programs in Africa, Asia, Latin America, and the Caribbean. Moreover, it will provide national governments with knowledge, advice, and support to independently develop and finance school nutrition programs. The initiative will prioritize home-grown school meal programs, where schools source food directly from local producers to create jobs and income in local communities.

The partnership is embedded in a global support network of more than 100 countries and 150 partner organizations. The launch formed part of Germany's development policy commitment to global food security through the overarching BMZ initiative "Secure Nutrition – Strong for Life," which focuses on children's nutrition.

On January 13, 2026, Norway signed a two-year agreement with UNRWA , agreeing to provide NOK175 million (US$17 million) for core support in 2026 and 2027, plus an additional NOK100 million (US$10 million) for humanitarian work in 2026, totaling NOK275 million (US$27 million) in 2026.

Minister of International Development Åsmund Aukrust and State Secretary Andreas Motzfeldt Kravik signed the agreement in Oslo with UNRWA Commissioner-General Philippe Lazzarini. The Norwegian leaders reconfirmed Norway's support for Palestinian refugees, stating the agreement sends a clear signal of solidarity with them as well as support for the UN decision to extend UNRWA's mandate, noting that the organization has faced major political and financial challenges.

Spain's Minister of Foreign Affairs, European Union and Cooperation José Manuel Albares presented the country's first Feminist Cooperation Strategy on January 13, 2026, reinforcing Spain's commitment to gender equality and transforming power structures that perpetuate discrimination.

The strategy, which the Council of Ministers approved on December 9, 2025, prioritizes equality, empowerment, and the eradication of violence against women and girls from a cross-cutting perspective. Albares emphasized that the document represents a transformative roadmap at a crucial moment when the world faces serious setbacks in gender equality and access to sexual and reproductive rights. Secretary of State for International Cooperation Eva Granados called for international cooperation to be guided by a realistic and explicitly feminist program that accelerates the fight for equality and human rights.

The strategy rests on four pillars: rights, representation, resources, and partnerships. The pillars aim to advance the full and effective realization of the rights of women, adolescents, and girls globally, promote female participation in leadership positions, increase economic and human resources dedicated to combating gender inequalities, and develop strategic alliances to build a more just world. The presentation event at the Ministry headquarters included dialogues with representatives from international organizations, cooperation actors, civil society, and universities.

On January 12, 2026, German Development Minister Reem Alabali Radovan presented the government's development coorperation reform plans under the title "Shaping a Global Future Together" aiming to make German development cooperation more strategic, focused, and partnership-oriented

Within the strategy, development is framed as a pillar of Germany's security architecture, aligning it more closely with economic and security interests as well as geopolitical positioning vis-à-vis Russia and China. Hunger, poverty, and inequality remain key priorities and multilateral cooperation is strengthened within health, education and climate. Germany designated Africa as a focus continent, with regional priorities including stability and security in the Sahel and Horn of Africa; security, economic cooperation, energy, water, and reconstruction in MENA ; stability, reconstruction, and EU approximation in Eastern EU states; and climate, environment, water, economic cooperation, and democracy in Latin America and Asia. Financial support to LDCs. will continue through grants, while support to emerging economies will center more on loans, intended to increase accountability and ownership.

Moreover, Germany has announced to continue feminist development policy and adocate for reforms of the UN, OECD, and MDBs. To strengthen voices of LDCs, the establishment of a North-South Commission is planned, with further details yet to be defined.

Four overarching objectives form the strategic framework of the reforms: overcoming poverty, hunger, and inequalities while protecting rule of law and civil society; peace and stability through the promotion of sustainable security; enablement of economic cooperation for sustainable and equitable growth; and strengthening strategic alliances for global solutions and the multilateral system.

Implementation of these reforms will be accompanied by an adjustment to the organizational structure of BMZ. The reform concept will be reflected in the 2027 budget and the full reform process will be implemented by summer 2027.

Norwegian Minister of Foreign Affairs Espen Barth Eide announced an emergency support package of EUR340 million (US$395 million) to Ukraine on January 12, 2026, to support the energy sector and help the Ukrainian government maintain critical services.

Norway will channel the funding through established partners including the EBRD and the Energy Community, a European organization that seeks to extend the EU internal energy market to third countries such as Ukraine. In addition, funding will also be channeled through the World Bank's multi-donor trust fund for Ukraine and will be used to pay salaries for teachers, healthcare personnel, and public sector employees as well as pensions and social benefits.

Ukraine's budget deficit in 2025 was covered in part by a loan to be repaid with proceeds from immobilized Russian assets. The budget support provided by Norway to the Ukrainian government administration will help alleviate the situation until the loan mechanism agreed by EU member states in December 2025 is in place.