Policy Updates

On December 9, 2024, the EC initiated the 9^th edition of the Raw Materials Week, an event that brings together stakeholders from industry, administration, civil society, research and academia to discuss policies and initiatives in the field of raw materials.

Experts from various strategic sectors discussed how to foster domestic capacities, finance and derisk projects, stimulate research and innovation and improve critical raw materials circularity. The participants discussed the implementation of the Critical Raw Materials Act, which aims to bring a secure and sustainable supply of materials for European industry by using strategic partnerships to diversify supplies.

The High-Level Conference on Raw Materials will take place on December 11, 2024, and will be streamed online. EC Executive Vice-President for Prosperity and Industrial Strategy Stéphane Séjourné will explain his vision for the EU's raw materials policy. On December 12, the EC will discuss raw materials projects in the Minerals Security Partnership Forum, which is a platform for cooperation on critical raw materials for the global green and digital transitions.

The week includes specific sessions on investment opportunities in Canada, Greenland, Australia, Brazil, Kazakhstan, Uzbekistan, Norway, Zambia, the Democratic Republic of Congo, and South Africa.

On December 2, 2024, the Council of the EU endorsed 46 Global Gateway flagship projects for 2025, which focus on the areas of digital, climate and energy, transport, health, education, and research.

Every year, new flagship projects are selected and added to the Global Gateway flagships list which includes 218 initiatives from 2023-2024. The list serves as a strategic communication and visibility tool for the EU and its member states.

Out of 46 newly selected flagship projects:

• 25 projects focus on climate and energy, including investments in climate resilience for land and water use, sustainable agricultural practices in Africa, and boosting renewable energy including hydro, solar, and wind;
• Six projects focus on digital, for example boosting digital connectivity in the Pacific or the EU-AU space partnership;
• Four projects focus on education such as boosting skills, rebuilding schools, and supporting entrepreneurship in Africa, Asia, Ukraine, and the Middle East;
• Six projects focus on health, increasing sanitation and healthcare in Africa and Europe; and
• Five projects focus on increasing global transport links.

On July 18, 2024, the European Parliament endorsed Ursula von der Leyen for a second term as President of the European Commission through a secret ballot, where she received 401 votes, 41 votes above the 361 votes needed for a qualified majority.

Von der Leyen received 289 votes against, 15 abstentions, and 7 votes were invalid. The secret ballot suggests von der Leyen managed to garner support from a coalition of pro-European, democratic groups across the center-left and right. Experts noted that this could indicate that a centrist coalition is possible, though future policy decisions will need to be built on a case-by-case basis amidst ongoing polarization.

During the debate that preceded the vote, von der Leyen outlined her political priorities for the next five years. The main proposals related to EU global engagement included appointing a Commissioner for Enlargement and one for the Mediterranean, developing a new economic foreign policy through the Global Gateway, and focusing on strategic partnerships, particularly with Africa ahead of the EU-Africa Summit in 2025.

Von der Leyen emphasized the need for the EU to remain a leader in international climate negotiations and proposed new initiatives, such as a European Climate Adaptation Plan and a Clean Industrial Deal. Her agenda included a focus on security and defense, with plans to create a European Defense Union, appoint a new Commissioner for Defense, as well as developing a new European Migration and Asylum strategy and a Pact for the Mediterranean. Von der Leyen's focus on health has decreased since the pandemic, with a focus mainly on a Critical Medicines Act, an action plan for hospital cybersecurity, and a strategy to support medical countermeasures through HERA.

The focus of the EU's new seven-year budget will be on simplicity, flexibility, speed, and strategic priorities. It will streamline funding allocation, moving away from a program-based budget to a policy-based one. External action financing is expected to further align with EU interests. Von der Leyen also highlighted support for the introduction of new EU resources.

Von der Leyen's proposals reflected the current geopolitical landscape and internal EU dynamics, focusing on strengthening the Union’s resilience and strategic interests. Her agenda also proposed a significant increase in research and innovation spending, the establishment of new roles, such as a Commissioner for Equality and a Commissioner for Intergenerational Fairness, the set-up of a new European Competitiveness Fund, and policies addressing housing, youth, and agriculture.

On May 23-25, 2024, the G7 Ministers of Finance met at a summit in Stresa, Italy, where the ministers voiced support for contributions to the IDA, WHO, Gavi, and the Global Fund in the resulting communiqué.

The G7 ministers supported efforts towards a successful 21^st replenishment of the IDA by the end of 2024 through an ambitious policy and financing package. Notably, they did not give a concrete signal that the critical US$100 billion threshold requested by the World Bank will be crossed, nor any indication of the US$120 billion expected by African leaders.

The ministers reaffirmed their dedication to strengthening the governance and finance of the global health architecture and voiced support for refinancing processes of several GHIs, such as Gavi, the Vaccine Alliance, the WHO, and the Global Fund, and expressed support for the Pandemic Fund. The communiqué called on the donor community to coordinate efforts and increase investments in global health in line with their capacities to ensure sustainable funding and maximize the impact of available resources.

Following the summit, the C7 pointed out the G7's lack of ambition and financial commitment to international development, including climate adaptation. International civil society organizations criticized the lack of any reference to allocating SDRs to global solidarity.

On May 14-15, 2024, the C7 summit was held at the UN FAO headquarters in Rome, Italy, organized by the Italian Civil Society Coalition that led, coordinated, and moderated the C7 2024 process.

Approximately 400 global representatives took part in the event, as well as international decision-makers, including FAO Director-General Qu Dongyu, Italian G7 sherpa Ambassador Elisabetta Belloni, Cardinal, President of the Italian Episcopal Conference, Pope’s envoy for the Russian-Ukrainian conflict Matteo Maria Zuppi, and Director of the UN SDG Action Campaign Marina Ponti.

The official C7 communiqué that listed the international civil society recommendation to the G7’s Leaders around seven key issues was released at the event, which included:

• Economic justice and transformation;
• Climate, energy transformation, and environmental justice;
• Global health;
• Principled humanitarian assistance;
• Peace, common security, and nuclear disarmament;
• Human mobility and migration; and
• Food justice and food systems transformation.

On May 10, 2024, USAID joined the AU Commissioner and 14 other partners in a statement of support for the African Fertilizer and Soil Health Action Plan at an AU-led soil health summit.

The US also announced US$40 million for the Space in Place approach, which is meant to support farmers with geospatial data and knowledge to ensure the best use of fertilizer for more nutritious foods.

Others joining the statement included the ADB, Bill & Melinda Gates Foundation, France, the World Bank, France, Canada, the EU, Germany, the Netherlands, the Rockefeller Foundation, Germany, and the UK. Commitments included improved investment policies, more access to fertilizers, enhancing soil inputs and interventions, and building capacity for soil health and fertilizer management.

On April 17, 2024, the European Commission's Directorate-General for International Partnerships published the 6^th EU Aid for Trade Progress Report, finding that the bloc continues to be the largest provider of aid for trade at 42% of global 'aid for trade' in 2021.

At EUR18.6 billion (US$19.8 billion) EU 'aid for trade' decreased 26%, or EUR4.9 billion (US$5.2 billion), between 2020-2021, following downward trends among other donor organizations for the same year.

55% of spending in 2021 prioritized production capacity in partner countries, while trade-related infrastructure remained stable around 42% of funding. By region, 46% of spending supported partner countries in Africa, continuing an upward trend from 2014.

34% of EU 'aid for trade' in 2021 supported gender equality and WEE as a significant objective, but only 1% as a principal objective. 2021 volumes returned to just below pre-COVID-19 pandemic levels, at EUR6.6 billion (US$7 billion).

Agricultural 'aid for trade' has fluctuated since 2017. In 2021, support for agriculture decreased 37% from a high of EUR4.5 billion (US$4.8 billion) in 2020 and 23% from pre-pandemic levels.

The EU's climate-related 'aid for trade' decreased 15% in 2021 to EUR9.7 billion (US$10.3 billion), driven by decreases in funding for projects related to adaptation alone and both mitigation and adaptation. Funding for mitigation-related projects remained stable from 2019-2021.

On April 14, 2024, the C7 published a statement ahead of the G7 Foreign Ministers' Meeting in Capri from April 17-19, 2024, where the group called on the foreign ministers to take concrete action to promote human rights as well as the common interests of humanity and the planet.

The C7 advocated that the G7 ministers reaffirm their commitment to developing long-term peace-building strategies that address persistent structural challenges at the basis of conflicts, ensure food security even in fragile settings, and address a profound transformation of food systems. The group also called upon their governmental counterparts to ensure safe and regular migration channels and commit to protecting migrant rights.

On March 12, 2024, Commissioner for International Partnerships Jutta Urpilainen announced a battery of initiatives to support the EU - Cambodia relationship.

Two of these initiatives included Team Europe programs intended to mobilize EUR1.1 billion (US$1.1 billion) and EUR400 million (US$432 million) for green agriculture and factories, respectively. Within these initiatives, focuses included green energy and decent jobs.

Urpilainen also announced four new collaborations between the EU and Cambodia, worth EUR79 million (US$86 million), with sectoral foci including:

• Agriculture, specifically sustainable farming practices that avoid deforestation;
• Sustainable energy in the production of textiles and garments;
• Digital skills, STEM education, and research; and
• Economic and trade development, specifically addressing challenges specific to Cambodia and increasing competitiveness.

On March 6, 2024, the EU announced EUR228 million (US$236 million) in support for projects in Uganda during a high-level business meeting.

With a primary focus on business and economic development, the initiatives also touched on topics including housing, human rights, digital infrastructure, gender equality, and agriculture:

• EUR40 million (US$43 million) was provided for the "Investing in Young Women-Led Entrepreneurs Business in Africa," which was reported as an effort to increase women's economic empowerment in partners across SSA, though specific partner countries were not listed in the press release;
• EUR50 million (US$54 million) was loaned to Uganda with the aim of increasing youth and women's employment while increasing access to jobs in sustainability;
• The EIB announced an EUR25 million (US$27 million) loan for the development of SMEs and aimed for 50% of support to benefit women-led businesses;
• EUR5 million (US$5 million) was also allocated to build awareness and advocacy surrounding human rights abuses in business;
• The EIB loaned EUR25 million (US$27 million) for over 500 telecommunications towers to be built throughout Uganda, with the aim of increasing access to digital technologies;
• The EIB loaned EUR50 million (US$54 million) to the Centenary Rural Development Bank to support women entrepreneurs in small businesses; and
• EUR 12 million (US$13 million) was allocated to both the START Facility and the Agricultural Business Initiative in Uganda to support climate resilience and economic development among agrarian populations.