Policy Updates

On October 25, 2024, Minister for Climate and Green Growth Sophie Hermans shared the Netherlands’ priorities and goals for the upcoming COP29 climate conference in Azerbaijan.

Key objectives include:

• A new and inclusive international climate finance target that involves more contributors beyond traditionally HICs, aiming to scale finance for both adaptation and mitigation in LICs;
• Advancing carbon market regulations with a robust framework under Article 6 of the Paris Climate Agreement to ensure quality and transparency, and prevent double counting of international carbon emissions;
• Advocate for new climate adaptation indicators to help countries track progress, with a focus on integrating water management expertise in global strategies, food security, and safeguarding vulnerable communities;
• Advocate for a renewed Gender Action Plan to promote women’s and marginalized groups’ roles in climate decisions and initiatives to make climate action more inclusive;
• Promote sustainable transport and a circular economy with policies to reduce waste, support green technology, and improve energy efficiency. This includes backing international coalitions and frameworks for sustainable mobility, such as zero-emission vehicle alliances; and
• Advance the Dutch Kingdom’s Climate Agenda Support for Caribbean islands by recognizing their unique vulnerabilities to climate adaptation and stressing the need for technical assistance and climate finance.

The Netherlands aims to use diplomatic partnerships, financial commitments, and technical expertise in water and energy to lead these initiatives, working closely with EU counterparts and other like-minded nations to build consensus and drive action.

On September 17, 2024, the Dutch government announced a EUR3.6 billion (US$3.9 billion) total budget for the Ministry of Foreign Trade and Development Assistance and saw EUR300 million (US$300 million) in cuts from the 2025 development budget.

The funding cuts, outlined in the May 2024 Coalition agreement, includes reversing planned cuts to the Dutch diplomatic network from 22% to 10%, with the shortfall financed from the development budget. Key areas like water management, food security, and health remain prioritized.

A new sub-article for Foreign Trade consolidates support for Ukraine, allocating EUR252 million (US$274 million) to humanitarian and infrastructure support and EUR60 million (US$65 million) for humanitarian demining in 2025.

Additionally, the new government will no longer tie the development budget to the size of the Dutch economy, ending the practice of allocating 0.7% of GNI, as per OECD guidelines.

On July 3, 2024, following the swearing-in of the new Dutch cabinet, Dutch Prime Minister Dick Schoof announced the government declaration in the House of Representatives, highlighting key policy areas and approaches for the cabinet.

Schoof reaffirmed the commitment to the EU and NATO as the cornerstone of the Netherlands’ security and prosperity. He pledged continued support for Ukraine against the Russian invasion and committed to enshrining the NATO standard of 2% of GDP defense spending into law.

Schoof emphasized reducing dependence on external sources and enhancing national resilience through strategic autonomy in energy, food security, and raw materials. He committed to honoring all existing international treaties and minimizing additional national measures, especially in nature and climate policies, to maintain competitiveness.

Schoof also mentioned proactive engagement with the EU to address national concerns and seek exceptions where agreements disproportionately impact the Netherlands, particularly in migration and agriculture.

On June 13, 2024, the Netherlands announced the distribution of its cabinet posts, including the creation of three new ministries: Asylum and Migration, Housing and Spatial Planning, and Climate and Green Growth.

The Dutch government also renamed the Ministry of Agriculture, Nature, and Food Quality to the Ministry of Agriculture, Fisheries, Food Security, and Nature. The Minister for Foreign Trade and Development Cooperation will become the Minister for Foreign Trade and Development Assistance. These changes are meant to mirror the new government’s priorities.

The PVV was allocated five ministers, the VVD and NSC four, and the BBB two. Designated Prime Minister Dick Schoof does not represent any party.

Ministerial appointments with relevance to development included:

• Minister of Climate and Green Growth: Sophie Hermans ( VVD);
• Minister of Finance: Eelco Heinen ( VVD);
• Minister of Economic Affairs: Dirk Beljaarts ( PVV);
• Minister of Agriculture: Femke Wiersma ( BBB);
• Minister of Education: Eppo Bruins ( NSC, CU);
• Minister of Asylum and Migration: Marjolein Faber ( PVV);
• Minister of Health: Fleur Agema ( PVV);
• Minister of Foreign Affairs: Caspar Veldkamp ( NSC); and
• Minister for Foreign Trade and Development Assistance: Reinette Klever ( PVV).

The PVV’s Ministers for Foreign Trade and Development Assistance Reinette Klever and Asylum and Migration Marjolein Faber sparked controversy due to past statements regarding omvolking, or the ‘replacement theory’. Faber and Klever distanced themselves from past use of the term but reiterated concerns about demographic change.

Candidate ministers and secretaries will present themselves in public hearings to the House of Representatives. The new cabinet is expected to be sworn in on July 2, 2024.

On May 16, 2024, the four Dutch coalition negotiating parties– PVV, VVD, NSC, and BBB - agreed to an outline agreement titled Hope, Courage, and Pride, stating that the new Dutch government will cut two-thirds of the current development budget over 2025-2027, or EUR5.9 billion (US$6.4 billion) over the period.

The outline focuses on ten key areas, primarily concerning improving Dutch citizens' livelihoods and social well-being and restricting asylum seekers and migration. The outline states that the Netherlands will contribute to food security and water management in other countries to improve stability, as well as support the regional hosting of asylum seekers to prevent further migration to the Netherlands.

The cuts are slated to start with EUR350 million (US$380 million) in 2025, increasing to EUR550 million (US$598 million) in 2026, and reaching EUR2.5 billion (US$2.7 billion) annually from 2027.

Opposition GroenLinks MP Danielle Hirsch contrasted the cuts with the statement's assertion that the Netherlands is one of the wealthiest countries in the world. Eleven development organizations in the Netherlands released a statement expressing their disapproval and concerns about these unprecedented cuts. Partos asserted that these cuts will damage the Netherlands’ international standing and interests. It calls on the coalition to avoid these cuts and continue investing in international cooperation.

Informants van Zwol and Dijkgraaf completed their task with the outline agreement and recommended appointing van Zwol as the next formator. Van Zwol expects to appoint ministers and state secretaries within four to five weeks to form the new cabinet and flesh out the outline agreement.

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 December 21, 2023, the Netherlands launched its first support package of 2024 to Ukraine, totaling EUR102 million (US$111 million) and aimed at providing urgent needs to help Ukraine get through winter and prepare for spring.

On December 15, 2023, Dutch Minister for Foreign Trade and Development Cooperation Geoffrey van Leeuwen announced intentions for the package during a visit to Ukraine. The package's allocations were:

• EUR62 million (US$67 million) to support the Ukrainian Government in delivering basic services, restoring critical infrastructure, and ensuring reforms through the Special Program for Ukraine and Moldova Recovery, part of the IDA of the World Bank;
• EUR15 million (US$16 million) for humanitarian assistance via UNOCHA’s Ukraine Humanitarian Fund;
• EUR15 million (US$16 million) for the demining of agricultural lands and liberated areas; and
• EUR10 million (US$11 million) in supplies for the Ukrainian electricity network.

The package is part of more than EUR2 billion (US$2.2 billion) that the Netherlands has reserved for support to Ukraine in 2024. Of this, EUR2 billion (US$2.2 billion) will go towards military support, EUR295 million (US$212 million) towards the European Peace Facility, EUR89 million (US$97 million) to combat impunity, and EUR3 million (US$3.3 million) for non-military cyber support.

On December 1, 2023, the Dutch Ministry of Foreign Affairs announced a commitment of EUR150 million (US$164 million) to IFAD’s 13^th replenishment.

The funds are meant to help IFAD double its impact on smallholder productivity, income, and resilience.

Dutch Minister for Foreign Trade and Development Cooperation Liesje Schreinemacher stressed that the threat that climate change poses to global food production and emphasized that small-scale farmers need international investment to effectively adapt to the impacts of climate change.

On May 22, 2023, Minister for Foreign Trade and Development Cooperation Liesje Schreinemacher and Minister of Infrastructure and Water Management Mark Harbers submitted a letter to the Dutch House of Representatives reporting on the Dutch contributions of EUR778 million (US$844 million) at the UN Water Conference held in New York from March 22-24, 2023.

In the letter, the ministers reflected on the positive feedback from the conference, particularly regarding the inclusion of more NGOs. They also outlined a key outcome of the conference, the Water Action Agenda, which resulted in more than 800 voluntary commitments, actions, and initiatives totaling approximately US$300 billion, with a significant amount of commitments made by the private sector and new public-private partnerships.

The ministers also shared a list of Dutch contributions, including:

• EUR50 million(US$54 million) to increase the resilience of vulnerable communities in East Africa to water-related crises;
• EUR140 million (US$150 million) for renewed collaboration with UNICEF in eight African countries to promote access to WASH services;
• EUR240 million (US$257 million) over a four-year period to renew knowledge of agriculture, water, and food;
• A EUR200 million (US$214 million) subsidy over 10 years to ‘promote soil fertility in sub-Saharan Africa’
• US$20 million for an ADB program to increase the resilience of people in Asia and the Pacific Ocean to climate change;
• US$80 million for the World Bank’s Global Water Security and Sanitation Partnership to support countries with their WASH, water security, and water management;
• EUR8 million (US$9 million) for drinking water companies for climate adaptation; and
• EUR40 million (US$43 million) to strengthen collaboration with water authorities.

Other non-financial contributions included MoUs and contracts with Morocco and South Africa on water, a contract with Invest International, Mozambique, and the World Bank around coastal protection, and a Declaration of Intent with Germany to formalize Dutch support to the future Urban Water Catalyst Fund, which will provide small investments in infrastructure by water drinking companies. The ministers also mentioned that the Netherlands’ insistence and the water conference have resulted in the European Council underscoring the need for a stronger EU commitment and strategy on water and water security.

The ministers also committed to keeping up the momentum of the conference by highlighting the Water Action Agenda in different fora, such as the High-Level Political Forum in July 2023, the SDG Summit in September 2023, the international climate and biodiversity summits, the G20 summits, and the Summit of the Future in 2024. They also shared the Netherlands's plan to develop an addendum to the 2019 policy on Dutch International Water Ambition (NIWA) to ensure policy cohesion between national and international policy and as much as possible connect the topic of water to climate, food, finances, energy, urbanization, health, and biodiversity.

While the letter showed a promising picture of the Netherlands’ continued efforts to promote water security worldwide, Dutch media expressed skepticism. For instance, the NRC, a national news outlet, published an op-ed arguing that cuts to the Dutch development budget in spring 2023 decreased the credibility of the Dutch government’s commitment towards global development.

On April 24, 2023, more than 60 Dutch CSOs published a manifesto to urge the government to ensure that the upcoming national Agriculture Agreement works for both national and international farmers, supports food security, and reduces the Dutch environmental footprint.

On November 25, 2022, Dutch Minister for Agriculture, Nature, and Food Quality Piet Adema announced that the Netherlands aims to establish a national Agriculture Agreement. Adema outlined the agreement’s two objectives in a letter to the Senate:

1. The agreement should describe how the Dutch agricultural sector will be future-proof and bolster the economy and earning capacity of farmers in different areas, such as the production of food and raw materials, through support and legal frameworks; and
2. The agreement must describe how the agricultural sector will contribute to solving major nature restoration, water, and climate challenges.

The agreement envisions the Netherlands enabling sustainable transitions and return on investments in farms by 2040. Adema described that multi-stakeholder discussions and buy-in are key to the success of the upcoming agreement, which is expected to be published mid-May, 2023.

On April 24, 2023, a group of 60+ CSOs, including NGOs and academics, published a manifesto to urge the government to broaden the agreement’s focus. They argued that the Netherlands’ agricultural sector is closely linked to production and consumption abroad, and as such, reform should be viewed in an international context. They urged legilators for a strategy for international sustainable agriculture that prioritizes strengthening local food security and ecosystems, rather than Dutch foreign trade interests.

The manifesto closes with eight recommendations for Minister Adema and the Minister for Foreign Trade and Development Cooperation Liesje Schreinemacher. Recommendations include:

• Ensuring that the national Agricultural Agreement creates a level playing field for Dutch farmers but does not hurt local food security in low- and middle- income countries;
• Promoting female farmers’ land rights and inclusion in discussions around sustainable and fair food transition; and
• Focusing on reducing the Dutch environmental footprint and strengthening the capacity of local food markets and production in low- and middle-income countries, for instance, through increased financing for small-scale female farmers that promote the production and consumption of plant-based proteins.