Policy Updates

On August 26, 2025, the UNDP Climate Finance Network and UNCDF convened over 150 participants from 20 countries in Bangkok for a dialogue on mobilizing inclusive climate finance to build resilience in the Asia-Pacific region.

The dialogue addressed the Asia-Pacific region's extreme vulnerability to climate change and the widening gap between funding needs and available resources. UNDP Deputy Regional Director Christophe Bahuet noted the importance of equipping governments with sustainable finance mechanisms to respond to crises. With official development assistance projected to decline, UNCDF's Maria Perdomo stressed the urgent need to mobilize private sector capital for climate action, particularly in the most vulnerable countries.

Key partners, including the UK's FCDO and Sweden, echoed the dialogue's urgent message. Head of Climate and Environment, Indo-Pacific Regional Department at the FCDO John Warburton emphasized that adaptation finance is a matter of survival and fairness. Annamaria Oltorp from the Embassy of Sweden highlighted the need to mobilize resources and forge stronger public-private partnerships to drive collective climate action.

The conference also highlighted successful regional initiatives, such as Indonesia raising over US$10 billion through green bonds and Thailand raising over US$800 million from sustainability-linked bonds. The three-day event aims to find pathways for stronger collaboration and new financing initiatives to accelerate access to climate finance for vulnerable communities.

On August 15, 2025, the Norwegian MCE announced the NOGER Initiative, backed by a NOK8.2 billion (US$803 million) mandate from the Norwegian Parliament to support emission reductions in developing countries through the Paris Agreement's Article 6 framework.

The NOGER Initiative facilitates voluntary cooperation, or carbon trading, between countries to achieve emission targets. This mechanism is intended to help both host and buyer countries increase their climate ambitions beyond their current NDCs.

By promoting this cooperation, the initiative aims to accelerate the global green transition and mobilize private investment in green solutions. The initiative builds on Norway's long-standing experience in international climate cooperation.

On August 14, 2025, the resumed 5^th session of the INC-5.2]{title="Fifth Intergovernmental Negotiating Committee"} in Geneva, Switzerland, concluded without reaching a consensus on a legally binding treaty to end plastic pollution, though UNEP Executive Director Inger Andersen and UN Secretary-General António Guterres noted that all member states agreed to continue negotiations.

Negotiations to establish a legally binding instrument to end plastic pollution concluded without an agreement. UN officials, including UNEP Executive Director Andersen and UN Secretary-General Guterres, acknowledged the outcome but emphasized that all countries remained committed to the process. The talks, which included delegates from 183 nations and representatives from over 400 CSOs faced significant differences on key issues.

The US delegation supported an agreement that allows for tailored, country-specific solutions to reduce plastic pollution while opposing prescriptive, top-down regulations. INC Chair Luis Vayas Valdivieso and INC Executive Secretary Jyoti Mathur-Filipp reaffirmed their dedication to moving forward and achieving a future agreement.

On August 12, 2025, the UNDP, with US$10 million in funding from the Republic of Korea, launched the REVIVE project in Afghanistan to support over 350,000 people.

The project will run from July 2025 to July 2026 across six provinces: Badakhshan, Zabul, Daikundi, Faryab, Khost, and Nangarhar. The REVIVE project focuses on creating emergency employment, rehabilitating essential infrastructure, and improving community-level food security, with an emphasis on climate resilience and women’s empowerment.

UNDP Resident Representative in Afghanistan Stephen Rodriques stated that the project serves as a bridge between crisis and recovery by investing in local resilience and sustainable opportunities.

Chargé d’affaires of the Republic of Korea to Afghanistan Sung-hwan Moon reaffirmed his country's commitment to supporting the Afghan people, particularly women, children, and refugees, and highlighted that the project will help communities rebuild livelihoods and move toward a self-reliant future.

On July 25, 2025, Germany announced a EUR500 million (US$586 million) loan to South Africa, through the German development bank KfW, which aims to facilitate reforms in South Africa’s energy sector to create a better environment for private investment and support the country's transition to renewable energy.

The funds will support the expansion of the necessary grid infrastructure for solar and wind power. The loan is composed entirely of market funds.

The initiative is part of the JETP, through which Germany, the UK, France, the Netherlands, Denmark, and the EU support South Africa's climate and energy policy. Under the JETP, the South African government committed to accelerating its phase-out of coal. The loan will promote the needed expansion of South Africa’s power grid, with a target of constructing over 14,000 kilometers of new transmission lines by 2032.

On 22 July 2025, Germany presented its third Voluntary National Review, reaffirming its commitment to accelerating implementation of the 2030 Agenda at the 2025 High-level Political Forum on Sustainable Development in New York.

Represented by Parliamentary State Secretary Dr. Bärbel Kofler and her colleague from the Federal Environment Ministry Rita Schwarzelühr-Sutter, Germany emphasized the need for stronger international cooperation in the face of climate change, geopolitical tensions, and economic shocks.

The German delegation highlighted national progress on SDG 5 (gender equality) and SDG 7 (renewable energy), attributing these achievements to broad participation from civil society, youth, academia, and local governments. Germany also hosted a side event on SDG 14 (ocean protection), which explored pathways to scale marine conservation and promote sustainable maritime economies.

Citing the UN’s 2025 SDG report, which warns that only 20% of goals will be met without acceleration, Germany stressed that global partnerships and inclusive implementation are vital to achieving the 2030 Agenda.

On July 22, 2025, the US announced its decision to withdraw from UNESCO, citing concerns over the agency's perceived anti-Israel bias and promotion of divisive causes.

The US State Department stated the withdrawal, effective December 2026, was due to UNESCO's agenda and its admission of Palestine as a member state. This marks the third time the US has left the agency, having last rejoined in 2023 after a 2018 departure under the previous Trump administration. The US first left in 1984 due to security concerns around the Soviet Union before rejoining in 2003.

Alongside its cultural programming, UNESCO supports a number of education, SRHR education, literacy, clean water, and gender equality initiatives. It also helps set standards for ocean protection and AI ethics and protect cultural heritage and education in conflict zones.

UNESCO’s Director-General Audrey Azoulay noted her regret over the decision but stated it was anticipated. She denied the accusations of anti-Israel bias, pointing to the agency's work on Holocaust education and fighting antisemitism. Azoulay noted that the reasons cited by the US were the same as cited in the previous departure, despite significant changes and reduced political tensions within the organization.

The withdrawal will impact UNESCO's budget, as the US contributes 8% of its funding. However, the agency has diversified its funding sources and stated that it does not anticipate any immediate staff layoffs.

On July 21, 2025, analysis from the Lowy Institute interactive Southeast Asia Aid Map highlighted the impact that major US and European ODA cuts are set to have on South-East Asia’s LICs.

Australia continues to provide targeted assistance in areas such as gender, climate, and disability, but its overall ODA contribution remains low compared to other OECD countries. The Lowy Institute warns that without renewed commitments from Western donors, long-term climate adaptation and poverty reduction efforts in South-East Asia may suffer.

Stakeholders are encouraged to review ODA strategies to ensure effective and equitable support for the region.

On July 15, 2025, the Spanish Minister of Foreign Affairs José Manuel Albares announced nearly EUR62 million (US$73 million) in voluntary contributions to international organizations, reinforcing Spain’s multilateral support through AECID which will address key challenges such as food security, humanitarian assistance, climate change, and gender equality.

The contributions aim to accelerate development and humanitarian efforts, especially amidst global budget cutbacks, and complement previous packages approved this year. So far, Spain has allocated over EUR150 million (US$176 million) to 42 multilateral organizations in 2025, underlining its commitment to supporting vulnerable populations, sustainable development, and international cooperation.

Major recipients include UNICEF, UNFPA, FAO, the Climate Adaptation Fund, UN -Women, WFP, WHO, PAHO, UNRWA, UNHCR, and IOM, among others.

On July 14-15, 2025, JICA signed grant agreements worth a total ofJPY3.2 billion (US$22 million), one agreement of JPY2.5 billion (US$17 million) to the Republic of Vanuatu, and an agreement with UNICEF for the Project for the Eradication of Poliomyelitis in Afghanistan JPY714 million (US$5 million).

The agreement with the Republic Of Vanuatu aims to rebuild key economic infrastructure affected by the earthquake, promote disaster-resilient socio-economic development by reconstructing the Tagabe Bridge, and provide maintenance equipment. The program is led by MIPU and the Ministry of Health. The initiative seeks to contribute to the SDGs, specifically, SDG 9 (industry, innovation, and infrastructure), SDG 11 (sustainable cities and communities), and SDG 13 (climate action).

The Project for the Eradication of Poliomyelitis in Afghanistan, supports vaccine procurement and technical assistance to help reduce polio among children, and advance SDG 3 (good health and well-being).