Policy Updates

On June 27, 2024, the Strategic Agenda 2024-2029, which emphasized the EU's commitment to peace, cooperation, and economic prosperity amid a reshaping of the global political landscape marked by strategic competition and instability, was adopted by the European Council.

The EU outlined the following priorities:

• Bolster Europe’s economic competitiveness, including deepening the Single Market in strategic sectors like energy, finance, and telecommunications;
• Strengthen security and defense capabilities within the EU;
• Reinforce EU sovereignty and unity to address strategic competition, climate change, technological advancements, and global instability;
• Strengthen external influence by supporting Ukraine in defending its sovereignty, promoting stability in its neighborhood and beyond, fostering strategic partnerships, and coordinating internal and external policies to address global challenges effectively;
• Uphold human dignity, freedom, democracy, equality, and human rights, while safeguarding the rule of law and enhancing democratic resilience;
• Invest in defense readiness, supporting Ukraine, combating crime, and addressing cyber threats, while enhancing cooperation with NATO and other partners;
• Ensure the proper functioning of the Schengen area, addressing irregular migration, and promoting legal pathways;
• Support the international legal order, promoting peace, democracy, and sustainable development, and reforming the multilateral system;
• Boost economic growth, supporting social welfare systems, investing in skills and education, and reducing disparities across the EU; and
• Pursue a merit-based approach to EU enlargement, supporting aspiring members, and undertaking necessary internal reforms.

On May 29, 2024, the global arm of the EIB committed EUR25 million (US$27 million) to Amethis Fund III, a pan-African fund that supports the growth of medium-sized companies in Africa.

The fund focuses on companies providing goods and services to low and middle-income populations in sectors such as healthcare, business services such as logistics and IT, manufacturing and distribution, agribusiness, consumer goods, non-banking financial services, infrastructure, and energy.

The EIB Global investment aligns with the EU's Global Gateway strategy to promote economic development in sub-Saharan Africa. The fund will implement an impact strategy that addresses issues essential to the sustainable development of the continent, such as gender equality, sustainable employment with an emphasis on health coverage and climate considerations.

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 17, 2024, Team Europe and Nepal announced an EUR65 million (US$70 million) partnership to increase electrical connectivity in rural areas surrounding Kathmandu.

Co-financed with an EUR25 million (US$27 million) loan from the EIB, EUR14 million (US$15 million) from the KfW, and EUR1 million (US$1 million) from the EU, the project will support infrastructure development linking Kathmandu and outlying municipalities.

The project also aims to increase access to electricity from renewable energies, including hydropower from the Trishuli river. In total, the river has to potential to provide up to 650 megawatts with capacity improvements from current projects.

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 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 March 22, 2024, the EIB announced US$125 million in financing for energy infrastructure in Ecuador.

The loan was signed by European Commissioner for the Environment, Oceans and Fisheries Virginijus Sinkevičius as part of the EU - LAC Global Gateway Investment Agenda, which was launched to support regional connectivity and infrastructure in health, climate, and more.

The loan will support the integration of Ecuadorian and Peruvian energy, specifically the development of interconnectors in Ecuador. Key goals of the project included:

• Increased energy trade between the two states;
• Increased energy security, as each state can better benefit from their hydroelectric systems; and
• Progress toward decarbonization.

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.

On March 6, 2024, EIB Representative Nina Fenton attended the inauguration of the Agra Metro, which received an EUR450 millino (US$488 million) loan from the EIB.

The project was funded under the Global Gateway initiative, specifically in the EIB's role as the EU Climate Bank. The initiative was intended to decrease carbon emissions related to travel in the city of Agra, which is a highly trafficked tourist destination. Furthermore, the project aims to reduce high levels of air pollution, increase accessibility of both travel and the monuments, and increase protections for women and girls.

The loan financing the 30 km project, which includes 26 stations, follows a pattern of EIB investments across India focusing on transportation and greenhouse gas emission reductions.