Policy Updates

On April 25, 2025, the German Development Minister Svenja Schulze stressed the need to strengthen multilateral cooperation to address climate change, conflict, and inequality at the World Bank Spring Meetings, reaffirming Germany's commitment to the World Bank's reform agenda, including increased focus on climate resilience, poverty reduction, and gender equality.

Schulze pledged continued German support for the IDA , and backed the ongoing reform to enhance its financial capacity through innovative tools such as hybrid capital and portfolio guarantees, emphasizing that global challenges require joint, reliable funding efforts.

She called for expanded partnerships between the World Bank, other multilateral development banks, and private sector actors to mobilize more resources for global development goals. Schulze also highlighted the need to integrate climate action and social protection into its core mission without losing focus on poverty reduction.

On April 9, 2025, the CDU/ CSU and SPD parties in Germany finalized their coalition treaty, where Chancellor-designate Friedrich Merz, Bavarian Minister-President Markus Söder, and SPD Co-Chairs Lars Klingbeil and Saskia Esken presented an agreement that focuses on Germany’s global leadership, economic modernization, and migration control.

Key highlights include:

• BMZ remaining independent: The BMZ will retain its independent status, with Minister Svenja Schulze expected to continue her leadership. This decision reflects advocacy efforts from various stakeholders and ensures BMZ’s role in Germany’s development policy;
• ODA target revised: For the first time in 30 years, the 0.7% ODA/ GNI target has been excluded from the coalition treaty. Instead, the treaty calls for reducing the ODA quota to consolidate the federal budget. Germany’s ODA contribution was 0.82% of GNI in 2023 but saw a EUR940 million (US$1 billion) cut to BMZ ’s budget in 2024. Voluntary contributions to international organizations are also set to decrease;
• A new development policy approach: The treaty outlines a shift toward aligning development policy with Germany’s geopolitical and economic interests. It calls for consolidating development-related responsibilities under BMZ leadership, potentially including initiatives like the International Climate Initiative, currently housed in the BMWK;
• Strengthened inter-ministerial cooperation: The treaty emphasises better coordination across BMZ, the AA, and the BMVg to improve policy coherence and align development efforts with strategic objectives;
• Commitment to sovereign debt and tax systems: The treaty reaffirms support for resolving sovereign debt crises and strengthening tax systems in developing countries, aligning technical and financial cooperation with European development policy; and
• The climate sections remaining unchanged: The climate sections remain consistent with earlier drafts, with a focus on domestic action over international initiatives.

This coalition treaty signals a strategic pivot in Germany’s development policy, prioritizing geopolitical alignment and fiscal consolidation.

On December 17, 2024, the German political parties published their election programs ahead of the February 2025 elections, showing clear differences in their proposals for development cooperation and humanitarian assistance.

The two remaining parties of the governing coalition, the left-leaning SPD and the Greens, both embraced independent development cooperation, led by a strong, independent BMZ.

The center-right opposition party CDU/CSU, by contrast, proposed bringing development cooperation, led by the BMZ, and humanitarian assistance, led by the AA, together. The liberal FPD originally put forth the proposal to merge the BMZ and the AA.

The SPD and Greens emphasized Agenda 2030 and multilateralism as guiding principles and highlighted their continued commitment to 0.7% ODA/GNI. The Greens also proposed leveraging additional funding for climate goals. The CDU/CSU and FPD made no such commitments.

All parties, but the CDU/CSU in particular, stressed a shift to align development with German interests. The CDU/CSU noted its ambition to gear development towards migration management, with criteria intended to stem irregular migration flows. The party also sought to link development to geopolitical and security goals, as well as economic aims and the promotion of international trade.

The SPD and Greens noted their desire to maintain Germany's feminist foreign and development policy, and listed their commitments for global health, climate, and agriculture. The CDU/CSU and FPD did not specifically mention policy aims for health, climate and agriculture, but stated that they will focus on women's rights as part of development policy.

On November 19, 2024, Minister for Foreign Affairs Annalena Baerbock traveled to Baku to attend COP29 with Special Representative for International climate policy Jennifer Morgan.

Together with other countries, German Chancellor Scholz signed a statement of the country coalition High Ambition Coalition calling for an increase in international climate financing. The coalition demands increased ambition, yet financing models remain unclear.

The German position is weakened through the governing coalition's break-down on November 6, 2024. Moreover, the German government will likely fail to meet its climate goals, including for international climate finance.

On May 28, 2024, German State Secretary Jochen Flasbarth became the first high-ranking German official to meet the new Senegalese government following President Bassirou Diomaye Faye’s election, where he discussed energy transition, local vaccine production, and creating jobs for the local youth population.

Flasbarth emphasized the long-standing partnership between Germany and Senegal, particularly in renewable energy, highlighting Senegal's peaceful governmental transition as a sign of its robust democracy.

Senegal's government expressed commitment to continuing its strong partnership with Germany, especially within the framework of the Just Energy Transition Partnership established in 2023. The partnership involves multiple international stakeholders and aims to enhance energy supply, reduce poverty, and create job opportunities, especially for young people. Flasbarth’s visit also addressed vocational training and support for small enterprises to generate new income opportunities.

The cooperation includes establishing a vaccine production facility in Diamniadio and creating an independent regulatory body for vaccine approval. The initiative aims to position Senegal as a key player in the West African public health sector by enhancing local medicine and vaccine supply capabilities.

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 22, 2024, the BMZ At the OECD Forum on Responsible Mineral Supply Chains in Paris, the BMZ presented a position paper emphasizing the importance of ethical resource extraction practices and urged responsible resource extraction to prevent human rights abuses and environmental damage during the energy transition.

Parliamentary State Secretary Dr. Bärbel Kofler highlighted the ministry's commitment to ensuring that Germany's energy and transportation transition does not contribute to human rights violations or environmental degradation in resource-rich countries. The paper outlined how German development cooperation can help balance interests fairly with resource-producing nations in Latin America, Africa, and Asia.

Kofler stressed the prevalence of human rights abuses and environmental harm in mining activities, including child labor and water pollution. She emphasized that Germany and Europe’s energy transition must not come at the expense of communities and ecosystems in supplier countries. The paper advocated for stringent oversight of supply chains, as mandated by Germany's 2023 Supply Chain Act, which requires thorough tracking from mining to end product to uncover and address violations.

The OECD forum, established in 2011, serves as a key platform for international stakeholders from business, politics, and civil society to discuss responsible mineral supply chains. The OECD’s guidelines for due diligence in high-risk areas have become essential references for legislation and industry standards, promoting responsible practices globally.

On May 21, 2024, the BMZ and German Development Minister Svenja Schulze introduced updated guidelines for sustainable textile procurement, aiming to incorporate more rigorous ecological and social criteria.

Germany's new guidelines emphasized ecological and social criteria for public textile purchases, aiming to set a global standard for responsible procurement across various public sectors and aims to enhance responsible purchasing practices. The new standards are meant to ensure that textiles are produced without child labor or environmental damage.

The guidelines, developed by the BMZ in coordination with other ministries, are intended for use by all federal authorities and administrations. The updated guidelines offer practical advice on embedding human rights due diligence in public procurement, mirroring requirements in the private sector under Germany’s Supply Chain Act. The guidelines also introduce stricter ecological requirements, benefiting the predominantly female workforce in the textile industry.

The German government stated that it aims to leverage its significant purchasing power to promote global social and environmental standards by committing to procure at least 50% of all textiles according to these guidelines by 2026.

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.