Policy Updates

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 April 30, 2024, it was announced that, as a part of the G7 Finance Track, the Italian MEF and ISTAT will host the seventh edition of the OECD World Forum on Wellbeing, entitled Strengthening Wellbeing Approaches for a Changing World, in Rome from November 4-6, 2024.

The event is part of the G7 Finance Track promoted by the Italian government. The Forum will be structured into five round tables that will discuss topics, including:

• The development of policy frameworks oriented towards equitable and sustainable well-being;
• The measurement and statistical methodology, as well as the analysis of well-being indicators;
• Climate change;
• Technological innovation and the use of artificial intelligence; and
• The next steps in the well-being agenda.

Other topics to be addressed include gender inequalities, inequalities and poverty, physical and mental health, and the aging population.

On February 26, 2024, AICS and the Italian Ministry of Environment and Energy Security entered a Collaboration Agreement, totaling EUR982 million (US$1 billion), to finance pathways of transformative promotion and awareness-raising for sustainable development and global citizenship through 2027.

The funding is intended to support the experimentation of collaborative modalities among different institutional, research, and non-state actors.

The partnership was described as pivotal to fully implementing Italy's National Strategy for Sustainable Development and the Strategy for Education for Global Citizenship.

On January 28 and 29, 2024, Italy hosted the Africa-Italy Summit, chaired by the Italian Prime Minister Giorgia Meloni, during which 25 African leaders and diplomats joined Italian and EU leaders to launch the pilot programs of Italy's flagship foreign policy initiative, also known as the Mattei Plan for Africa.

Meloni announced EUR5.5 billion (US$6 billion) in credits, grants, and guarantees under the plan. EUR3 billion (US$3.3 billion) will come from the Italian Climate Fund, as announced at COP28, and EUR2.5 billion (US$2.7 billion) will come from the newly created multilateral fund at the African Development Bank.

Rome identified a set of countries in the SSA and North African regions to begin implementing the plan, and noted aims to expand the list. Among the first projects announced were:

• A large vocational training center on renewable energy in Morocco;
• Education projects in Tunisia; and
• Health accessibility in the Ivory Coast.

Other projects are planned in Algeria, Egypt, Ethiopia, Kenya, Mozambique, and the DRC.

Priority areas of intervention were announced as:

• Education and training: Interventions will be aimed to promote training teachers, adjusting curricula, launching new vocational and training courses in line with the needs of the labor market, and collaborating with enterprises, particularly involving Italian operators and the Italian SMEs model;
• Agriculture: Interventions will be aimed at decreasing malnutrition rates, fostering the development of agri-food supply chains, and supporting the development of non-fossil biofuels. The development of family farming, the preservation of forestry, and combating and adapting to climate change through integrated agriculture are considered fundamental;
• Health: Interventions will be aimed to promote strengthening health systems, improving accessibility and quality of primary MNCH services, strengthening local capacities for the management, training, and employment of health personnel, research, and digitalization, and developing strategies and systems to prevent and contain health threats, particularly pandemics and natural disasters; and
• Energy: Interventions will be aimed to make Italy an energy hub, acting as a bridge between Europe and Africa. Interventions will feature the climate-energy nexus to strengthen energy efficiency and the use of renewable energies, with initiatives to accelerate energy transition.
• Water: interventions will involve drilling wells powered by photovoltaic systems, maintenance of pre-existing water points, investments in distribution networks, and awareness-raising activities about using clean, potable water.

On December 2, 2023, at COP28, Italy signed a Memorandum of Understanding underlining future climate cooperation between Italy and Ethiopia, which committed approximately EUR7 million (US$8 million) from Italy's Ministry of Environment and Energy Security to projects for CO₂ reduction and climate adaptation.

The signing occurred during a meeting between Italian Minister of Environment and Energy Security Gilberto Pichetto-Fratin and Ethiopian Minister of Planning and Development Fitsum Assefa.

On December 2, 2023, the EU institutions, the EIB, the EBRD, and the Member States that comprise Team Europe pledged EUR20 billion (US$21.8 billion) for clean energy partnerships with African partners.

The funding announcement listeed EUR3.4 billion (US$3.7 billion) in grants and covered the period from 2021-2027. The project, AEGEI, aims to produce over 50 Gigawatts of renewable energy by 2030.

12 EU Member States contributed to the funding. No language regarding specific partner countries was included in the announcement.

On December 1, 2023, Italian Prime Minister Giorgia Meloni attended the Global Stocktake high-level panel on adaptation at COP28 and announced that Italy will contribute EUR100 million (US$109 million) to the Loss and Damage Fund benefitting nations most vulnerable to climate change, a figure that surpassed the pledges of both Germany and the UAE and equalled that of France.

Meloni stated she will work to double adaptation finance by 2025, as committed at COP26 in 2021. She emphasized the essential role of MDBs in climate finance and highlighted the need for reform, stressing that the G7 will play a key role.

Meloni also attended the high-level segment for Heads of State and Government. She announced that Italy would continue to support the GCF in the next cycle and confirmed previous commitments totaling EUR300 million (US$328 million).

On November 27, 2023, the Italian Parliament adopted a COP28 resolution, signed by 19 Italian MPs from all parties in the majority coalition, committing to 0.7% ODA/GNI with half of ODA dedicated to tackling climate change.

MP Piergiorgio Cortellazzo promoted the resolution from the major coalition and the governing Forza Italia, which is the party of Minister of Environment and Energetic Security Gilberto Picchetto Fratin and Vice Prime Minister and Minister of International Affairs and International Cooperation Antonio Tajani.

On November 22, 2023, the Italian Joint Development Cooperation Committee approved additional resources to mitigate the effects of war on Ukrainian and Palestinian civilians, totalling EUR17 million (US$18 million) for Ukraine and EUR5 million (US$5 million) for Palestine.

The committee also approved a package of initiatives, including EUR8 million (US$8.7 million) for Africa, focusing on food security, health, education, and training aimed at professional improvement.

Resources for Tunisia were approved at a total of EUR3 million (US$3 million) for 2024, an increase compared to 2023 programming. Italy has emphasized Tunisia as a priority partner.

The committee voted to approve the channeled allocation of EUR998 million (US$1 billion) in funds for development cooperation initiatives in 2024. The allocations detailed:

• EUR537 million (US$586 million) to bilateral cooperation;
• EUR271 million(US$295 million) to emergency funding; and
• EUR190 million (US$207 million) to multilateral cooperation.

The committee also approved a contribution of EUR2 million(US$2 million) for the Balkan region to strengthen disaster preparedness and response capacities in Bosnia and Herzegovina.

Finally, the Committee gave a favorable opinion on two initiatives proposed by Cassa Depositi e Prestiti, which included:

• Financing projects related to the agricultural and agribusiness supply chain through the West African Development Bank; and
• Refinancing of a line of credit in Latin America and the Caribbean in support of investments in the environmental sector and the fight against climate change.